Saturday, 14 April 2018

CapitaLand: To Sell or Hold

CapitaLand's dividend has been on the uptrend in recent 5 years, albeit in small incremental steps. Based on the latest dividend declared, dividend yield has surpassed 4% which is the minimum I set for a stock to enter my income portfolio.

Hence CapitaLand has officially join my income portfolio as its newest member. While it's nice to see the dividend growing, I actually consider CapitaLand as a growth stock too and I'm waiting to see its much delayed upward trajectory of the share price happening.

It has been doing so many things right such as the recent Ascott's deals, the launch of its own StarPay e-payment service, management deal for the Phnom Penh mall, etc.

Yet the share price doesn't reflect it.

This can probably be explained by the fact that the investments need time to reap the rewards. However the stock market is a forward looking one. I'm sure we will see a stunning run up of CapitaLand's share price soon.

I'm in no hurry to sell.

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