Looking for dividend stocks to buy in August 2020 but not sure where to start? When the stock market crashed during the COVID-19 pandemic, I have picked up OCBC Bank, Singtel, US Manulife REIT and added more of CapitaMall Trust when their stock prices fell. If you didn’t know, I am a dividend investor. Thus, I usually look out for stocks with attractive dividend yield that provides me with endless dividends many years ahead. The stock market crash has provided me with such an opportunity.
One of the easiest way to start is to identify a list of stocks that fulfil the criteria of a dividend stock. Instead of manually or randomly picking off companies off the Singapore Stock Exchange, I will run my favourite stock screener from Stocks Café. There are plenty of stock screening tools out there. You can use the one you are comfortable with.
I am a 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
Below are the top dividend yielding stocks as of 15th August 2020 for reference.
|Name||Current Yield %||P/E||P/B||Market Cap|
|OUE Commercial Reit||7.108||14.98||0.607||2B|
|CDL Hospitality Trust||6.184||11.08||0.696||1.3B|
|Hong Leong Finance||5.696||10.27||0.557||1.1B|
|Jardine Cycle & Carriage||5.695||6.25||0.803||7.5B|
|CapitaRetail China Trust||5.667||7.55||0.717||1.4B|
|Frasers Logistics & Commercial Trust||5.406||12.94||1.46||4.5B|
Dividend investors should know that the current dividend yield is computed using the previous full year dividend payout divided by the current share price. This excludes the consideration that most companies might slash dividends this financial year due to COVID-19 pandemic. The actual dividend yield may be lower this year.
Thus, remember to study into each company carefully before jumping onto the bandwagon based on the current dividend yield.