Dear readers, amidst all the recent stock markets volatiles, there is one Singapore stock which is undervalued and currently trading at a dividend yield of 4.60% now. To be frank, there are many Singapore stocks fulfilling the aforementioned criteria, with some even more undervalued and offering more dividend yield. But today, let me just focus on this one Singapore stock which
a) is undervalued with a Price-to-Book ratio of 0.86;
b) has a divided yield of 4.60%; and
c) trading at a Price to Earnings ratio of 11.69 now
This stock is none other than the SPDR Straits Times Index (STI) ETF which tracks the Straits Times Index, the benchmark indicator of the Singapore stocks market. Will you invest in this stock right now?
The fundamentals of the STI ETF though decent, are really not the best out there. If you do a screening of stocks, there are other Singapore equities which are better than the STI ETF.
But what happens is that compared with the other Singapore equities, the STI ETF is more defensive and robust being an index fund that tracks the movement of the Singapore stock benchmark indicator. This feature is really welcome on the back of the current volatile stock market macro backdrop where Covid-19 seems to have eroded all the fundamentals of businesses, current and future.
But do not rush in yet to embrace this STI ETF. At a Price to Earnings ratio of 11.69 , I view the STI ETF valued a tad high given the current economic and financial climate.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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