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> 10 % Dividend Yield........my new yard stick in NSE stock picking
Rank: Member Joined: 4/14/2011 Posts: 639
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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.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Aguytrying wrote:stocksmaster wrote: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. The strategy is holding perfectly......... Happy Hunting very perfectly(double superlative), Williamson tea has swiflty come down, now at 235. Time to pull the trigger again?Do you think touching 200 is overly optimistic before end year results in may 2012? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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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.........
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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When is Williamson Tea paying this Ksh.50 dividend? History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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BGL wrote:When is Williamson Tea paying this Ksh.50 dividend? Had been informed by their Company Secretary that EFT was to be effected as from this week and those without bank mandates were to be dispatched cheques as from next week. Happy Hunting.....
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Rank: Member Joined: 4/14/2011 Posts: 639
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Aguytrying wrote:stocksmaster wrote: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. The strategy is holding perfectly......... Happy Hunting very perfectly(double superlative), Williamson tea has swiflty come down, now at 235. Time to pull the trigger again? Do you think touching 200 is overly optimistic before end year results in may 2012? @master 230 n0w what do you think?
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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Hunderwear wrote:Aguytrying wrote:stocksmaster wrote: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. The strategy is holding perfectly......... Happy Hunting very perfectly(double superlative), Williamson tea has swiflty come down, now at 235. Time to pull the trigger again? Do you think touching 200 is overly optimistic before end year results in may 2012? @master 230 n0w what do you think? Its definately a buy.......problem is the limited supply. Happy Hunting
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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stocksmaster wrote:BGL wrote:When is Williamson Tea paying this Ksh.50 dividend? Had been informed by their Company Secretary that EFT was to be effected as from this week and those without bank mandates were to be dispatched cheques as from next week. Happy Hunting..... Received. Spent. Buying more shares! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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VituVingiSana wrote:stocksmaster wrote:BGL wrote:When is Williamson Tea paying this Ksh.50 dividend? Had been informed by their Company Secretary that EFT was to be effected as from this week and those without bank mandates were to be dispatched cheques as from next week. Happy Hunting..... Received. Spent. Buying more shares! I also got my dividend via EFT last week on friday. On this dividend we have to take a holiday! I do not think they will ever pay such a high dividend again. Long live Williamsom Tea. History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:stocksmaster wrote:BGL wrote:When is Williamson Tea paying this Ksh.50 dividend? Had been informed by their Company Secretary that EFT was to be effected as from this week and those without bank mandates were to be dispatched cheques as from next week. Happy Hunting..... Received. Spent. Buying more shares! which shares are you buying now, and at what price? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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@ Stockmaster - what do you say about Kapchorua tea..they didn't announce a interim dividend..so should we expect a fat final dividend?
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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I have adopted an effective mode of aggrandizing my own fortune by copying the investment strategy of one stocksmaster. It is a good strategy for me and it works since i do not understand the technical analysis neither do i have the time to do research. On my own i can scout for unquoted stocks from my networks. Bwana stocksmaster give me a shout out we can have a cold beer one at the Stanley baada ya Kazi. If we exhaust stories za stocks we can talk DNA or other Bio-stuff. My email is Bgl.inc.1[at]gmail[dot]com History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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BGL wrote:I have adopted an effective mode of aggrandizing my own fortune by copying the investment strategy of one stocksmaster.
It is a good strategy for me and it works since i do not understand the technical analysis neither do i have the time to do research.
On my own i can scout for unquoted stocks from my networks.
Bwana stocksmaster give me a shout out we can have a cold beer one at the Stanley baada ya Kazi. If we exhaust stories za stocks we can talk DNA or other Bio-stuff. My email is
Bgl.inc.1[at]gmail[dot]com Can make a deal.......you scout for the unquoted and i scout for the quoted. Will give you a shout out if this symbiotic association is agreeable.... Happy Hunting....
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Rank: Member Joined: 4/14/2011 Posts: 639
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stocksmaster wrote: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......... With such returns so far you can take a holiday for the rest of the year comfortably!!!!!!What your new strategy
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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Hunderwear wrote:stocksmaster wrote: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......... With such returns so far you can take a holiday for the rest of the year comfortably!!!!!!What your new strategy Its six months (Dec 2011 to May 2012)since i started this thread and since then, the scenario is as follows: 1. Kenol Kobil - A potential buy out at around Ksh 20 will be at least 120% return on investment. 2. K.C.B - Current price Ksh 23 after a dividend payment of Ksh 1.85. (Ksh 23 + 1.85 = Ksh 24.85). Thats a 65% return on investment. 3. Williamson Tea - At a price of Ksh 273 (Plus an interim dividend of Ksh 50) = Ksh 323 Thats a 73% gains and the end of year results are yet to be released where i expect a second dividend of at least Ksh 20. Happy Hunting.
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Rank: Veteran Joined: 11/30/2006 Posts: 635
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Scubidu wrote:stocksmaster wrote:@ Scubidu: T-bills in Uganda are currently yielding 24-25%. They may be better value for money especially for you whose based in Uganda.
Happy Hunting. Not going to be here for long mate and don't know how long these rates will stay. Besides Tbills are boring. Nway I'm sure there's some solution banks can offer to prevent me from any exposure. Ta very much. 
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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stocksmaster wrote:Hunderwear wrote:stocksmaster wrote: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......... With such returns so far you can take a holiday for the rest of the year comfortably!!!!!!What your new strategy Its six months (Dec 2011 to May 2012)since i started this thread and since then, the scenario is as follows: 1. Kenol Kobil - A potential buy out at around Ksh 20 will be at least 120% return on investment. 2. K.C.B - Current price Ksh 23 after a dividend payment of Ksh 1.85. (Ksh 23 + 1.85 = Ksh 24.85). Thats a 65% return on investment. 3. Williamson Tea - At a price of Ksh 273 (Plus an interim dividend of Ksh 50) = Ksh 323 Thats a 73% gains and the end of year results are yet to be released where i expect a second dividend of at least Ksh 20. Happy Hunting. Seven months down the line and the scenario is as follows: 1. KK - (Purchase Price=Ksh 9.30; Dividend since purchase=Ksh 0.43). With the expected buy out, it seems to have found some price stability at Ksh 16. Am holding out for Puma cash which i anticipate will be > Ksh 20 (at least 25% more than if i cashed in now). 2. KCB - (Purchase Price=Ksh 15; Dividend since purchase= Ksh1.85). The price seems to have stabilized at Ksh 23-23.50. It is still undervalued; price target is Ksh 40 by April 2013. 3. Williamson Tea - (Purchase Price = Ksh 186; Dividend since purchase = Ksh 57.50). The 2nd half of their financial year was greatly affected by weather. However, they still managed to announce an EPS of Ksh 93 for year ended March 2012. Of importance is that for the last 3 years, the company has announced EPS in the range of Ksh 93-97 hence signaling a new high normal in profitability. Remove the biological assets (non-cash profit) component from the profit and this gives cash profit of Ksh 50-60 yearly. The tea prices are currently at new highs ($3.70-3.80 per kg) and with the precipitation experienced over the last few months, a possible continuation of this trend in profitability is expected. The company has given me a dividend yield of 31% within 7 months!! Am holding onto this one as the future looks bright for Williamson tea (and also my price target of Ksh 400 is yet to be met). Going forward: I am currently accumulating the following 2 counters: 1. Rea Vipingo - At Ksh 16 - 16.50; The company announced above normal EPS last year (Ksh 7.79) which the market assumed was a one off. However, half year March 2012 produced an EPS of 3.47 (Versus Ksh 2.56 for 2011) which indicated last year’s profits were the new normal and could be replicated easily this year. The diversification into horticulture seems to be paying off handsomely (they leased some land in athi river (130 acres) which they are growing baby corn, etc for export in addition to their horticulture project at Kibwezi (250 acres)). Last year, they raised their dividend from Ksh 0.80 to Ksh 1.10, and I project at least a dividend of Ksh 1.50 for the year ending September 2012 based on a Ksh 6-7 EPS for 2012. They hold enormous real estate in Kenya and Tanzania (In Kenya – Kibwezi: 22,215 acres; Vipingo (Near the exclusive Vipingo Ridge): 10,575 acres http://www.businessdaily.../-/wghxkwz/-/index.html
; and Tanzania: 36,660 acres) and are constantly increasing their sisal acreage. The diversification to horticulture is a sound strategy for this agribusiness company. This is a company to watch going forward. 2. KCB – The price of Ksh 23.25 - 23.50 is too enticing to ignore what with my price target of Ksh 40 within the next 10 Months and a dividend of Ksh 2 for 2012. Happy Hunting.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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@stocksmaster...why would you hold onto KK at current prices given the upside you see on KCB?,swapping the two would give you better returns,unless of course Puma pays northwards of 25.
Again we converge on the eye on Rea vipingo but good supply below 16 has been a mirage.
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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cnn wrote:@stocksmaster...why would you hold onto KK at current prices given the upside you see on KCB?,swapping the two would give you better returns,unless of course Puma pays northwards of 25.
Again we converge on the eye on Rea vipingo but good supply below 16 has been a mirage. @stocksmaster Similar to CNN, what is enticing you to hold onto REA? Are you looking at the vast land that they occupy? I am with you on KCB
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Rank: Elder Joined: 6/20/2007 Posts: 2,037 Location: Lagos, Nigeria
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ON KCBWith rights issue in the offing and other stringent CBK rules , I expect some stagnation on KCB price rally , I project 27 - 30 bob in 10 months rather than 40. ON RVP PlantationThe reasoning is not convincing from my point of view. I personally will not accumulate this thinly traded and unpredictable counter. Might be the witty author knows better. Regards The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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> 10 % Dividend Yield........my new yard stick in NSE stock picking
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