Author: SGXcafe

Growing Dividends – Does Debt-to-equity Ratio and Operating Cashflow Matter? (Part 2)

In the previous article, I looked at how Debt-to-equity and Operating Cashflow (referred to as DER and OC from hereon) would influence Dividend Per Share (DPS). In particular, I looked at see how change of DER and change of OC in year X influences the DPS in year X+1. In this article, I would like to focus on the how absolute DER and absolute OC in year X could be a predictor of DPS in year X+1. Methodology For chi-square test, discrete data is required. In the previous article, I simply chose zero as the splitting point, which was...

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Growing Dividends – Does Debt-to-equity Ratio and Operating Cashflow Matter?

I believe there are many investors like me who love to invest in companies that pay dividends. Naturally, we hope that companies we invest in would have growing dividends. So, the question is “How can we differentiate companies that will have growing dividends from others?”In an attempt to find an answer to this question, I will perform a series of analyses in this and upcoming articles. Today, I will focus on two metrics that are commonly thought to be useful in forecasting if a company is capable of distributing the same or higher dividends in future. They are Debt-to-equity...

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The John Neff Screener

I regularly read articles from “The Motley Fool Singapore”. One person that is frequently mentioned there is John Neff. “John Neff (born 1931) is one of the best known mutual fund investors of the past 40 years, notable for his contrarian and value investing styles as well as heading Vanguard’s Windsor Fund. Windsor was the best performing mutual fund during his tenure and became the largest fund closing to new investors in the 1980s. Neff retired from Vanguard in 1995. During Neff’s 31 years, from 1964 to 1995, Windsor returned 13.7% annually versus 10.6% for the S&P 500.” –...

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Facebook for Investor

We all have a limited amount of time. Are you spending that time wisely? And are you spending more time than you should be scrolling through Facebook? I am :( In an attempt to change that, I thought that if I’m going to scroll through something on my phone, I might as well be scrolling through information on companies that I have invested or are about to invest in. Hence, over the weekend, I added a new feature in SGXcafe that mimics social networks’ popular feed system. However, instead of populating it with cat videos, It will be populated...

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A Simple Trend Analysis of Dividends – Part 2

Previously, I wrote an article about some simple analysis I did of companies listed in SGX that pays dividends. The main conclusion of that article was as follows: 1) If a company is giving out dividends this year, the chance that it would give out same or more dividends (absolute amount per share) next year was 60%. 2) If a company is giving out dividends this year, the chance that it would give out at least 50% or more dividends (absolute amount per share) next year was 80%. In this article, I wanted to see if certain attributes of...

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Becoming an Angel Investor

Last week, when I shared my portfolio in another article. I received comments privately from several people such as “50 stocks in your portfolio?!?! I think 30 should provide more than enough diversification”, “Have you heard of Warren Buffet’s 20 slot rules?”, “Why are you holding so many different stocks?” etc. Well, there are a few reasons to this. 1) I have yet to devise or find a sound approach on deciding when to sell and what to sell. Thus I am currently only buying and not selling yet. I am working on it though. 2) The academic in...

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Review of My First Year Investing in SGX

Although 2015 is not my first year investing in the stock market, it is my first time investing in the Singapore market. Previously, I was focusing on the US market mainly due to two reasons:1) The minimum to invest in many of the Singapore companies was relatively high (compared to the US) due to the minimum purchase of 1000 shares. I was a poor student then hence this was a fairly big deterrent. However, this is no longer true as the minimum number of shares has been revised to only 100 since January 2015. 2) I could not easily...

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Analyze and Compare Stocks (using SGXcafe)

Analyze Every investor has his/her favorite set of metrics that they look at when performing stock analysis and valuation. Therefore, it is difficult to decide which metric to display in SGXcafe, hence most of the time, I simply choose to display information that I am personally interested in. But I want to make SGXcafe more customizable so that it can provide better value to everyone. Incidentally, a recently-added feature, iScreener, can help solve this problem. I have tweaked it such that if you use iScreener to create a profile of metrics that you are interested in, whenever you visit...

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Did You Beat the Market in 2015? I Did Not.

As 2015 is coming to an end, I am interested to see how well I did, especially since this is the first year where I had sufficient surplus to invest seriously in the stock market. I am especially interested to know how well I fared against a form of benchmark. In a previous article, I suggested that an easy and good way for anyone to start investing is via ES3, an Index ETF tracking STI. The truth is, while I did buy some ES3, I also bought many other stocks as part of my portfolio because I thought that...

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Keeping an Investment Journal (in SGXcafe)

  Sometimes, I think I have an investing addiction. Just like people with a shopping addiction who feel compelled to go shopping whenever they have the time or money, likewise, I feel compelled to read up on stocks whenever I have the time (which was why I built SGXcafe to gather as much useful information as I can find for my ease of reading) and buy them whenever I have the money. However, I face a problem. As I am someone who does not have a good memory, I often forget opinions/conclusions I form about stocks after reading up...

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What to buy next? – Part 2

  There exists hundreds of stocks in SGX and deciding what to buy next is not an easy task. In part one of the “What to buy next?” article, I shared a few tools in SGXcafe designed to help me with this problem, including a new screener tool, iScreener added to SGXcafe about 3 weeks ago. iScreener was met with very positive response and high usage, and I received comments on how useful it was and requests to add more metrics. Therefore, I decided to spend more time improving it and have since doubled the number of metrics available...

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Trapped in Chennai, India

On a recent business trip to India, I was stranded in Chennai because of massive flooding everywhere, including the airport, due to the worst rains the city has seen in the recent century. I shall skip the details of who, what, when, where, why and how I was trapped and escaped, but focus instead on what I felt during my time there. The Rich vs The Poor It was Day 3 since the heavy flooding started. I could see helicopters distributing food and water supplies both via the television and more acutely, from the window where I was staying....

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What to buy next?

“What to buy next?” Almost every month, I ask myself this same question whenever my salary arrives or when a good amount of dividends have accumulated. When I first started investing, I wanted a diversified portfolio which is why I built the tool, iSuggest (iSuggest is free for all registered users). It worked well at first, as it quickly brought my portfolio risk down to a minimum. However, for those who are familiar with the modern portfolio theory, there is a limit to how much risk you can eliminate by diversifying. Soon, it appeared any stock I bought would...

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Bull or Bear?

“No price is too high for a bull or too low for a bear” – an old Wall Street proverb It is a known fact that investors can be over-optimistic or over-pessimistic at times. When a series of good news happens, investors switch into the optimistic mode, often over-optimistic, and significantly bid up the price of a stock ditching any rational pricing theory whatsoever. Any high price will be justified by reasons like “profit will continue to grow” or even worse, “the price will simply continue to rise”. Conversely, when a series of bad news happens, investors will go...

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How to retire?

Many people that I know invest not to be rich, but simply hoping to be able to retire one day. Likewise, my main goal of investment is to retire. Naturally, I am curious to know how I will be able to retire. More specifically, how much do I need to invest annually? What rate of return do I need? When I can retire? To answer these questions, I decided to build a simple simulator. Basically, it assumes that to retire, I need a passive income which comes from the dividends of my investments, and that I will invest some...

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