High Dividend yield and Low Price-to-Book ratio – Update

On 28 January 2012, I wrote a piece on high dividend yield with low price-to-book post. There was a surge in a number of views on this post recently. In the New Year, I look again at these parameters for some big-cap stocks in the STI and selective stocks in mid-cap range.

Information gathered is based on latest available reporting year of 2011 or 2012 for these stocks.

The stocks are ranked by high dividend yield but with low Price to Book ratio (PTB). Higher dividend yield is better and lower Price to Book ratio is better, other things being equal.

Stock Name

Div Yield (%)

Price-

to-Book

Div/ PTB

Share Price

KepLand

4.963

1.148

4.32

4.03

DBS

3.789

1.264

3.00

14.78

GoldenAgr

2.252

0.884

2.55

0.675

Olam

2.572

1.115

2.31

1.555

SingTel

4.788

2.246

2.13

3.30

UOB

3.029

1.513

2.00

19.81

SBSTransit 500

2.776

1.391

2.00

1.495

OCBC Bk

3.186

1.619

1.97

9.73

Hyflux

2.188

1.199

1.82

1.28

SATS

3.806

2.13

1.79

2.89

ComfortDelGro

3.473

1.984

1.75

1.785

SingPost

5.435

3.368

1.61

1.15

Kep Corp

4.00

2.677

1.49

11.00

SIA

1.488

1.00

1.49

10.75

Capitaland

1.596

1.078

1.48

3.76

SPH

3.97

2.87

1.38

4.03

Noble Grp

1.802

1.346

1.34

1.155

SMRT

4.273

3.238

1.32

1.685

SIA Engg

5.011

3.861

1.30

4.39

SembCorp Ind

2.857

2.281

1.25

5.25

GreatEast Life

2.363

1.895

1.25

15.66

Wilmar

1.527

1.31

1.17

3.34

(Source of data: generated from DBS Vickers Clarity, dated 2 January 2013)

All above stocks have “Dividend yield divided by PTB” ratio of more than 1.0. Investors can focus on past dividend payout (dividend yield) or focus on historical Price-to-Book ratio for investment decisions. They can combine both indicators and get a composite ratio for decision making too. A word of caution, historical performance may not be replicated in the future. Business environment can affect specific companies in different ways. More research (beyond the above ratios) into specific company is required before investing in the stock.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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