Tuesday, September 6, 2016

The Dividend Scorecard - An Extension of Enhanced Triple S Scorecard - Part 2

This is the follow up on the write up of the Search for Dividend Stocks and the write up on Part 1 of Dividend Scorecard Portion.




For this post, I will be explaining about how the Dividend Scorecard Portion was tested.

From a list of stocks that produces 5% dividend yield from 2012 to 2016, I only choose a small sample of 4 stocks that I believe will continue to TRY to produce a high dividend yield of 5% even up to this day.

I worked my way back to each stock’s 2014 financials – which will test whether the Dividend Scorecard Portion will have CORRECTLY PREDICTED that the particular stock will continue to produce a dividend yield of 5% in 2015.

1. Second Chance Properties Ltd

The company retail ready-made traditional Malay apparel through its 44 First Lady stores – three in Singapore and 41 in Malaysia. It also sells gold and jewellery through its Golden Chance Goldsmith store.

It also currently holds 57 properties – 56 in Singapore and one in Malaysia from which it obtains rental income. The company is also engaged in the business of securities investment.

How did its 2014 financials fare in the Dividend Scorecard Portion?
 


As per the screenshot above, the stock fail the Dividend Scorecard Portion. This meant that the Dividend Scorecard Portion has FAILED to predict the stock will continue to produce 5% dividend yield in 2015!

2. Design Studio Group Ltd


The company is engaged in the provision of interior fitting-out services to residential property projects, hospitality and commercial projects, and distribution of furniture products of reputable overseas brands..

How did its 2014 financials fare in the Dividend Scorecard Portion?
 

As per the screenshot above, the stock pass the Dividend Scorecard Portion. This meant that the Dividend Scorecard Portion has CORRECTLY predict the stock will continue to produce 5% dividend yield in 2015!

3. Telechoice International Ltd

The company operates in telecommunication industry and is a subsidiary of STT Communications Ltd. Its distributes prepaid cards; and manages concept stores and StarHub Platinum shops.

Its also offers enterprise IT infrastructure services, business solutions and integration services and many of the IT services for the consumer and enterprise markets.

Finally, it also designs, builds, and manages telecommunication networks; and provides a suite of products and solutions to address the network infrastructure needs of fixed and mobile operators.

How did its 2014 financials fare in the Dividend Scorecard Portion?

 

As per the screenshot above, the stock fail the Dividend Scorecard Portion. This meant that the Dividend Scorecard Portion has FAILED to predict the stock will continue to produce 5% dividend yield in 2015 again!

4. UMS Holdings Ltd


The company is a high precision manufacturer with a long history in Singapore. It manufactures high precision semiconductor components as well as other equipment for the electronic, machine tools, aerospace, and oil & gas industries.

How did its 2014 financials fare in the Dividend Scorecard Portion? 



As per the screenshot above, the stock pass the Dividend Scorecard Portion. This meant that the Dividend Scorecard Portion has CORRECTLY predict the stock will continue to produce 5% dividend yield in 2015!

THE SCORE is 2 vs 2 – It just passed! Then it’s not as good as it’s supposed to be? – To determine further if this Dividend Scorecard Portion is “good”, other than just predicting a 1-dimension factor of whether the stock is able to produce 5% dividend yield, I believe we should also look at the secondary factor which is the SHARE PRICE!

Therefore let's review the share price of Second Chance Properties Ltd and Telechoice International Ltd.

1. Second Chance Properties Ltd

If you look at the graph, you can see that the stock had peaked during its 2014 to 2015 period. Then it has been going downhill after that.

Even with the high dividend yield, people who bought during the peak in 2014 ma still have yet to breakeven!

Thus, I deem as Dividend Scorecard Portion making the CORRECT decision!

2. Telechoice International Ltd


As per the stock's graph, it seems that the current share price is definitely higher than the share price between 2014 to 2015. However, there seem to be a dip in share prices at the end of 2015.

In order to gain from this stock, you must be able to endure through the down prices during the end of 2015.

Nevertheless, it seems that Dividend Scorecard Portion FAILED to really predict correctly here.

To summarize, the Dividend Scorecard Portion of the Enhanced Triple S Scorecard predicted correctly 3 out of 4 times.

Although the Dividend Scorecard Portion did not predict all the decision correctly, but I believe it is a competent add-on to the Enhanced Triple S Scorecard.

This can be further proved by the revelation of the share prices for Design Studio Group Ltd and UMS Holdings Ltd:

Design Studio Group Ltd - Share prices has been rising since 2014.


 

UMS Holdings Ltd  - Share prices seem to have dropped from the peak in 2014. But if you dig deeper, the drop in the share prices was due to a bonus issue of 1 for every 4 shares. Thus, if you stay vested till today, you will have definitely gain for this stock.




In Short

Finally, as stated, I believe this is a competent add-on to the Enhanced Triple S Scorecard and it has offer another aspect of a value stock to the user. If the stock is deem as "not a value stock", user can still buy it as a dividend stock with limited downside. 

On top of that, if the stock passes the Enhanced Triple S Scorecard and the Dividend Scorecard Portion, this will mean that the user will be buying a value stock that gives out high dividend! 

What's there not to be happy about!?


For the next few posts, I will be writing about individual posts on "usual suspects" that provides high dividend as previously requested by readers, B and eeming.

For those who are interested to find out more about Enhanced Triple S Scorecard and its Dividend Scorecard Portion, you can come to my 3rd Sharing Session with T.U.B! I will be sharing how to use and input data into my Enhanced Triple S Scorecard and its Dividend Scorecard Portion with the participants of the 3rd Sharing Session. In addition, only participants of the 3rd Sharing Session will have the Enhanced Triple S Scorecard with the Dividend Scorecard Portion. If you are interested to attend, do not hesitate to contact me directly.

Oh... and do remember, please like our Facebook page - T.U.B Investing.

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