High yield stocks list as at 8th June 2010

In our current market situation, market has corrected significantly and investors are attracted into the market to find value. But due to the current volatile condition, investors should be skewed towards more defensively natured stocks.

Hence, I have decided to spend a substiantial amount of time to practise my FA skills again.

My FA concepts is simple.

1) Must pay more than 5% of dividend yield based on an average of 5 years dividend payout

2) Dividend payout must be consistent over the 5 years.

3) Have a market cap of more than 1 billion.

This simple technique can help to filter out high yield defensive stocks. My filtering is done with the help of Shareinvestor’s subscriptions. Hence, accuracy of the data is checked with due diligence.

Below is the list arranging in the order of market cap.

In the list, Telcos and Reits are the majority in the list which truely protrays its defensive nature.

Most of the listed gives an average yield of 7% based on current price. Which should be attractive for long term investors.

So far, the high yield based on current price is Starhill global Reits.

The last 2 column of the spreadsheet indicates the maxmium price that I should accumulate if I expect my investment to return based on 5% or 8% annually.

* Please do take note that the dividend figures is not indicative of the future dividend payout. It is just an average estimate.