Dividend Stock Review: MIIF

Hi Drizzt,

I am currently starting to look into investing in dividend stock and find that you keep a great website for people like us.

I always find moats like News, Telecom, Postal are good for long term, low risk, steady return investment.

My question is: As of now, which is a good investment for Utilities? Cityspring price dropped drastically recently, but given the current price, dividend yield % looks good.
But looking at your Dividend Stock Tracker, MIIF looks a better and safer investment.

Would you please care to advise?

Hi Benjamin,

I don’t think cityspring is good. its got a management problem. MIIF have a bad management record. However, its balance sheet looks clean. the worry is when a credit crisis hits, its underlying toll road, port and broadcast station can gain refinance.

You may want to consider CMPacific >> http://www.investmentmoats.com/singapore-stocks/investing-in-the-economic-moat-of-toll-roadschina-merchant-pacific/

Hi Drizzt,

thank you for your immediate response.

This may not be for this column but may I ask for your opinion which Singapore stocks are currently best for dividend yield investment for income?

Hi Ben,

Recommendations are hard. It depends on how you form your portfolio. Over here we like to form our core group with safe predictable dividend players that we understand the risks well. This group for me is Starhub,Singtel, First REIT,VICOM, SIA ENGG. They are by no means cheap. Look at how well they hold up.

Then we supplement it with high yielders typically more than 8%. You have your MIIF, SP Ausnet, Aims AMP, Sabana, second chance and all. They are still not cheap either.

the bottom line is that you gotta understand your dividend stocks and what is their role in your portfolio.

Thank you Drizzt.

Appreciate your advice and your updating emails. Please keep it up and hope to meet you someday. Cheers!

no problem