💰Dividend Picks | Get A Handsome Payoff with A Humble Start

Since November 6th, Tesla's stock price has surged by 84%, when Dow Jones has recorded a nine-day losing streak.

With lower stakes, some low-price stocks can serve as quick starters.

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Market recap

Recently, the Dow Jones Industrial Average, representing the traditional economy, recorded a nine-day losing streak, marking the longest such streak since February 1978. Meanwhile, the Nasdaq Index, representing technology stocks, has been hitting new highs, despite a slight dip at yesterday's close.

- Big Techs: $Tesla Motors(TSLA)$ rose over 3%, and Apple gained about 1%, both continuing to set new highs. Since November 6th, Tesla's stock price has surged by 84%, with widespread market optimism suggesting it may break through the $500 mark. On the other hand, Nvidia has experienced a cumulative decline of over 9% since December 5th. The quantum computing theme is also thriving, with RGTI and QUBT up 33% and 51%, respectively.

- Sino-America: Chinese stocks are generally on the rise, with the $NASDAQ Golden Dragon China Index(HXC)$ up nearly 2%. Among them, Hesai Technology surged over 36%. During a press conference at Mar-a-Lago in Florida, US president-elect Donald Trump said on Monday that Beijing and Washington could work together "to solve all of the problems of the world."

- Virtual Assets: Bitcoin reached a new all-time high before pulling back. On Tuesday, Bitcoin surged to nearly $108,500 before diving and reversing to approach a daily low of $106,000.

The market is adopting a wait-and-see approach towards interest rate cuts, with a short-term pullback in U.S. stocks. Due to an unexpectedly strong 0.7% month-on-month increase in U.S. retail sales in November, there are concerns that the Federal Reserve may pause rate cuts in January. Nick Timiraos wrote that there is no consensus within the Fed on whether to continue with rate cuts. If the economy continues to grow steadily, the rationale for further rate cuts will become less compelling.

A combo play: Taste the light starters

In Singapore, stocks are typically traded in fixed lots, usually 100 shares per lot. In stock investment, the strategy of investing in low-priced stocks is quite flexible, and when combined with high dividend yields, it can offer a higher degree of certainty.

The low-priced stock strategy is a popular investment method. Low-priced stocks generally refer to stocks with relatively low prices, behind which the companies may have significant potential and value. The core idea of this strategy is to purchase stocks at a lower cost with the expectation of higher returns in the future.

The appeal of low-priced stocks lies in their potential for significant price appreciation. Due to their lower price, even a modest increase can result in substantial gains. Additionally, low-priced stocks are often overlooked by the market, presenting opportunities for undervaluation. Investors can identify undervalued low-priced stocks with strong fundamentals through thorough research and analysis.

High dividend yields mean that a company distributes a portion of its earnings to shareholders in the form of cash dividends. When investors select low-priced stocks that also offer high dividend yields, they can receive a relatively stable cash flow return early in their investment. This not only increases investor confidence but also helps mitigate potential losses from stock price fluctuations, providing a more solid foundation for investment and enhancing the certainty of returns.

Dividend Play: Low-Priced Stocks in SGX

Stocks are suitable for investment beginners when they: have low prices, pay high dividend yields, and show an upward trend. Starting with a light position, investors can benefit from both capital appreciation and dividend distribution at a lower cost, making it a high-value approach.

SGX Dividend Play (as of 18th Dec. 2024)

Kimly (1D0), UOB Kay Hian (U10), and Haw Par (H02) are notable stocks in SGX worth keeping an eye on recently, as light starters with lower stakes.

Kimly (1D0): Starting at ~S$30 per lot.

- Kimly Limited is a Singapore-based operator of traditional coffee shops. The Company operates and manages coffee shops, Kimly Makan Plac, and food courts, Foodclique Pte. Ltd. The Company operates approximately 60 coffee shops, three industrial canteens and five food courts. Its food retail division is carried out by Kimly Food Holdings and Chodee Food Holdings. It operates approximately 120 food stalls comprising approximately 40 mixed vegetable rice stalls, over 10 rice garden stalls, two teochew porridge stalls, approximately 40 dim sum stalls, approximately 30 Seafood Zi Char stalls and one live seafood restaurant.

UOB Kay Hian (U10): Starting at ~S$170 per lot.

UOB-Kay Hian Holdings Limited is an investment holding company. The Company, through its subsidiaries, is engaged in stockbroking, futures broking, investment trading, margin financing, investment holding, and provision of nominee and research services. The Company's segments include Singapore, Hong Kong, Thailand and other countries.

Haw Par (H02): Starting at ~S$1,100 per lot.

Haw Par Corporation Limited is engaged in manufacturing, marketing and trading healthcare products; providing leisure-related goods and services, and investing in properties and securities. The principal activities of the Company are licensing of the Tiger trademarks and owning investments for long-term holding purposes. Its segments are Healthcare and products; Leisure products and services; Property rental, and Investments. The Healthcare division manufactures and distributes topical analgesic products under the Tiger Balm and Kwan Loong brands. Its product extensions include Tiger Balm Medicated Plaster, Tiger Balm Joint Rub, and Tiger Balm Neck and Shoulder Rub.

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