The Weekly Nibble: Investment Ideas for Income-Hungry Investors
Here are some of the most popular articles that have appeared on the Motley Fool Singapore’s website this week.
Since 2015, my Foolish colleague, Chong Ser Jing, has been ranking all the stocks in the local stock market at the start of each year using the Magic Formula. He has also been publishing articles on the top 30 stocks with his findings. The Magic Formula was developed by investor Joel Greenblatt and explained in his book, The Little Book That Beats The Market.
This week, I took a look at the 2018 edition of Ser Jing’s Magic Formula work to sieve out three of the top 30 stocks that looked attractive to me as income stocks. I then wrote about them in an article (link here again).
StarHub Ltd (SGX: CC3) and M1 Ltd (SGX: B2F) are popular stocks among investors as they have dividend yields that are higher than that of the market-average. However, buying stocks based on their dividend yields alone could be detrimental to your portfolio (if only investing was that easy!).
A company could have a high dividend yield because of poor business fundamentals that have punished its stock price. The lower the price of a stock is, the higher would be its dividend yield.
In my article, I go behind the two telcos’ dividends and examine if they are sustainable. My conclusion was that one telco had a relatively safer dividend than the other. Jump to my article to find out more (link here again).
My fellow Fool, Jeremy Chia, recently conducted a deep dive into two real estate investment trusts (REITs) that are selling at cheap valuations. Notably, the two REITs that Jeremy studied have a history of growing their distributions per unit. To learn more, do take a look at Jeremy’s article (link here again).
REITs discussed in the article include Mapletree North Asia Commercial Trust (SGX: RW0U), previously known as Mapletree Greater China Commercial Trust, and Fortune Real Estate Investment Trust (SGX: F25U).