[Latest 2021 Dividend Yields Stock]

Please see the latest analysis of UOADEV yield here:

https://malaysiainvestment88.blogspot.com/2021/01/latest-klse-best-dividend-stock-updated.html

There are 2 listed companies under UOA - UOA Dev and UOA REIT. Both were badly affected by Covid-19. But the Malaysian property development sector seemed to have recovered as illustrated by the charts below taken from my article Will the Malaysian Property industry turn around by 2024?  Does it mean good news for UOA Dev and UOA moving forward?

UOA Dev is of course part of the UOA Ltd group. If you want more details about UOA Dev or a valuation of UOA Ltd, go to Is UOA Ltd one of the better SGX stocks?

Wow, 20sen div ...

The key question is whether you should buy UOA that owns/controls UOA Dev and UOA REIT or are you better off buying UOA Dev or UOA REIT drieclty. Note that UOA currently depends on UOA Dev and UOA REIT for its earnings. 

I am a fundamental investor so I don't trade. I know many traders use technical to gauge market sentiments. Let me give the traders another data point. 

I blog about value investing and I do case studies where I analyse and value companies. I think that there must be some interest in a particular company when it becomes one of the top searched case studies for the past month or so. So for those trading on sentiments, the UOA Ltd group came up in my top 10 list in my blog. I will leave you to decide whether this has any use from a technical trading perspective. 

But if you want insights into Bursa listed companies go to Are these outstanding stocks - what to consider? (Bursa Malaysia)

If you know which stock will give the best return, you would be an idiot not to invest all your money into this one stock. The reality is that we cannot see the future so we hedge buy spreading our investments to several stocks. In other words, we have a stock portfolio.

But this works only if we have a diversified portfolio - the stocks in the portfolio are not correlated to one another. How do you select the stocks to achieve the diversity?

We know that if you have 2 bank stocks such as Bursa Affin bank and Maybank in the portfolio, it is not a diversified one. What if we have Affin and UOA Dev a Bursa property company? Will we then have a diversified portfolio?

The chart shows the ROE trends of Affin and UOA over the past 7 years. There is a 81% correlation between then. This mean if statistically that changes in Affin ROE can explain 2/3 of the changes in UOA ROE. This is significant

So is having Affin and UOA meant that it is not a diversified portfolio?