UOB KayHian says while there are still uncertainties on the potential fallout on regional economies from the Japanese disaster, “some defensive yield instruments have fallen to attractive levels. We think investors should relook at these investment assets which are backed by interest or dividend incomes.”
It notes among corporate bonds traded on the SGX, Jurong Town Corp pays a coupon of 4.826%. It says preference shares provide a specific dividend before any dividends are paid to the common shareholders, and take precedence over common stock in the event of liquidation, with DBS Bank 6% NCPS 10 (D14.SG) currently yielding 5.96%.
Among REITs under its coverage, the house notes Sabana REIT (M1GU.SG) has a forecast FY11 yield of 9.2%, followed by Ascendas REIT (A17U.SG) and Ascott Residence Trust (A68U.SG) both at 7.2%.
Lastly, it notes among stocks that pay dividends, it notes StarHub (CC3.SG) leads with a forecast FY11 dividend yield of 7.7%, then Hong Leong Finance (S41.SG) at 6.9%.
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