DBS Group Research Model Portfolio - Conservative
Your investment goal is to seek income while protecting your capital. You accept a fairly stable stock price fluctuation with a moderate level of dividend income. The investment horizon is up to 12 months.
We start the Conservative portfolio with 4 stocks - Frasers Centrepoint Trust, Sheng Siong, Thai Beverage and ST Engineering. These stocks are selected because of their resilient businesses, stable dividend payout and viewed as a 'safe-haven' amid the current macro economic uncertainties.
FRASERS CENTERPOINT TRUST
- Strong earnings resilience amongst REITs with downside risk protection.
- Upside to earnings growth from AEI on major asset (northpoint).
- Yields of 6.5% attractive.
Company Guide:
SHENG SIONG GROUP
- Sheng Siong Group is on track towards its 50-store target; margin expansion trend is performing to our expectations.
- Dividend continues to be attractive at c.4% based on FY16F DPS of 3.6 Scts.
Company Guide:
THAI BEVERAGE
- Thai Bev is taking steps to transform into a regional beverage player.
- It should have an advantage over its peers given its dominant position as the leading spirits player in Thailand.
Company Guide:
ST ENGINEERING
- Steady earnings and dividends provide safe haven in current uncertain and volatile market environment.
- Final dividends to be announced soon. Smart city contracts may be upcoming.
Company Guide:
Singapore Research Team
DBS Vickers
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http://www.dbsvickers.com/
2016-02-11
