It’s time to collect high dividend stocks… because in the past the SET index has fallen a lot. From several stressors, in particular, the yield on US government bonds (bond yields) rose above 5%, as well as tensions in the Middle East. Make the current valuation inexpensive and in an attractive investment area. Therefore, this is a good time to accumulate stocks that have a chance of gradually recovering. And provide high profits
Tesco Securities stated in its analysis that investing in the Thai stock market is that dividend yields are one of the charms of the Thai stock market. Because over the past few years Thai stock market dividend returns apart from beating inflation, of course, investing in the stock market is bound to provide higher returns than the bond market. To compensate for the higher risk of investing, considering the risks along with the upside of stock prices individually I believe investing in dividend stocks will still provide attractive returns for the next six months.
First: In the investment environment for Thai stocks, which faces a state of uncertainty due to tension in the Middle East and the risk of a global economic slowdown. Dividend stocks are a good answer to your investment needs.
Second: The Thai stock market has declined more than 16% since the beginning of this year (to date), which increases the opportunity to invest in dividend stocks. Because in the next few months (February-April next year) it will enter the season in which Thai companies pay annual dividends.
Third: From studying the movement of stocks that generate high profits using the SETHD TRI index, which represents the first 30 stocks with good fundamentals that generate high profits on the stock exchange. This includes returns from changes in stock prices and dividends. Compared to the movements of SET TRI, it is found that dividend stocks always give better returns than the overall market during the period from January to April every year, averaging approximately +2.5% and there is a possibility of it reaching 78%, so, we see the end of this year is The right time to collect dividends gradually.
In this regard, interesting dividend stocks were selected according to the following criteria.
1. Profit trends in the second half of the year remain strong and will continue to grow next year compared to the current year.
2. Have a strong financial position and stable cash flow
3. It has a history of paying good dividends in the past and an expectation of dividend returns for the rest of this year. This is done by deducting the interim dividend payment (residual return) that exceeds 4%.
4. The recommendation is ‘Buy’ at over 20% of fair value based on our fundamentals. To provide the opportunity to obtain good returns in terms of dividends and stock price differences.
By examining all 132 stocks within our analysis, the premium dividend stocks that meet our criteria for investing in AP, BAM, ICHI, SCB and TASCO are recommended.
By AP after the number of bookings fell in the third quarter, which was not impressive given the lower number of project launches. But we expect that in the fourth quarter we will be able to accelerate the recovery. With the number of launches doubling as a result, we expect AP to be able to maintain the same level of dividend payout with a yield of around 6% (expected dividend payment of 65 satang/share), which is the initial target of 15 baht.
Bank Al-Maghrib is preparing to expand its portfolio of non-performing loans and non-performing loans (NPLs) as supply accelerates. This should motivate Bank Al-Maghrib to improve earnings from 2024 to 2025 while the valuation is not expensive. With a high dividend yield of around 7% (expected dividend of 62 satang/share), the basic target is 16 baht.
ICHI’s operating results are likely to grow strongly, forecasting a 3-year CAGR of more than 27% per year on average, while executives are optimistic. This year’s revenue target has been revised to increase by more than 20% from the original 15% due to increased sales and contract production. While paying dividends it gives very good returns as well. This year the price reached 76 satang/share, equivalent to a rate of return of about 5%, and the basic target is 21.5 baht.
SCB Bank, although 3Q23 results were lower than expected due to card weakness. During the investment period, SCB Bank paid an interim dividend of 2.5 baht per share and expects to pay another 5.5 baht per share, representing a dividend yield of more than 5%. Basic target 130 baht.
TASCO’s trend is much better after the US. Temporarily lifting sanctions on Venezuela, this allows the company to import crude oil from Venezuela. Giving increasing returns from refining Estimated dividends for 2024-2025 rose by 20% and 2% respectively. It has already paid an interim dividend of 0.25 baht per share, and expects to pay another 1 baht per share, representing a residual dividend of about 6%. The primary target 25 baht.
Asia Plus Securities Given the fairly strong decline in the SET index, the upside compared to the year-end target set at 1,524 points is significant, making the suggested strategy a buy-and-hold through gradual purchase of stocks with good fundamentals overhang. For medium to long term investment it should do well and another type of stock may be suitable in this market situation. It should be a high dividend stock. Or on the other hand to avoid market fluctuations. It is recommended to have premium dividend stocks in your portfolio, which would help reduce the volatility of your portfolio.
Next, the research department searched for outstanding dividend stocks, one company per sector, that had made consistent payments over the past five years. The results were great dividend stocks worth accumulating, including:
SIRI expects a dividend yield of 9.55% in 2023-2024.
SAT expects a dividend yield of 8.38% in 2023-24.
TISCO expects a dividend yield of 8.29% in 2023 and 8.55% in 2024.
TASCO expects a dividend yield of 7.35% in 2023 and 6.47% in 2024.
TOP expects a dividend yield of 6.50% in 2023 and 6.09% in 2024.
PYLON expects a dividend yield of 6.24% in 2023 and 5.18% in 2024.
MAJOR expects the dividend yield to reach 5.32% in 2023 and 4.96% in 2024.
M expects the dividend yield to reach 3.84% in 2023 and 4.29% in 2024.
JMT expects a dividend yield of 3.75% in 2023 and 4.38% in 2024.
ADVANC expects a dividend yield of 3.66% in 2023 and 3.83% in 2024.
HMPRO expects a dividend yield of 3.26% in 2023 and 3.59% in 2024.
PTTGC expects a dividend yield of 3.01% in 2023 and 3.76% in 2024.
Pye Securities recommends 10 2023-2024 dividend stocks with high dividend yields between 4-11%, including:
KSL expects a dividend yield of 4.1% in 2023 and 4.2% in 2024.
NER expects a dividend yield of 7.1% in 2023 and 7.4% in 2024.
TU expects a dividend yield of 6.1% in 2023 and 5.2% in 2024.
AH expects the dividend yield to reach 4.8% in 2023 and 5.2% in 2024.
SAT expects a dividend yield of 8.1% in 2023 and 9.0% in 2024.
Stanley expects a dividend yield of 11.2% in 2023 and 5.6% in 2024.
KKP expects a dividend yield of 5.5% in 2023 and 6.1% in 2024.
SCB Bank expects a dividend yield of 6.1% in 2023 and 6.9% in 2024.
TCAP expects a dividend yield of 6.4% in 2023 and 6.8% in 2024.
TISCO expects a dividend yield of 7.9% in 2023 and 8.0% in 2024.
By InfoQuest News Agency (October 30, 2023)
Tags: SET, SET Index, ZoomIn, Dividend Stocks, Thai Stocks