Increased my stake in China Everbright Water (CEW)
The decision was simply due to my thinking that low interest rate environment will be here in the long run. Hence a good industry to invest in would be the utilities companies since they employ a large amount of leverage.
Closest Comparable
Was thinking between Sembcorp Industries and China Everbright who are the remaining 2 large utilities companies on SGX. Below were my comparison:
Debt Ratio: Post Demerger, Sembcorp Debt's ratio stands at 66%, while CEW was at 61%.
Dividend Yields: Sembcorp was paying around 5 cents per share, while CEW was paying 1.3 cents per share. At current share prices, SCI was yielding 3.7%, while CEW was 5.7%.
Payout ratio was about the same after stripping out Sembcorp Marine losses. What this meant was that CEW was a better yielding stock at same ratio. Book...