Investment Moats

Introducing my Dividend Stock Tracker

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How it came about

It started off with a frustration that i had whenever i use my excel sheet to keep track of my dividend stocks and other not-so-good dividend stocks. The frustration was that whenever i see a stock that was sold down pretty badly, i had to find the stock price and key it into my excel sheet, then i need to find the current market cap so that my excel sheet would just compute.

The dividend stock tracker aim to be useful for people that are interested in forming a portfolio of income investments for high yield investing or investment income.

What is the Dividend Stock Tracker

Dividend Stock Tracker tracks a list of dividend stocks that are listed on the SGX. They can be:

  • Business Trusts
  • REITs
  • Utilities and Infrastructure stocks
  • Telecommunication stocks
  • Blue Chips
  • Others

The prices of these stocks will be updated daily at the end of each day. The data will be recomputed and the new ratios and yields will be displayed.

Some of the fundamental data covered are:

  • Operating Cashflow
  • Dividend Yield
  • PE and Earnings Yield
  • Operating Cashflow Yield and Free Cashflow Yield
  • Price-to-book ratio
  • EV/EBITDA
  • Return Premium
  • Debt/Asset
  • % Payout
  • % Cash holding of Assets

You may have observed that not all are displayed on the main table, thats because i can’t put everything into a small table.

Clicking on the name of each stock will display more detail information.

Moderating Dividend Payout

You would have notice that some of the yields are quite different from what brokerage houses display. This is because the yields are moderated by me. One time special dividends and dividends that seems unsustainable are moderated downwards so that it doesn’t give people an impression that if you buy now your yield will be that much.

So that is why Courage Marine’s payout is much less than what they paid out last year. I used an average payout for that.

Currency

For Stocks whose balance sheet data are in USD or RMB for example, i will use an exchange conversion. Most of the balance sheet data are thus like what they display in their annual report. E.g. Hongwei’s Total assets in this case is in RMB.

Balance Sheet Data

Balance Sheet Data are updated annually except for assets and debts which are updated quarterly

Conclusion

I hope its useful to� you as an investor. You can access my dividend stock tracker by clicking on the link next to the home.

You can read more about the metrics that i use in my dividend stock tracker here.

Take a look at the dividend tracker >>

Courage Marine 2nd Quarter Results

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Just 2 weeks ago there have been a slew of results release on companies i own and i plan to write about them. It just that work have been pretty busy thus i can only update briefly here until now.

The first company i am covering is Courage Marine. despite the fall in Baltic Dry Shipping Index, results have been pretty strong.

  • Profit for the period improved by 67% from the previous year.
  • Operating cashflow generated was  20 million vs 7.8 million from previous year.

Freight rates have been very volatile during the past few months, with the BDI collapsing to the 5,600 level during the end of January this year after climbing to an all-time record above the 11,000 level from November 2007. The BDI is currently at around the 7,000 level. The Group believes that the market conditions will remain positive based on the perceived strong demand from China for raw materials.

We sent four vessels for dry-docking in 1H08 and they were out of deployment for a total of about 120 days. We expect to send two more vessels for dry-docking during 2H08 and they are expected to be out of deployment for a total of approximately 90 days.

The Group will maintain its cost-efficient structure and focus on keeping its fleet well deployed and running efficiently. Assuming that the BDI stays at around the current level and barring any unforeseen circumstances, the Group expects to continue to do well in the second half of FY2008.

Despite the cyclical nature of the shipping industry, Courage Marine’s strategy to concentrate on cost and not taking unnecessary risks can either be seen as prudent or they could be viewed as gutless to take advantage of the commodities boom to ride the wave.

I like a company that is prudent but not taking advantage of the opportunites out there does not go down welll with this investor. However, when u have a high ROIC such as Courage Marine, you don’t question too much how they earn their beef since you know you probably knows much much less than these managers who have been doing shipping for such a long time.

Courage Marine is one of the stocks on my dividend screener. Here i use a rather conservative dividend per share since shipping stocks like Courage and Singapore Shipping are prone to really good times and givign out one time big dividends. That is not what we want on my dividend screener. What we want is a consistent high yield or at least a good yield of 6-7% that is increasing yearly. This would explain why the yield based on current price is just 6.7%. Lets just say that my div yield is almost 20% from the last payout.

Courage Marine generates a good operating cashflow and have rather low expenditure. Most likely, payouts will continue long term at 6-7% with the occasional big payouts.

At current price, its EV/EBITDA is only 3.2 times, which means if you believe this cyclical shipping boom will last at least 3 years, it will take 3 years of zero operating growth to earn back what you pay for this company.

Do be advice to rational your valuation on cyclical shipping play. Your yield depends on your entry vs the cyclical nature of the industry. Ensure you do not buy it at a high premium.

Dividend Screening Season!

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I took a pretty long break from taking a look at dividend stocks but on this lazy day i somehow seem to think that i should start being more hardworking, else i may regret my decision.

Starting today, I hope to post some dividend alerts on my blog so that we can share whether these companies are good yield stocks.

An update on my current yield stocks, whether in CPF or on my cash portfolio:

  • ST Engineering – 4% (My Average Yield), 6%(Current)
  • Courage Marine – 11% , 6%
  • Food Junction – 6.6%, 9.6%
  • Hong Wei – 6.6%, 5.2%
  • IFS – 6.25%, 6.7%
  • MacArthurCook REIT – 7%, 9.6%
  • MIIF – 10% , 10.4%
  • Sarin Tech – 6.5%, 7.7%

If not for Stupid ST Engineering, i would have earned a higher yield. Making a loss on it and earning a meagre yield that does not beat inflation. So angry!

Courage Marine Full Year Results: Leverage on a commodity boom?

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The year have been a good one for shipping companies as well as for ship builders. For Taiwan based Courage Marine group, it is no exception.

  • Profits improved 117%, buoyed by record rates last year.
  • Revenue improved 59% from 2006
  • Operating Profit After Tax improved from USD 49 mil to USD 58 mil.
  • In contrast, cost of sales only increase by 22%. The management has done well keeping control of the cost.

Balance Sheet

  • Total Cash is up to USD 64 mil from 43 mil. With a total asset valued at USD 120 mil, that represents half of total assets.
  • The company does not have any interest bearing long term debt. Moreover, current liabilities is decreasing as well.
  • The enterprise value stands at USD 176 mil.

Performance

  • The return on invested capital is 113% vs 93% last year. Truly astounding figure but no surprise due to the bouyant environment.
  • Based on 32.5 cents, if we were to discount the operating cashflow to perpetual with a WACC of 10% and growth rate of 3%, its present value based on cashflow is USD 585 mil. Thats 331% of the current enterprise value mentioned above. Do note: Cashflow don’t go up in a straight line. If you take the example of , you will see that challenging times would cause operating cashflow to be negative, thus rendering this valuation model to fail.
  • Net Profit Margin improved from 49% to 66%. My take is that future cost would drastically increase. It very much depends on how reactive their pricing is. If rates can be readily raised, margins may be able to maintain.
  • The operating cashflow yield is 24%! This would mean that the cash generated from operations allows them to pay a 24% dividend yield if they are not making capital replacements or expansion.
  • Dividend payout ratio for last year is 26%. That is very good if you consider that they have 64% of the earnings to reinvest and grow. However, it is only good if the management have a sensible use for it. If not, they should pay it back to shareholders to be redeployed.
  • My dividend yield on this is nearly 21% since the total 3 ct div is in USD. At current price your yield should be 12%

Courage Marine is a conservative yield play. It is especially worth it if your entry price is near rock bottom. The future for dry bulk shipping should be good. The results of courage marine follows the fate of the Baltic Dry Exchange Index. That index, is also an indirect indicator of the demand for commodities.

The future prospects for commodities should do well with the amount of infrastructures being constructed in both developing nations as well as infrastructure replacement in developed nations.

Courage Marine’s challenge is to keep cost of sales reign in while taking advantage of improving dry bulk pricing.