The Best Fixed Deposits of July 2019

The effective interest rate for August 2019 Singapore Savings Bonds (GX19080E) is 2.01% if you held it for 10 years. As written previously in my monthly post on Singapore Savings Bonds, the interest rate is the lowest in 12 months. But what if you only want to hold it for 1 year?

As shown in the table below, the interest rate is only 1.68% if you buy August 2019 Bond and redeem it after 1 year. This is lower than the interest rate of 12 months fixed deposits offered by banks which makes this month issue of the Singapore Savings Bonds unattractive.

If you have spare cash to lock down for 1 year, why not take a look at some of the fixed deposit promotions currently offered by the banks? Below are the 12 months fixed deposit offered by banks which beats August 2019 issue of the Singapore Savings Bonds: Read More

Frasers Logistics and Industrial Trust Proposed Acquisition of 12 Prime Properties in Germany and Australia

Frasers Logistics and Industrial Trust is back into action to acquire more properties. Today, the manager of Frasers Logistics and Industrial Trust has announced the proposed acquisition of 12 properties in Germany and Australia for A$644.7 million (approximately S$612.5 million).

Here are some information on the New Properties and the acquisition:

  • The New Properties are 100% freehold and strategically located within the major logistics hubs of Germany and Australia.
  • The New Properties have 100% occupancy with a long WALE (“Weighted Average Lease Expiry”) of 8.6 years.
  • There is a mixture of quality tenants ranging from logistics services, automotive, food logistics and industrial manufacturing. All of the leases to these tenants have consumer price index linked indexation or fixed escalations.
  • Funding for the Purchase Consideration will be via a combination of equity and borrowings.

Based on the current share price of S$1.23 and a historical dividend of 7.19 cents paid out in FY18, this translates to a current dividend yield of 5.84%.

The announcement mentioned that the acquisition will be funded via equity and borrowings. Thus, are we expecting another upcoming Preferential Offering?

Screening For Dividend Stocks In July 2019

How do you find stocks to buy on the stock market? One of the way is to use a stock screener. There are several websites that offer such a tool to screen for stocks using conditions that you can set such as dividend yield, P/E ratio, P/B ratio and Market Capitalization etc. Some website that offers such a tool are Singapore Exchange, FSMOne and StocksCafe.

For myself, I prefer to run my dividend stocks screening using StocksCafe as it allows me to save the conditions that I can pre-set. You can check out my review here on the StocksCafe Dividend Stocks Screener (Read more: Screening For Dividend Stocks Using Stocks Cafe Stock Screener).

Here are the results generated on 2nd July 2019 ordered from the highest current dividend yield to the lowest. Read More