Dividend stocks with Debt-to-Equity Ratio information

Some blue chip stocks were down substantially since last year. With that drop, dividend yield (in %) looks attractive for some stocks. (Reits are not subjects of this post.)

One investment strategy in this climate is to go for dividend stocks offering good dividend yields based on most recent annualised dividends.

When borrowing cost of company is going up as a consequence of US Fed raising interest rate, it makes sense to go for companies with lower debts where debt servicing does not seriously impact the company. Debt/Equity (D/E) ratio provides that kind of data.

Information for the table was extracted from SGX’s StockFacts. D/E (in %) is total debts divided by equity.

Counter Share Price @ 14.12.15 Div Yield % D/E %
Keppel Corp 6.22 7.50 66.79
M1 2.68 6.97 95.20
SembCorp Marine 1.67 6.92 90.00
StarHub 3.59 5.54 360.32
SembCorp Ind 2.98 5.26 74.87
Singtel 3.79 4.55 43.98
UOB 19.16 4.42
OCBC 8.54 4.17
SIA Engr 3.55 4.06 2.64
SGX 7.53 3.92
SPH 3.88 3.88 29.93
SingPost 1.70 3.85 16.32
SATS 3.81 3.66 7.12
DBS 16.32 3.65
ComfortDelgro 3.00 2.84 25.89
CapitaLand 3.12 2.83 66.90
SIA 10.96 2.47 10.67
UOL 5.98 2.45 34.31
SMRT 1.44 2.20 95.53
SBS Transit 1.895 1.42 158.31
City Development 7.03 1.12 56.57

One needs to strike a balance between Dividend Yield and D/E ratio. My threshold for D/E ratio is 50%, ie corporation borrows up to 50% of total shareholders’ funds. (Note: Debt financing is a complex matter and it cannot be simplified into just a number.)

Disclaimer: The author disclaimed liabilities on use of this post by readers for investment decisions. Use them with caution.

Copyright © 2015, 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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