stocksmaster wrote:With the index first approaching the 3000 mark, my stock picking focus is now on dividend yield.
For my long term portfolio, i am focusing on stocks that assure me at least a 10% Dividend Yield at prevailing prices. My focus therefore is now on the following stocks:
1. Kenol Kobil - At Ksh 9.30, and with management having assured investors of at least USD 35M net profit (EPS of 2.15 at 45% dividend payment policy) with a dividend of about Ksh 1, this represents 10.75%. Am hoping for a price dip below Ksh 9.00 to undertake massive purchases although am already buying at prevailing prices.
2. KCB - At a projected dividend of Ksh 1.50 for 2011, the price of Ksh 15 represents a 10% dividend yield. Am buying at price dips below Ksh 15.
3. Williamson Tea - Having paid Ksh 15 dividend last year on an EPS of Ksh 97, the company made 91% of this money in 1st Half 2011 alone. Am projecting an EPS of Ksh 135 - 140 for the full year. The company is awash with cash and can comfortably give Ksh 25 - 30 as dividends for 2011. I'll be buying at any price below Ksh 250.
As prices continue to dip, my 10% principle brings more companies into focus.
Happy Hunting.
Its 4 months since i adopted the above investment strategy and a good time to analyze the progress so far:
1. KenolKobil - Purchase Price: Ksh 9.30 ; Current price: Ksh 12. 75
Gain: Ksh 3.45 ; % gain = 37%
2. KCB - Purchase Price: Ksh 15 ; Current Price: Ksh 23.75
Gain: Ksh 8.75 ; % gain = 58.3%
3. Williamson Tea - Purchase Price: Ksh 186 ;
Current Price: Ksh 232
Gain: Ksh 232 - 186 + 50 (Interim Dividend)=
Ksh 96 ; % Gain = 51.6%
The three picks have ourperformed the NSE index (NSE Index has risen about 18% since then).
Am evaluating the three stocks in light of the prevailing market conditions, the capital gains etc and will soon post my next move concerning the three picks.
Happy Hunting.........
x handle: @stocksmaster79