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Stocks Strategy for the Lazy Souls
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The ETF trades like a normal stock on the SGX.. YOU can buy it like any stock through your broker.
My broker shows it as
|
STI ETF 100 (SES) Stock code (S67 ) |
The relevant intrinsic value is
|
STI ETF 100 IOPV (SES) Stock code (S87 ) |
So you can buy and sell the s67 which is the ETF , the present value of all the stocks the etf holds (NAV) is published as a pseudo stock the (s87) the ETF IOPV .
Today the ETf is trading at 28.9 while its NAV is 29.0 - not much difference. At a dividend yeild of around 3.5 i dont think the STI is overvalued or undervalued. A good time to buy and hold for the next ten years if you are happy with the expected 10% annualised returns with 20% ups and downs in the meanwhile.
That was an enlightening post! How do you buy into ETF?
Thanks!
From the SGX site i saw the performance of the street tracks etf.
So around 11% over the next business cycle is what you should expect.
I think the outperformance of the ETF over the index is simply because of dividend reinvestment. The index seems to ignore the dividends paid by the companies in the index. Assuming the div yeild is around 3-4% the higher returns for the the ETF seem about right.
So to summarise , I really have no idea where the ETF will go next year , but from this boom to the next similar point in the business cycle maybe 10 years from now I feel it should give 11% or so. So in your retirement account if you have 10 years to retire you may hold this instead of fixed deposits.
I follow a simple high ROE high div yeild, low debt strategy.
My stocks are selected on simple numerical criterion.
I feel that the high dividend yeild and low debt (exception made for banks) strategy offers me some protection from downside.
Dividends are always reinvested into the stocks that paid them. I track total returns instaed of only price changes.
my present holdings are
Street tracks STI etf - to track the rest of my portfolio against
Sinwa
Second chance
Bright world precision
Thats all, I intend to own 10 stocks and review them once a year.
You can find my day to day musings and watch list on
http://finance.groups.yahoo.com/group/singaporelongtermequity/
Hi Cashiertan,
What are your thoughts about STI ETF?
Thanks Cashiertan!
below attached are co. of STI and co. which has the largest cap paying dividend of 3% or more per yr.
u can choose either of the 2 charts to make ur selection for yor 3-10 counters to buy and hold. remeber not to get counters of same industry.
just browsing thru,
i would select:
ST Engrg
SIA Engrg
SPC
|
23 |
CRB.SG |
CEREBOS PACIFIC LTD |
SGD 1007.860 |
8.35 |
|
24 |
SBS.SG |
SBS TRANSIT LTD |
SGD 1034.720 |
8.62 |
|
25 |
DGC.SG |
DELGRO CORPORATION LTD |
SGD 1050.091 |
3.20 |
|
26 |
JAYS.SG |
JAYA HOLDINGS LTD |
SGD 1086.800 |
3.85 |
|
27 |
STR.SG |
STRAITS TRADING COMPANY LTD |
SGD 1140.480 |
8.13 |
|
28 |
STX.SG |
STX PAN OCEAN CO LTD |
SGD 1483.89 |
9.54 |
|
29 |
HLF.SG |
HONG LEONG FINANCE LIMITED |
SGD 1519.000 |
4.86 |
|
30 |
GCL.SG |
GUOCOLAND LIMITED |
SGD 1622.600 |
3.28 |
|
31 |
SMT.SG |
SMRT CORPORATION LTD |
SGD 1846.880 |
4.91 |
|
32 |
ALG.SG |
ALLGREEN PROPERTIES |
SGD 1905.930 |
3.31 |
|
33 |
TPV.SG |
TPV TECHNOLOGY LIMITED |
SGD 1919.580 |
4.25 |
|
34 |
MBOS.SG |
MOBILEONE LIMITED |
SGD 2050.290 |
9.71 |
|
35 |
SPC.SG |
SPORE PETROLEUM COMPANY LTD |
SGD 2188.720 |
7.34 |
|
36 |
BLIS.SG |
BIL INTERNATIONAL LIMITED |
SGD 2188.896 |
3.68 |
|
37 |
VMS.SG |
VENTURE CORPORATION LIMITED |
SGD 3807.000 |
3.55 |
|
38 |
SIE.SG |
SIA ENGINEERING COMPANY |
SGD 6367.080 |
6.70 |
|
39 |
SPHS.SG |
SPORE PRESS HOLDINGS LTD |
SGD 6837.000 |
3.95 |
|
40 |
STN.SG |
ST ENGINEERING LTD |
SGD 8987.440 |
4.42 |
|
41 |
SGT.SG |
SPORE TELECOMMUNICATIONS LTD |
SGD 49628.700 |
3.37 |
Symbol |
Name |
Last Trade |
Change |
Volume |
| 600.SI |
Hyflux |
2.47 Nov 24 |
 0.02 (0.82%) |
345,000 |
| A16.SI |
Allgreen |
1.78 Nov 24 |
 0.03 (1.66%) |
1,099,000 |
| A17U.SI |
Ascendasreit |
2.34 Nov 24 |
0.04 (1.68%) |
N/A |
| B16.SI |
BIL Intl |
1.62 Nov 24 |
0.02 (1.25%) |
63,000 |
| C07.SI |
Jardine C&C |
13.30 Nov 24 |
0.70 (5.00%) |
121,000 |
| C09.SI |
CITYDEV |
12.30 Nov 24 |
0.30 (2.38%) |
1,562,000 |
| C27.SI |
Chartered |
1.32 Nov 24 |
0.02 (1.49%) |
15,084,000 |
| C31.SI |
Capitaland |
5.85 Nov 24 |
0.15 (2.50%) |
2,945,000 |
| C38U.SI |
CapitaMall |
2.67 Nov 24 |
0.04 (1.48%) |
N/A |
| C52.SI |
ComfortDelGro |
1.58 Nov 24 |
0.01 (0.64%) |
4,311,000 |
| C76.SI |
Creative 50 |
10.20 Nov 24 |
0.10 (0.97%) |
55,950 |
| D01.SI |
DairyFarm 900 US$ |
3.08 Nov 23 |
0.00 (0.00%) |
24,300 |
| D05.SI |
DBS |
20.50 Nov 24 |
0.20 (0.97%) |
2,156,000 |
| D06.SI |
DatacrftUS$ |
1.18 Nov 24 |
0.03 (2.48%) |
896,000 |
| G01.SI |
GES |
1.25 Nov 17 |
0.00 (0.00%) |
1,153,000 |
| H02.SI |
Haw Par |
7.10 Nov 24 |
0.20 (2.74%) |
25,000 |
| H78.SI |
HKLand US$ |
3.72 Nov 24 |
0.02 (0.54%) |
5,128,000 |
| J09.SI |
JurTech |
1.16 Nov 24 |
0.03 (2.65%) |
2,380,000 |
| J36.SI |
JMH 400US$ |
19.60 Nov 24 |
0.40 (2.00%) |
155,600 |
| J37.SI |
JSH 500US$ |
11.70 Nov 24 |
0.10 (0.85%) |
64,000 |
| K02.SI |
KepCorp |
16.80 Nov 24 |
0.20 (1.18%) |
2,630,000 |
| K17.SI |
KepLand |
6.55 Nov 24 |
0.25 (3.68%) |
3,022,000 |
| N03.SI |
NOL |
1.99 Nov 24 |
0.02 (1.00%) |
1,283,000 |
| N21.SI |
Noble Grp |
1.04 Nov 24 |
0.02 (1.89%) |
2,521,000 |
| P05.SI |
PFood |
1.13 Nov 24 |
0.02 (1.74%) |
160,000 |
| P27.SI |
Parkway |
2.95 Nov 24 |
0.00 (0.00%) |
761,000 |
| S08.SI |
SingPost |
1.09 Nov 24 |
0.02 (1.87%) |
9,740,000 |
| S24.SI |
STATSChP |
1.14 Nov 24 |
0.02 (1.72%) |
6,033,000 |
| S51.SI |
SembMar |
3.26 Nov 24 |
0.00 (0.00%) |
893,000 |
| S55.SI |
SIA |
15.50 Nov 24 |
0.50 (3.12%) |
1,558,000 |
| S63.SI |
ST Engg |
3.06 Nov 24 |
0.02 (0.65%) |
7,971,000 |
| S68.SI |
SGX |
5.45 Nov 24 |
0.05 (0.91%) |
1,624,000 |
| S99.SI |
SPC |
4.42 Nov 24 |
0.06 (1.38%) |
1,293,000 |
| T18.SI |
TPV |
1.06 Nov 24 |
0.01 (0.93%) |
543,000 |
| T39.SI |
SPH |
4.28 Nov 24 |
0.02 (0.47%) |
4,681,000 |
| T48.SI |
Sing Tel |
2.51 Aug 29 |
0.00 (0.00%) |
31,864,000 |
| T54.SI |
StarHub |
2.41 Aug 31 |
0.00 (0.00%) |
2,800,000 |
| U11.SI |
UOB |
18.90 Nov 24 |
0.20 (1.07%) |
3,889,000 |
| U12.SI |
UTAC |
0.73 Nov 24 |
0.01 (1.35%) |
12,560,000 |
| U14.SI |
UOL |
4.60 Nov 24 |
0.02 (0.43%) |
2,009,000 |
| V03.SI |
Venture |
13.80 Nov 24 |
0.30 (2.13%) |
766,000 |
| W05.SI |
Wing Tai |
2.04 Nov 24 |
0.02 (0.97%) |
1,833,000 |
| W08.SI |
Want WantUS$ |
1.50 Nov 24 |
0.03 (1.96%) |
518,000 |
find the component stocks of STI via SGX, than, use the sharejunction dividend stocks list to find the highest yield dividend paying bluechips of STI.
Hi Cashiertan,
Can you share where can i get the list of the shares that make up the STI? :)
Good post, Cashiertan!
thanks for the article... excellent stuff.
http://www.fool.com/news/commentary/2006/commentary06112109.htm?source=ifwflwlnk0000003
It Pays to be Lazy...
The Abv mentioned strategy would work even better u if enter at Bottom of a Bear Market.
IF $ is concerned, just buy the top 3 or 5 biggest dividend paying (in term of % yield) co. among the TOp 20 co. in STI. but make sure to spread your $ equally among the 3 or 5 counters. Example. If u got 30k, each counter would be 10 or 6k each.
