Choosing to Invest in Dividend Stocks

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!

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

  1. Go into Browse and choose Sort by Jitta Score
  2. Choose companies with a Jitta Score > 5 and Historical Jitta Score > 5 every year, and Jitta Line that has an upward trend
  3. Look into Jitta Signs whether the stock has a Dividend Payout (if it does, then consider this an interesting prospect)
  4. 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:

http://www.jitta.com/stock/bkk:kbank
http://www.jitta.com/stock/bkk:bbl
http://www.jitta.com/stock/bkk:cpall
http://www.jitta.com/stock/bkk:smk
http://www.jitta.com/stock/bkk:pb
http://www.jitta.com/stock/bkk:bec
http://www.jitta.com/stock/bkk:jubile
http://www.jitta.com/stock/bkk:lpn
http://www.jitta.com/stock/bkk:scb
http://www.jitta.com/stock/bkk:twfp
http://www.jitta.com/stock/bkk:ps
http://www.jitta.com/stock/bkk:wg
http://www.jitta.com/stock/bkk:spc
http://www.jitta.com/stock/bkk:ttw
http://www.jitta.com/stock/bkk:scblif
http://www.jitta.com/stock/bkk:m-chai
http://www.jitta.com/stock/bkk:svh
http://www.jitta.com/stock/bkk:bla
http://www.jitta.com/stock/bkk:tcap
http://www.jitta.com/stock/bkk:topp
http://www.jitta.com/stock/bkk:spali
http://www.jitta.com/stock/bkk:bigc

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.

Author: Jitta

Jitta simplifies financial analysis for value investors and financial advisors alike. Our stock-analysis platform offers actionable advice to help them make better investment decisions and generate higher returns based on a simple principle: “Buy a wonderful company at a fair price.” And we do that by creating Jitta Ranking, our proprietary algorithm that ranks stocks based on their profit potential. Returns generated by Jitta Ranking since 2009 has outpaced that produced by the S&P500 index by a large margin. Jitta’s technology processes information like a human mind, assessing complicated data and digesting it into an easy-to-use and intuitive format. Its key features include Jitta Score, an indicator of a wonderful company; Jitta Line, an indicator of a company's fair price; financial statements-made-simple Jitta FactSheet; Jitta Playlist, an intelligent screener and backtest system in one; and Jitta Portfolio, a smarter investment-tracking mechanism.

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