Stock Beta and Projected Yield of some stocks – 7 February 2014

Analysts use beta of a stock to view its volatility in relation with benchmark index (STI). A higher beta means that stock is volatile and therefore a riskier asset. An investor with lower risk appetite may want to consider buying into low beta stock (ie closer to zero value for both positively correlated and negatively correlated stocks).

Investors may want to consider projected dividend yield (or projected yield) of a stock together with beta information to make a buy, hold or sell decision.

Table below shows share price (at 1.45 pm 7 February 2014), projected yield (%), stock beta, price earning ratio and price to book ratio of some stocks. This set of information was extracted from Morningstar Inc.

Price

Proj Yield

Beta

P/E

P/B

Singtel

3.51

4.83

0.66

15.55

2.42

StarHub

4.23

4.73

0.38

19.49

87.72

M1

3.32

4.21

0.26

19.23

8.62

Keppel Corp

10.40

3.88

1.21

10.53

1.48

SPH

3.98

3.79

0.49

15.41

1.56

OCBC

9.28

3.67

1.17

11.79

1.16

DBS

16.37

3.43

1.16

10.31

1.08

Comfort Delgro

1.93

3.39

0.52

15.58

1.50

UOB

19.95

3.06

1.19

10.56

1.22

SembCorp Ind

5.24

2.87

1.07

11.75

1.48

SIA

9.43

2.84

0.76

22.78

0.82

SGX

6.77

2.37

1.11

20.58

8.98

Cautionary note: This post is not advocating any specific investment decisions (hold, buy or sell decisions).

Copyright © 2014, 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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