Best2Invest’s dividend stocks: As the end of the year approaches, a common concern by investors, both veterans and greenhorns, is determining the best stocks to carry in their portfolio for the upcoming year.
Best Philippine Stocks for 2021: Dividend-yielding Stocks
Happy new year! Happy new year, indeed! We will have a brand new year very soon, leaving behind us the year of the covid-19 pandemic. The virus is still lingering around us but perhaps the worst is already over.
Many stock investors think that the year 2021 is the year for stocks to recover from the effects of the pandemic. Most index stocks and second liners have actually returned to their pre-pandemic prices, some even got higher. The PSEi is now trading at more than 19x FY21F P/E (vs 17x historical average) and hence many brokers advise caution at buying index names as these are subject to downside risks.
If that’s the case, could we still build a portfolio of “best stocks” by this time? The answer is MBA-ish: It depends. It depends on your investment objective and your risk appetite. Yes, there are still a few stocks that offer significant upside, say MEG (Megaworld Corporation) and FLI (Filinvest Land, Inc.) but, to mitigate downside risks, select those that are defensive in nature (see Defensive Stock at https://www.investopedia.com/terms/d/defensivestock.asp), like GLO (Globe Telecom, Inc.), TEL (PLDT, Inc.), PGOLD (Puregold Price Club, Inc.), and CNPF (Century Pacific Food, Inc.).
To me, the best Philippine Stocks for 2021 are the dividend-yielding stocks.
My Dividend-yielding Portfolio
I started building up my medium- to long-term stock portfolio in October 2020, having sold all my long-term holdings mid-March. Between March and October, I shifted from “investing” to “trading”, holding on to stocks for no longer than a month. As news of covid vaccine started pouring in, I began rebuilding my long-term dividend-yielding portfolio.
Below is the composition of my dividend-yielding portfolio.
| Symbol | Stock | Current Price | 2020 Div | Div Yield |
| AP | Aboitiz Power Corp | 26.75 | 1.18 | 4.4% |
| CPG | Century Properties Group, Inc. | 0.460 | 0.0126 | 2.7% |
| GLO | Globe Telecom, Inc. | 2.010.00 | 107.99 | 5.4% |
| GMA7 | GMA Network, Inc. | 5.99 | 0.30 | 5.0% |
| MER | Manila Electric Company | 282.60 | 15.09 | 5.3% |
| MPI | Metro Pacific Investments Corp. | 4.18 | 0.11 | 2.6% |
| SCC | Semirara Mining & Power Corp | 14.38 | 1.25 | 8.7% |
| TEL | PLDT, Inc. | 1,350.00 | 77.00 | 5.7% |
My Dividend-yielding Portfolio
You would notice that the table does not include SPC (Salcon Power Corporation), which is one of the highest-grossing tickers in terms of dividends. Well, I failed to catch the name below P9.00 per share; besides, SPC is not that liquid (sour-graping).
Next: Best Philippine Stocks for 2021 – My Swing-trade Portfolio
