Brokers' take

Singapore stocks UOB Kay Hian, Jan 12

We seek shelter in selective dividend plays in view of volatility. Our focus is on stocks declaring final dividends soon or with potential special dividends as well as selected Reits (real estate investment trusts). Our key dividend picks include Venture, M1 and Ascott Residence Trust (ART).

Within our coverage, we note selected stocks which are expected to release Q4 2015 results with lumpy final dividends. Under this category of stocks, we look for companies with sustainable dividends and dividend yield of at least 3 per cent. Stocks we like in this basket include Venture, M1, ART and ST Engineering. Within these stocks, our preferred pick is Venture as we observed in the last two years, the ex-date adjustment tends to be lower than the final dividend per share of 50 Singapore cents/share. In addition, we like Venture for its US dollar-based revenue as well as its inexpensive valuation.