WILL YOU INVEST IN THIS UNDERVALUED, HIGH DIVIDENDS, ZERO-DEBT STOCK NOW?
a) dividend yields of more than 4%;
b) low or zero debt; and
c) Price-to-Book ratio of less than 0.5
This will allow me to screen for stocks where one could buy at a 50% discount to its book value (criterion c) while ensuring that the stock is financially viable (criterion b) and while holding, the investor will be ensured of a high dividends stream of more than 4%.
I was surprised that currently on the Singapore stocks markets, there is only ONE stock which fits all the criteria. This stock is none other than Parkson Retail Asia stock which has a Price-to-Book ratio of 0.498, 5% dividends yield and zero debt. Currently, Parkson Retail Asia stock trades at $0.1, some 43% lower than its 52-week high of $0.175. Technically, Parkson Retail Asia stock seemed to find a support at the $0.09 level and the stock price seems to be inching north slowly.
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