Recently, I’ve sold off my Ezra and planned to move my money into a fundamentally safe stock to hold for a long time. I’ve been scanning through lots of stocks and I have a huge list with me. Once my target price is hit, I’ll make my move.
I believe right now is the best time to invest. We all can see that US Dow Jones is hitting record high. After government announced tapering plan for 2014, Mr Market welcomed it by allowing the market to shoot up.
However, what’s happening to the Singapore Market? Let’s have a look.
Singapore STI has not been performing as well as US or Japan market. In fact, it’s about 10% off the peak of 2013. If you look at the bright side, STI will correct itself soon, following the US market in the coming 2014. So right now, it’s a good time to invest in Singapore Market.
So which company to invest? Some of my criteria will be:
- Stable dividend – Giving dividends every year
- Low PE Ratio – Less than 10
- Low PTB – Less than 1
- 52-Weeks-Low Stock price – High chance of recovering
I’ve found a few good stocks, but decided to go with Keppel Land. Let’s have a look at Keppel Land’s performance.
From the chart above, you can see the past 5 years dividends of Keppel Land. It’s been rising consistently, except for 2013. I believe Keppel Land still has the potential of giving good dividends, and despite the drop this year, the yield is still pretty attractive at 3.6%.
Looking at the PTB – 0.8099, it’s way undervalued right now. I believe Keppel Land’s stock price is pushed down together with the REITs, and once the market tuned back to sync with US market, this stock will shoot up fast.
I decided to hold some Keppel Land stocks since the prices are quite attractive.
So what’s your take about Kepland? I’ll like to hear about it in the comments below.