Dividend Yield based on cost of investment

When share prices are declining, the market value of share portfolio will decline as a result. Since shares were bought at higher costs before, I would like to know how the actual dividend yield is like for each counter against my cost of investment. Is this dividend yield something I can accept?

From the latest financial results for some companies with December 2015 year-end, the total dividends for 2015 were extracted. My average cost of investment is included as the next column. Dividend yield is computed for each counter.

Counter Dividend ($) Avg cost ($) Div Yield (%)
StarHub 0.20 4.23 4.73%
UOB 0.90 19.99 4.50%
M1 0.153 3.68 4.16%
OCBC 0.36 10.33 3.48%
Keppel Corp 0.34 9.86 3.45%
DBS 0.60 18.06 3.32%
SembCorp Ind 0.11 5.10 2.16%
SembCorp Marine 0.06 3.34 1.80%
Comfort Delgro 0.05 2.93 1.71%
       
Overall 2.77 77.52 3.58%

Despite lower dividends in 2015 when compared with 2014, the dividend yields seem reasonable. The overall dividend yield was 3.58% per annum. This is not bad for investing and holding on to these counters.

Going forward, we are not certain whether the total dividends will be sustained in 2016. In the similar vein, we will not know how the share prices will move in 2016. The dividend yield computed above is historical and is just one metric in our decision model of investment.

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

Copyright © 2016, 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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One Response to Dividend Yield based on cost of investment

  1. Andy Koh says:

    Dear Mr Lim,

    I am holding 5 of those on ur list so we are in the same sampan. I guess the dividend will help cushion some pain.

    Will you please consider posting updates when you enter the market to purchase more or other new counters? Thank you.

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