The Weekly Nibble: A 2018 Review
- Original Post from The Motley Fool Sg

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week.


2018’s Top 5 Performing Blue-Chips


The year is drawing to a close, and it’s time for a review of the stock market.


In this article, Chin Hui Leong and Esjay jointly looked at the top five performing Straits Times Index (SGX: ^STI) components. The best performing of all, Dairy Farm International Holdings Ltd (SGX: D01), delivered a return of 14.8% from the start of 2018 till the end of November. Do jump into the article to find out which are the other best performers of the index.


3 Companies Which Managed To Weather A Tough 2018


2018 was not an easy year for stock market investors. From its peak in May 2018, the Straits Times Index has fallen some 14% up till Thursday this week.


Even amid the turbulent times, some companies have managed to weather the storms. Chin and Royston Yang jointly investigate three such companies in their article.


2018’s Top 5 Worst Performing Blue-Chips


Earlier, we looked at the top five performing blue-chip shares. Here, we have some of the worst performing blue-chips. The worst performer of all, Golden Agri-Resources Ltd (SGX: E5H), saw its share price being cut by around 34%. You can check out the other worst performers from the article.


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The Week Ahead: Jardine C&C, Hongkong Land and Dairy Farm
- Original Post from The Motley Fool Sg

A raft of Jardine companies are pencilled in for results next week. Jardine Cycle & Carriage (SGX: C07) said in November that underlying profit rose 21% thanks to better performance at its Astra unit. Revenue was up 10%.


Hongkong Land (SGX: H78) said in November that it’s financial position remains strong. It added that it saw positive rental reversion in its Central office portfolio as market supply remained tight.


On the food front, Dairy Farm International (SGX: D01) expects full-year results to be impacted by increasing costs from its continuing programme of investment in technology, supply-chain infrastructure, stores and people. It also warned of weakening margins from increased rents.


There are also results from conglomeratesJardine Strategic (SGX: J37) and Jardine Matheson (SGX: J36).


UOL Group (SGX: U14) said that the cooling measures introduced in July had affected sentiment in the Singapore residential market. But office rents could be on the uptrend given strong demand and limited supply.


Softer crude palm oil prices affected performance at Golden Agri-Resources (SGX: E5H) last time. The farmer posted a net loss for the third quarter, even though revenues rose 3.2%.


On the economic front, the deadline for the US and China to reach an agreement over trade will expire on 1 March. There could be an extension of 60 days according to The White House, though. There is also a one-to-one meeting between Trump and Kim Jong Un in Hanoi on 27 February and 28 February.


The US will also report its economic growth rate for the final quarter of 2018. It could have slowed from 3.4% in the third quarter to 2.5%.


And finally, the core inflation rate in Singapore is expected to be unchanged at 1.9%, while the annual inflation rate in January could have risen slightly to 0.7%.


The Motley Fool’s purpose is to help the world invest, better. Click here nowfor your FREE subscription to Take Stock - Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock - Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


Like us on Facebook to keep up to date with our latest news and articles. The Motley Fool’s purpose is to help the world invest, better.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo owns shares in Jardine C&C, Hongkong Land, Dairy Farm, Jardine Strategic and Jardine Matheson.


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The Weekly Nibble: Best Dividend Shares
- Original Post from The Motley Fool Sg

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week.


Singapore’s Top 5 Dividend Shares Among the World’s Best


Do you like income stocks?


In this article, I looked at the top five Singapore-listed companies that are part of the FTSE All-World High Dividend Yield Index sporting the highest dividend yields. The FTSE All-World High Dividend Yield Index contains 1,389 globally-listed shares that have a higher-than-average dividend yield. The index does not include real estate investment trusts (REITs) and stocks that are forecast to pay no dividend over the next 12 months.


Companies discussed in the article include Hutchison Port Holdings Trust (SGX: NS8U), StarHub Ltd (SGX: CC3), Singapore Telecommunications Limited (SGX: Z74), M1 Ltd (SGX: B2F) and Venture Corporation Ltd (SGX: V03).


2 Singapore REITs I Am Watching This Week


My Foolish colleague, Jeremy Chia, touched on why he kept a lookout for two REITs – Keppel DC REIT (SGX: AJBU) and CapitaLand Mall Trust (SGX: C38U) – when they released their earnings during the week.


Keppel DC REIT released its earnings on 22 January while CapitaLand Mall Trust announced its financial results on 23 January.


3 Singapore Blue Chips That Have More Than Doubled Their Profits In The Last Decade


In this piece, Lawrence Nga explored a total of three Straits Times Index (SGX: ^STI) stocks that have more than doubled their profits in the last 10 years. Do jump into the article to know what the companies are.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


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1 Risk That Dividend Investors Should Know Before Investing In SATS Ltd Now
- Original Post from The Motley Fool Sg

SATS Ltd (SGX: S58) is a company with two business segments: Food Solutions and Gateway Services. The Food Solutions segment covers airline catering, food distribution, and industrial catering whereas the Gateway Solutions segment is involved in ground handling services of passengers, flights, and cargo.


In a previous article, I highlighted a number of reasons why SATS might be a good share for dividend investors to own for the long term. As a quick recap, those reasons were:



  1. SATS has a solid financial track record

  2. It has a growing dividend

  3. The balance sheet is strong


But, all companies come with risk and there is one risk with SATS that investors should take into account as well before deciding whether they should be investing in the company right now.


The risk: A high valuation


As investors, we should always invest in a share at a price that’s less than its value. This applies not only to value investors, but also to dividend investors.In simple terms, that means we should be paying less than a dollar for each dollar of assets.


One way to gauge SATS’s valuation is to compare its price-to-earnings (PE) and price-to-book (PB) ratios with those of the market. I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market barometer, theStraits Times Index (SGX: ^STI).


SATS’s share price is at S$4.77 currently, which gives the company PE and PB ratios of 20.5 and 3.3, respectively. These are significantly higher than the SPDR STI ETF’s selfsame ratios of 11.5 and 1.1.


On one hand, it is clear that SATS exhibits some positive traits (its good track record of growth, history of growing its dividend, and strong balance sheet). On the other hand, investors need to consider whether these traits will be sustainable in the long run; it’s a crucial consideration given the company’s high valuation right now.


Conclusion


There are many things to like about SATS as a dividend stock for the long-term. But, investors need to consider whether its current high valuation (as compared to the market average) is justifiable.


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1 Risk That Dividend Investors Should Know Before Investing In SATS Ltd Now
- Original Post from The Motley Fool Sg

SATS Ltd (SGX: S58) is a company with two business segments: Food Solutions and Gateway Services. The Food Solutions segment covers airline catering, food distribution, and industrial catering whereas the Gateway Solutions segment is involved in ground handling services of passengers, flights, and cargo.


In a previous article, I highlighted a number of reasons why SATS might be a good share for dividend investors to own for the long term. As a quick recap, those reasons were:



  1. SATS has a solid financial track record

  2. It has a growing dividend

  3. The balance sheet is strong


But, all companies come with risk and there is one risk with SATS that investors should take into account as well before deciding whether they should be investing in the company right now.


The risk: A high valuation


As investors, we should always invest in a share at a price that’s less than its value. This applies not only to value investors, but also to dividend investors.In simple terms, that means we should be paying less than a dollar for each dollar of assets.


One way to gauge SATS’s valuation is to compare its price-to-earnings (PE) and price-to-book (PB) ratios with those of the market. I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market barometer, theStraits Times Index (SGX: ^STI).


SATS’s share price is at S$4.77 currently, which gives the company PE and PB ratios of 20.5 and 3.3, respectively. These are significantly higher than the SPDR STI ETF’s selfsame ratios of 11.5 and 1.1.


On one hand, it is clear that SATS exhibits some positive traits (its good track record of growth, history of growing its dividend, and strong balance sheet). On the other hand, investors need to consider whether these traits will be sustainable in the long run; it’s a crucial consideration given the company’s high valuation right now.


Conclusion


There are many things to like about SATS as a dividend stock for the long-term. But, investors need to consider whether its current high valuation (as compared to the market average) is justifiable.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned. The Motley Fool Singapore has a recommendation for SATS Ltd.


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5 Things Investors Should Know About Thai Beverage Public Company Limited Before Buying Its Shares
- Original Post from The Motley Fool Sg

Over the last 12 months, Thai Beverage Public Company Limited‘s (SGX: Y92) share price has fallen by 21% to S$0.735 currently. The decline may cause some investors to be interested in buying shares of the company. If you happen to be in this group, I shared in a previous article three things you should know about Thai Beverage before you buy its shares. In this article, I want to discuss two more aspects about the company’s business.


Before I dive into it, here’s a quick description of Thai Beverage’s business for context later: The company operates predominantly in Thailand, and has four different business segments, namely, Spirits, Beer, Food, and Non-Alcoholic Beverages; it’s worth noting too that Thai Beverage changed its financial year end from 31 December to 30 September in 2016.


3 things to know


The three things I shared about Thai Beverage in my previous article mentioned earlier were its financial track record, its recent challenges, and its return on invested capital. I found that Thai Beverage has a patchy track record (its revenue had grown in recent years, but its profit had fallen); all its business segments, with the exception of Food, experienced weakness in the latest financial year; and it managed to generate a solid return on invested capital of 26.5% in its financial year ended 30 September 2018 (FY2018).


4th thing to know: Dividend track record


When studying a company, it is important to see if it has a history of paying a consistent or growing dividend over a long period of time.


In the case of Thai Beverage, it grew its dividend by 11.1% per year from THB 0.44 per share in 2013 to THB 0.67 per share in FY2017. But in FY2018, the company reduced its dividend to THB 0.39 per share because of a decline in profit. Clearly, the recent reduction in Thai Beverage’s dividend is undesirable. Going forward, Thai Beverage’s dividend will likely correlate to its profit (it has a policy to pay at least 50% its net profit as a dividend).


5th thing to know: Valuation


The final thing that investors should consider before investing in Thai Beverage is its valuation.


At Thai Beverage’s share price of S$0.735 currently, the company has a price-to-book (PB) ratio, price-to-earnings (PE) ratio and dividend yield of 3.6, 23.6, and 2.3%, respectively. In comparison, the selfsame valuation numbers for the Singapore market are 1.1, 11.5, and 3.49%. I’m using theSPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI).


It’s clear that Thai Beverage is valued at a premium to the market because of its higher PB and PE ratios, and inferior dividend yield.


A Foolish conclusion


It’s never easy when it comes to making an investment decision since we must look into many different areas of a company.In the case of Thai Beverage, it has a patchy track record of growth in its financials and dividend, and it has been facing some tough challenges in FY2018. Moreover, Thai Beverage’s shares currently have valuations that are more expensive than the market. The saving grace here is that the company managed to generate a solid ROIC of 26.5% in FY2018, which is commendable.


I hope the five things I’ve covered about Thai Beverage’s business fundamentals can help you make a more informed investing decision when it comes to its shares.


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