Looking for dividend stocks to buy in September 2020 but not sure where to start? As a dividend stock investor, I always keep a watch list of dividend yielding stocks on hand. When stock prices goes up, the current dividend yield decreases. When stock prices fall, the current dividend yield increases. This poses an opportunity for dividend stock investors to pick up the stock at higher yield and cheaper price.
One of the easiest way to create a watch list of dividend yielding stocks is to use a stock screener. My favourite stock screener is 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 conditions I set in the stock screener 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 11th September 2020 for your reference.
| Name | Current Yield % | P/E | P/B | Market Cap |
| CromwellReit EUR | 8.767 | 9.27 | 0.855 | 1.1B |
| CromwellReit SGD | 8.474 | 9.96 | 0.895 | 1.8B |
| Ascendas-iTrust | 8.154 | 6.09 | 1.226 | 1.6B |
| SPH | 7.547 | 8.39 | 0.495 | 1.7B |
| OUE Commercial Reit | 7.108 | 14.98 | 0.607 | 2B |
| ComfortDelGro | 6.527 | 14.08 | 1.312 | 3.3B |
| Olam International | 6.452 | 7.48 | 0.705 | 4B |
| Jardine Cycle & Carriage | 6.031 | 5.9 | 0.757 | 7.1B |
| CDL Hospitality Trust | 6.009 | 11.4 | 0.717 | 1.3B |
| Yanlord Land | 5.913 | 3.38 | 0.401 | 2.2B |
| Hong Leong Finance | 5.895 | 9.92 | 0.538 | 1B |
| UOB | 5.876 | 8.4 | 0.808 | 32.2B |
| CapitaRetail China Trust | 5.816 | 7.36 | 0.699 | 1.4B |
| DBS | 5.558 | 9.42 | 1.041 | 52.1B |
| Far East Hospitality Trust | 5.491 | 17.41 | 0.642 | 1.1B |
| Suntec Reit | 5.409 | 10.56 | 0.709 | 4.2B |
| OUE | 5.263 | 3.08 | 0.268 | 1B |
| OCBC Bank | 5.117 | 8.59 | 0.815 | 37.8B |
From the list, we can see the 3 local banks UOB, DBS and OCBC Bank offering attractive dividend yields of 5.876%, 5.558% and 5.117% respectively.
UOB, DBS Group and OCBC Bank are currently trading at S$19.40, S$20.51, S$8.58 respectively.
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.