Analyst Recommends Dividend Plays amid Market Volatility

Wall Street closed lower on Thursday, dragged by the tech-heavy Nasdaq Composite in a disappointment of Facebook’s 4Q21 earnings that missed expectations, triggering the share price of Meta to fall more than 26% last night.

Dow Jones lost 1.45% to 35,111.16 points. S&P 500 plummeted 2.44% and Nasdaq plunged 3.74%. However, Nasdaq Futures recovered about 2% this Friday morning, boosted by solid earnings reports from Amazon and Snapchat.


Given that global risky assets and stock markets are now volatile, to avoid fluctuation, Asia Plus Securities (ASPS) recommends dividend plays as they are expected to outperform the SET 1-2 months after the yearly earnings report.

Many stocks have strong fundamentals and will pay high dividends following 2021 earnings reports, but some dividend plays, including SAPPE, THANI, SCCC, NER, and SCC, have not rallied much yet. ASPS therefore favors and recommends “BUY” for those five equities.


Sappe Plc. (SET: SAPPE) (Target Price: THB35.00) – Profitability is likely to soar in 1Q22-2Q22 as the beverage industry enters its high season (summer). SAPPE is projected to introduce cannabis and hemp products, boosting the company’s share price and domestic sales significantly. Normalized profit is expected to increase by 16% YoY to THB504 million in 2022. SAPPE now has a net cash balance of THB1.6 billion. It is planned to expand organically and to provide an average dividend return of 4.5% per annum.

Ratchathani Leasing Plc. (SET: THANI) (Target Price: THB5.00) – Net profit in 4Q21 is predicted to increase greatly above 3Q21, as loan growth will fully offset the high credit cost. Net profit is expected to increase 12% YoY to THB2,026 million in 2022. THANI has a PBV of 2.0x, which is 1SD below the five-year average. Dividend yield is estimated to be 5% per annum.

Siam City Cement Plc. (SET: SCCC) (Target Price: THB210.00) – Earnings are predicted to increase by 5.7% QoQ in 2021, as shared profit from LANNA increases due to higher coal prices. After COVID-19, the economy is recovering, allowing SCCC to raise cement prices. SCCC is investing in new projects with the goal of reducing costs and generating revenue in the near future. The dividend yield is anticipated to be 5.60%.