Choosing to Invest in Dividend Stocks

by Jitta

Apr 5, 2017 • Last updated: Jan 12, 2023

Choosing to Invest in Dividend Stocks

Actually choosing stocks in Thailand is not that difficult. There are only around 500 of them, so you can easily do this yourself.

Go into Browse and choose Sort by Jitta Score
Choose companies with a Jitta Score > 5 and Historical Jitta Score > 5 every year, and Jitta Line that has an upward trend
Look into Jitta Signs whether the stock has a Dividend Payout (if it does, then consider this an interesting prospect)
Look at the details of Dividend Per Share in Jitta FactSheet to see whether the trend in dividend payout in the long-run

If we follow the above steps, we will be able to find companies that have good operations and dividend payouts as the following:

Or, if we still can’t select, look at the Jitta Line to see whether it has an upward trend; we may be able to find some more interesting stocks such as:

http://www.jitta.com/stock/bkk:bh
http://www.jitta.com/stock/bkk:fe
http://www.jitta.com/stock/bkk:pr

These companies pay dividends every year, however, the latest year may have underperformed, decrease the Fair Price. This may be an opportunity to invest, if we feel that this underperformance is only a temporary thing and the price now is quite cheap when compared to the long-term quality of the company.

That said, selecting companies is also based on how strict we are -like I said before, choose companies that are fundamentally good. So if you’re really strict, choose companies that have Jitta Scores more than 6 every year. And then look for companies that pass the different indicators and that has a record of good dividend payouts.

If we were to analyze deeper, we may eliminate real estate companies such as LPN, PS, SPALI from the list of good dividend companies because these businesses need to construct new home and condominiums to sell every year. This makes the yearly profits and prices fluctuate; when the real estate market saturates, it makes it harder for these firms to bring in sales. Also, if we don’t want to bother with economic conditions, then we may eliminate stocks in the banking industry such as KBANK, BBL, and TCAP.

Once we have picked out the companies that we want to invest it, start by looking at the latest dividend payout and calculate the price we would like to purchase this stock in.

So basically, this is how we select dividend stocks on Jitta (that we have to currently pick ourselves).

As for the functions that can help select different stocks, Jitta is now working on the Jitta Screener for investors to select stocks based on their own different Criteria. For example, selecting stocks with Jitta Score > 7 with a Dividend Payout: Increasing Every Year. If you have any ideas on how to use the Jitta Screener, please feel free to make a suggestion!

Personally, I don’t think that this is all that necessary in Thailand because there aren’t too many stocks to begin with. But once Jitta covers all the stocks in different countries, the Jitta Screener should greatly enhance your selection with high efficiency.

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More concept, ideas and investment strategies with Jitta