Amid volatility in stock markets caused by the spread of coronavirus to Asia and recently reported to be found in the U.S., Krungsri Securities (KSS) expects SET Index to decline to 1,565 – 1,570 then rebound.
In this kind of situation, KSS has recommended a dividend play on stocks with a high dividend yield. Intouch Holdings Public Company Limited (INTUCH) and Land and Houses Public Company Limited (LH) are KSS’ top pick for the dividend play.
INTUCH (Close ฿59.25, Target Price ฿81.00) – A safe place to invest when the market faces volatility due to a constant dividend payment with a high yield of around 4.5% per annum, which is higher than ADVANC (3.5%). KS asserts that the current share price in the market has yet to reflect the net asset value (NAV) in ADVANC and THCOM with a discount of around 28%, higher than the previous level which was around 20-25%.
LH (Close ฿9.90, Target Price ฿11.50) – The share price plunged in yesterday’s session from the disappointment of LTV measurement which led to a selloff on LH. KS sees that now is the opportunity to buy LH for its high dividend yield. It is expected that a dividend per share for 2H19 would be around ฿0.40/share, reflecting a yield of 4%.