I am not really into comeback/recovery stocks. However, I reckon this month will probably be the month whereby I think more into some of these recovery stocks. 2 of these being in my dividend portfolio, namely CapitaLand Ascott Trust (SGX: HMN) and Straco Corporation Ltd (SGX: S85).
These ‘recovery’ stocks are not new, and I have been occasionally adding to my positions in these 2 stocks. Nevertheless, their growth stories in recent months have gotten better with the world in general recovering from the past pandemic. In short, their stories just keep getting better.
CapitaLand Ascott Trust
On 29 January 2024, in its 2H / FY 2023 Financial Results update, the following was reported:
- 1) DPS increased 16% y-o-y in FY 2023 (Excluding one-off items, adjusted DPS increased 14% y-o-y);
- 2) Revenue per Available Unit (RevPAU) rose 23% y-o-y in FY 2023 to pre-Covid levels.
Financial and liquidity position:
- 1) Healthy gearing of 37.9%;
- 2) Low average cost of debt of 2.4% p.a.;
- 3) 81% of total debt on fixed rates;
- 4) Robust interest cover of 4.0X
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