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Chicken Vs Dividend Yielding Stocks
rasilio
#1 Posted : Tuesday, June 29, 2010 11:16:47 AM
Rank: Member

Joined: 6/23/2010
Posts: 153
Location: FU
In my short life I have discovered only three investment vehicles that increase my income as I age

1. Animals - they give birth naturally
2. commercial property - tenants pay your mortgage and increase the value of your property, and
3. dividend yielding stocks

option 2 is not viable in Kenya unless there is a new constitution. Or unless i have pirate pesa.

I have already crunched my numbers for animals and especially chicken, cows and goats/sheep and I love the numbers.

I now need to figure out which kenyan stocks can make a good portfolio for dividend yielding stocks. This is what I am looking for

1. low debt ratio
2. dividends from earnings not debt
3. growing dividend yields
4. not a growth stocks....I don't believe in them and never will.
5. rate of return in terms of value and dividends higher than inflation rate

any good ideas?
KulaRaha
#2 Posted : Tuesday, June 29, 2010 11:59:13 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
total
Business opportunities are like buses,there's always another one coming
cnn
#3 Posted : Tuesday, June 29, 2010 12:45:56 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
SCBK and if only somebody beats sense into tea companies board of directors...
Wa_ithaka
#4 Posted : Tuesday, June 29, 2010 1:10:28 PM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
Total is consistent
Also stanchart, NMG
The Governor of Nyeri - 2017
atiriri
#5 Posted : Tuesday, June 29, 2010 1:24:49 PM
Rank: Member

Joined: 12/7/2009
Posts: 320
Location: nairobi
I like BAT. They give dividends three times in a year. KBL they give dividends twice a year. BBK twice.
kyukkamba
#6 Posted : Tuesday, June 29, 2010 2:00:15 PM
Rank: Member

Joined: 5/28/2010
Posts: 151
atiriri wrote:
I like BAT. They give dividends three times in a year. KBL they give dividends twice a year. BBK twice.


Is it the number of times or the value?? anyway u have picked great companies...they work both ways ..value and dividends.
Ni Uhuru wa Mbesha...Niguo kana tiguo?
rasilio
#7 Posted : Tuesday, June 29, 2010 3:55:08 PM
Rank: Member

Joined: 6/23/2010
Posts: 153
Location: FU
nashukuru sana...I will look at them over the next week.
gladiator
#8 Posted : Wednesday, June 30, 2010 2:15:02 AM
Rank: Member

Joined: 8/25/2006
Posts: 101
I did some analysis on best dividend stocks btw 2001 & 2009 (I have not updated it yet for 2010) and the best stocks in terms of growing dividend yields were

1. NMG (40%)
2. EABL (30%)
3. Kenol (36%)*
4. CMC (37%)
5. DTBK (25%)

The reason that some stocks with lower percentages like EABL are higher is because I penalized stocks that had reduced or non-existent dividend payouts during certain years.

I also penalized stocks like SCBK and Total which are mentioned here because even though their absolute dividend yield is higher on initial purchase, the relative growth of the dividend yield over the years was low and also their capital gains were much lower.

Hope that helps. Using this analysis, I invested in NMG, EABL and DTBK back in 2006 and have been impressed with the return of my portfolio. (I trade other stocks but the initial investment in these 3 stocks, I have held steady)

P.S. Good thing you brought this subject up, I need to update the figures for 2010 :)
rasilio
#9 Posted : Wednesday, June 30, 2010 8:26:57 AM
Rank: Member

Joined: 6/23/2010
Posts: 153
Location: FU
thanks a lot gladiator. one of the reasons that companies have some years of non-existent dividend is a poor debt earnings ratio. I was going to run those stocks through that and you saved me quite a lot of time bearing in mind I don't have any info on these stocks.

if you finish the 2010 research, can you please send it to me? I wouldn't mind contributing to the kitty.

i know from experience that owning a good dividend paying portfolio is a sure winner in stock investing. leave the growth stocks to those with the stomach for it.

Another question...are there Kenyan companies that offer DRIPs and is there a market place to buy companies that are not listed on the NSE?
Govmusili
#10 Posted : Wednesday, June 30, 2010 9:48:07 AM
Rank: New-farer

Joined: 1/13/2010
Posts: 85
Location: Nairobi
rasilio, ive been thinking about investing in broiler chiken 4 a while since uve already cranked the numbers sii u help me out with some details i.e costs, benefits
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