QAF - A dividend rich company
Some Facts on QAF that i shared with my clts..
Before I share more on QAF fundamental's and technical's aspect, below is a background information on QAF.
Some company background for QAF
QAF Ltd, formerly known as Ben and Company Limited, was incorporated in Singapore on 3 March 1958 as a private company. The Company was converted into a public company on 30 June 1967 and its stock units were quoted on the SGX on 25 August 1967. The principal activities of the Company are those of an investment holding and management company. The principal activities of the Group consist of the manufacture and distribution of bread, bakery and confectionery products; operations of supermarkets; cold storage warehousing; trading and distribution in food, beverages, food related ingredients and commodities; production, processing and marketing of pork and feedmill production; and investment holding. In 2005, QAF bought a 55 percent stake in China Food Industries Limited (‘CFI’), a Singapore public listed company, which is a major producer of pork meat and livestock in Shandong Province, China. CFI has a fully integrated farming operation which includes a feedmill, breeding and commercial farms and an abattoir. It also owns and operates a large soya bean crushing plant.
On July 2012, QAF also sets its footprints in China, having granted approval from China's authority.
From shareinvestor.com
QAF: Gardenia Fujian Established To Extend Bakery Operations Into China.
11 Jul 2012 17:55
Gardenia Fujian is established to serve as the QAF Group's pilot project to extend "Gardenia" bakery operations into China, in that Gardenia Fujian will produce, operate and market its "Gardenia" brand of bakery products in Fujian and its vicinity, and as such to gain a foothold for further future expansion into the greater China market...
As this counter is thinly covered, almost no coverage from any houses analyst, I had resorted to using the blog post comment (below) from a dividend investor.
QAF
QAF is a relatively quiet stock that is not monitored by most investors, given the lack of research coverage. However, QAF is actually the producer of 2 leading bread brands, Gardenia and Bonjour in Singapore, Malaysia and Philippines. I entered QAF at an average price of $0.72, which is about 7% dividend yield. Given the huge bull run in the stock market, it has been quite tough for me to look for value buys. However, QAF came across as a stock with an attractive price tag, dividend yield and a solid business. Leverage is very low and QAF has strong cash flows with dividend payout ratio of only approximately 50%. Valuation wise, QAF is only trading at about 6.x P/E and is much lower than its peers with many having P/E higher than 10 times. Just within a week or so of buying the stock, QAF has rallied significantly as it prepares to go ex-dividend.
Above is not my work, it is from http://www.investinpassiveincome.com/my-singapore-stock-portfolio-end-march-2012/ , a passive income investor blogger from Singapore.
Brief Glance of its BalanceSheets
Technically, this stock has been on a upwards trend for a year and its now very close to its upward slant trend line, its support line.
Historical Dividend
At current share price, dividend is about 7+% per year.
Disclaimer : This is not a buy/sell call recommendation.
Dividend paying stocks have become amongst the most sought after entities in the stock markets. However, it should be noted that not all dividend stocks are created equal. There are certain factors that need to be kept in mind while identifying the right dividend stock to invest in.
ReplyDeletesgx dividends
Hi, thx for discussion. Appreciate =)
ReplyDeletei totally agree with your argument. This is just merely to identify certain 'non-mainstream' dividend counters that investor might left out.
For other factors that dividend investor might want to consider will be the company's cash flow, their dividend payout policy in good/bad times,management etc. A good growth company with solid dividend will always be sought after by investor.
In my opinon, when investing in dividend counters..One must be very 'niao (in hokkien) and stingy because every cents will determine how much % in returns you are getting for it. Have an entry price in mind. Most importantly, understand the structure and the business of the company.
For the sake of the discussion, there are reasons why REITs (just some of them) might not be as good. Article from BT, extracted from asiaone : http://business.asiaone.com/Business/My%2BMoney/Building%2BYour%2BNest%2BEgg/Investments%2BAnd%2BSavings/Story/A1Story20111128-313158.html