Thursday, March 8, 2012

Telechoice

Telechoice is the stock i have looked at for this post.

http://www.telechoice.com.sg

Here is a link to the company page.

The latest dividend they have announced is 1.6 cents for the year.

They have a reasonably long track record of paying out dividends, at least for the last ten years.


Year Dividend Growth (%)
2012 0.016 -11.11%
2011 0.018 2.86%
2010 0.0175 -12.50%
2009 0.02 -20.00%
2008 0.025 100.00%
2007 0.0125 -66.67%
2006 0.0375 87.50%
2005 0.02 0.00%
2004 0.02 0.00%
2003 0.02


Broadly, if you are looking for a stock which pays out a dividend of 1.25 to 2 cents a year with a reasonable price between 18 to 22 cents, then Telechoice would fit the bill.

The share is priced at 25 cents as on date.

It tends to peak around May its ex dividend date.

Its trough is around July-Aug at around 20 cents.

One approach is to buy around July/Aug at around 18 to 20 cents and sell when it reaches 25 cents, ensuring a Return on Capital of 25%.

The other approach is to buy at 20 cents and hold for a dividend yield of around 6 to 10%.

The third approach would be to buy at around 25 cents and hold for a dividend yield of  5 to 6%.

I would personally want to buy around 18 cents.

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