Screening For Dividend Stocks In January 2020

Happy Chinese New Year!

The last time I screen for dividend stocks was back in November 2019. Since its a brand new year and the first month of the year 2020, I am interested to find which stocks currently provide the highest dividend yield.

How do I find stocks to analyse and decide if it is worth investing? Every month, I will always start by running the stock screener that I have saved on Stocks Café. 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.

The stock screener offered by Stocks Café allows me to save the conditions that I can pre-set. You can check out my review here on the Stocks Café Dividend Stocks Screener (Read more: Screening For Dividend Stocks Using Stocks Cafe Stock Screener).

Below are the top dividend yielding stocks as of 25th January 2020.

Name Current Yield % P/E P/B Market Cap
Sasseur REIT 9.651 5.25 1.03 1B
Haw Par 9.055 14.79 0.927 2.8B
OUE 8.784 7.11 0.329 1.3B
Capita Retail China Trust 6.822 10.2 1.052 2B
Frasers Logistics and Industrial Trust AUD 6.802 10.11 1.059 2.5B
Cromwell REIT SGD 6.786 11.85 1.074 2.1B
SPH REIT 6.404 17.36 1.155 3B
OUE Commercial REIT 6.268 12.58 0.923 3B
Mapletree NAC Trust 6.06 6.4 0.88 4B
Ascendas-iTrust 5.794 8.15 1.635 1.9B
Frasers Commercial Trust 5.783 10.1 1.014 1.5B
SPH 5.742 16.69 0.979 3.4B
Frasers Logistics and Industrial Trust 5.738 11.86 1.271 2.8B
DBS 5.725 10.79 1.382 66.7B

The above results look pretty interesting as there are some stocks that are unfamiliar to me such as Ascendas-iTrust.

Ascendas India Trust is a property trust which owns seven IT parks and one logistics park in India with total floor area of 13.1 million sq ft spread across Bangalore, Chennai, Hyderabad, Pune and Mumbai. Ascendas India Trust is focused on capitalising on the fast growing IT and logistics industries in India.

Mapletree NAC Trust also appear in the above list as the top dividend yielding stocks but we should be careful here as Mapletree NAC Trust has yet to walk out of the impact of the Hong Kong riots. (Read more: Mapletree North Asia Commercial Trust DPU Fell 13.3% )

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.

Mapletree North Asia Commercial Trust DPU Fell 13.3%

Mapletree North Asia Commercial Trust has announced their 3QFY19/20 financial results on 17th January 2020. As expected, gross revenue fell 36.3% to S$67.3m as compared to S$105.6m in 3QFY18/19. Net Property Income also fell 40% to S$50.8m. Distribution fell 13.3% to 1.671 cents. The DPU already included the distribution top up due to Festival Walk closure. Without the top up, the DPU can be worst.

Due to the damages from the riots, Festival Walk has been closed since 13 November 2019. With the mall closure, rental was not collected from the retail tenants. The mall has re-opened and collection of rental resume on 16th January 2020.

3QFY19/20 Financial Results

3QFY19/20
(S$’000)
3QFY18/19
(S$’000)
Change
Gross Revenue 67,277 105,626 (36.3)%
Net Property Income 50,776 84,592 (40.0)%
Distributable Income 53,379 61,006 (12.5)%
Distribution Per Unit (“DPU”) (cents) 1.671 1.927 (13.3)%

Occupancy Rates

As of 31st December 2019, overall portfolio occupancy stood at 96.3%. What surprises me was that occupancy for Festival Walk stood at 100% even though the mall was damaged by the riots.

Debt

Aggregate leverage stood at 37.1%.

Distribution Per Unit

It is extremely hard to forecast the distribution yield due to the distruption of DPU in 3QFY19/20. Based on the closing price of S$1.24 on 21st January 2020 and an estimated FY19/20 annualized DPU of 7.229 cents (1.95+1.937+1.671+1.671), this translate to a dividend yield of 5.83%.

Summary

At the current price of S$1.24, my opinion is that it is too risky to enter given my estimated dividend yield of 5.83%. Nobody knows but things can get worst or better. If you have not noticed, given the weak occupancy at Gateway Plaza, Sandhill Plaza and its recently acquired Japan properties, I do not think its advisable to jump onto the wagon right now just because news of Hong Kong riots have pushed the share price down.

I currently do not own any shares of Mapletree North Asia Commercial Trust. However, my preferred entry price will be S$1.16 and below for an estimated dividend yield of at least 6.20%.

Screening For Dividend Stocks In November 2019

How do I find stocks to analyse and decide if it is worth investing? Every month, I will always start by running the stock screener that I have saved on Stocks Café. 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.

The stock screener offered by Stocks Café allows me to save the conditions that I can pre-set. You can check out my review here on the Stocks Café Dividend Stocks Screener (Read more: Screening For Dividend Stocks Using Stocks Cafe Stock Screener).

Below are the top 10 dividend yielding stocks as of 14th November 2019.

Name Current Yield % P/E P/B Market Cap
OUE 8.904 19.94 0.33 1.3B
Haw Par 8.765 16.29 0.969 3B
CapitaRetail China Trust 7.316 9.57 0.987 1.8B
Cromwell REIT SGD 7.183 10.96 0.931 1.9B
Cromwell REIT EUR 7.098 11.45 0.966 1.3B
Mapletree NAC Trust 6.757 6.05 0.853 3.9B
Mapletree Industrial Trust 6.076 16.93 1.58 5.4B
Frasers Commercial Trust 5.963 9.77 0.982 1.5B
Yanlord Land 5.714 4.83 0.473 2.4B
Frasers Logistics and Industrial Trust 5.691 11.86 1.271 2.7B

With the ongoing protests in Hong Kong, this has impacted REITs that have Hong Kong assets in its portfolio. Protesters are vandalising malls and this causes shoppers to stay at home, forcing shopping malls and shops to shut their doors.

One such example is Mapletree North Asia Commercial Trust which has Festival Walk as one of its assets.

Mapletree North Asia Commercial Trust is a real estate investment trust, which invests directly or indirectly in a diversified portfolio of income-producing real estate in Hong Kong SAR, China and Japan. It focuses on commercial assets as well as real estate-related assets. Its objective is to achieve an attractive level of return from rental income and long-term capital growth. The company was founded in February 2013 and is headquartered in Singapore.

When the share price fall, the current dividend yield increases. Further analysis is required to check the fundamentals of Mapletree North Asia Commercial Trust if it is still able to sustain its historical dividend payout.

Opportunity?