Krungsri Capital advises investment in 11 high-dividend Thai stocks

Investors have been advised by Krungsri Capital Securities (KCS) to consider purchasing shares from 11 high-dividend (HD) stocks, which are projected to yield over 2% annually. This move is expected to result in increased capital gains from their investments in the initial two months of each year.

These HD stocks have historically outperformed the broader Stock Exchange of Thailand (SET) in January and February. The market expects that these companies will maintain high dividend payments, reflecting the annual operating results of the preceding year.

According to a study by KCS, the SETHD group’s stocks have consistently paid dividends once or twice a year over the last decade. On average, SETHD stocks have provided a return of 1.47% in the first quarter of eight out of the past ten years.

KCS recommended list of 11 HD stocks for investors to purchase includes both big-cap and middle-cap stocks. This selection is based on the stocks’ capacity to provide dividend payments exceeding 2% in the fiscal years 2023 and 2024.

The chosen stocks are also expected to show a growth trend, and stable cash flow, or align with KCS’ main investment theme for the year. This includes those in an interest rate peak theme and stocks predicted to recover as the Thai economy expands by more than 3.0% this year.

Big-cap stocks in the list include AP Thailand (AP), Land and Houses (LH), Srisawad Corporation (SAWAD), Ngern Tid Lor (TIDLOR), WHA Corporation (WHA), Intouch Holdings (INTUCH), and Advanced Info Service (ADVANC). The mid-cap stocks recommended are MC Group (MC), North East Rubber (NER), SC Asset Corporation (SC), and Sansiri (SIRI).

KCS’ research team studied the dividend stock statistics of these 11 companies for the past eight years. They found that investors who purchased these stocks two weeks before their XD (excluding dividend) date and sold them on the day the SET posted such a sign, saw positive returns from their investments.

Notably, stocks that generated high returns during that period include TIDLOR (5.4%), ADVANC (3.7%), INTUCH (2.2%), and WHA, AP, SIRI, MC, and NER, which offered returns ranging from 1.2-1.5%, reported Bangkok Post.