Do you know how to screen for dividend stocks in the stock market? One of the ways I use to find dividend stocks is to use a tool called a stock screener. Most stock screeners are available for free. A few websites that I know of that offers free stock screeners are FSMOne, Yahoo and Singapore Exchange.
My favorite stock screener is from Stocks Café. With a paid subscription, I can save my preferred stock screening criteria and not having to enter them every time. Stocks Café is also where I managed my stock portfolio.
Every end of the month, I will run the Stocks Café stock screener which gives me a list of stocks that fulfill my dividend criteria. I fall into the medium risk type of investor and thus I never looked at stocks with dividend yield more than 10%. Below are the criteria that I used to identify dividend stocks.
- Current Yield (%) >= 5 and <= 10
- Price / Earnings <=20
- Price / Book <= 3
- Market Capitalization >= 1B
Dividend Yield
As a dividend investor, one criteria that I will definitely like to have is the dividend yield. I usually screen for stocks that gives a dividend yield of between 5% to 10%. We need to be careful with stocks that provides extremely high dividend yield and do our due diligence to further investigate the company that it is not borrowing money to pay out dividends.
P/E Ratio (Price to Earnings Ratio)
We also refer P/E ratio as Price to Earnings ratio. It is calculated by dividing the current market price of the stock by its earning per share (EPS). It also means how much investors are willing to pay per share of the company. My preferred settings are stocks less than 20x earnings.
P/B Ratio (Price to Book Ratio)
We refer P/B ratio as Price to Book ratio. P/B ratio is calculated by dividing the price per share by book value per share. A value lower than 1 is considered as a good P/B ratio and could mean that the stock is undervalued. My preferred P/B Ratio is below 3.
Market Capitalization USD (in millions)
If you have followed my previous stock analysis of companies, one of the criteria I often looked at is the market capitalization of the company. Market capitalization refers to the total value of all a company’s shares of stock. I currently look at companies with market capitalization above one billion.
Top Dividend Yielding Stocks
As retail malls and shops start to open up after circuit breaker, the stock market has started its recovery. This can be seen from the Straits Times Index stock chart below.
Below are the top dividend yielding stocks as of 28th June 2020. I believe you will see some REITs that you have been eyeing for before the stock market had crashed. Even though the stock prices have started the recovery, the current yield is still attractive.
| Name | Current Yield % | P/E | P/B | Market Cap |
| CromwellReit EUR | 9.714 | 9.05 | 0.814 | 1.1B |
| CromwellReit SGD | 9.51 | 9.32 | 0.848 | 1.7B |
| CDL Hospitality Trust | 8.757 | 11.08 | 0.674 | 1.3B |
| OUE Commercial Reit | 8.38 | 14.96 | 0.647 | 2.1B |
| CapitaR China Trust | 7.734 | 8.26 | 0.826 | 1.6B |
| Starhill Global Reit | 6.524 | 19.73 | 0.594 | 1.1B |
| ComfortDelGro | 6.441 | 14.27 | 1.23 | 3.3B |
| UOB | 6.388 | 8.19 | 0.857 | 33.7B |
| SATS | 6.376 | 14.81 | 2.059 | 3.3B |
| SPH | 6.154 | 10.29 | 0.608 | 2.1B |
| Frasers Logistics & Industrial Trust | 6.093 | 11.48 | 1.295 | 4B |
| DBS | 6.052 | 5.7 | 1.086 | 52.9B |
| Hong Leong Finance | 6.048 | 10.75 | 0.58 | 1.1B |
| Jardine Cycle & Carriage | 6 | 6.63 | 0.864 | 8B |
| OCBC Bank | 5.863 | 6.19 | 0.871 | 39.8B |
| Yanlord Land | 5.862 | 3.41 | 0.411 | 2.2B |
| TCIL HK$ | 5.82 | 17.86 | 0.336 | 3.8B |
| Olam Intl | 5.674 | 8.51 | 0.834 | 4.5B |
| Bukit Sembawang | 5.641 | 13.27 | 0.763 | 1B |
| Suntec Reit | 5.581 | 10.28 | 0.675 | 4.1B |
| Genting Singapore | 5.263 | 13.31 | 1.137 | 9.2B |
| CapitaCom Trust | 5.133 | 15.18 | 0.939 | 6.7B |
| SPH REIT | 5.119 | 14.07 | 0.934 | 2.4B |
Last, I just want to mention again that the above list is for reference only and we should do our homework before buying into the stock simply for the dividend yield.