SGX Shares with 8 % Yield and 30% Gain in Share Price in 1 year. Is that possible?

(Sidetrack: Happy Remi Day)

 

Recently came across someone saying that. Hence it flashed across my mind and I started asking myself if this is possible.

I have decided to use Stockscafe screener to aid myself to see if its possible.

Screener Settings

Current Yield > 8%

Projected Yield > 8%

P/E more than or equal to 1 (To ensure company is profitable minimally)

Close from 52 weeks low at least 30% (To ensure a 30% gain is somewhat possible)

 

Pre-screening thoughts

Given the tough environment in 2020 March, I believe 8% yield and 30% gain in share price is very possible if the shares were bought during that period. 

As such some laggards would still be around even in April. The chances of finding them is highly possible. 

However, if we were to use the share price on first trading day of 2021, I believe it is highly impossible

 

Screening Results (File can be downloaded on Investingnote at this link)

Just in case the names are too small here are the names

1.       Lung Kee Bermuda

2.       Asian Pay Tv Trust

3.       Multi-Chem

4.       Global Inv

5.       Pan Hong

6.       Yanlord Land

7.       Powermatic Data

8.       PNE Industries

9.       FSL Trust

10.   Lion Asiapac

11.   KepPacOakReit USD

12.   Japfa

13.   CromwellReit EUR

14.   PTR ADR US$

15.   Fu Yu

16.   Sin Heng Machinery

17.   EliteComREIT GBP

18.   SIIC Environment

19.   China Intl

20.   ValueMax

21.   China EverBright

22.   YHI Intl

23.   Advancer Global

24.   Hafary

25.   Maxi-Cash Financial

Applicable Stocks

Multi-Chem (IT Business)

Pan Hong (China Property Development)

FSL Trust (Shipping Related)

Lion Asiapac (Steel Trading)

KepPacOakReit USD (Office Reit in US)

YHI International (Tyres distribution)

Maxi-Cash Fin (Pawnshop, Licensed Moneylending)

 

While these companies have passed the mark this time round, for them to pull it off again, they will have to raise their yield and share price by 30% to achieve the target again. Whether that is possible will have to depend on whether their value has been fully realized and their business fundamentals. It is interesting to note that no big caps / Mid-caps are on the list as the 8% yield proves to be a major hurdle.

However, this gives a good indicator to the chances of pulling the 30% gain off. Which true enough, proves to be rather low.

Closing Thoughts

Backwards looking is easy, especially when things are on a recovery trend since March last year. However, to have the conviction to purchase mid and large caps in those times could proved to be very difficult. As such to purchase a couple of names that most would not have heard of, can only prove to be even harder.

Having said that, there are a few names in the list worth taking a look at.......