Thursday, March 16, 2017

The reasons why YTL Power International is my #1 pick

In 2014, I posted a couple of videos of Mr Francis Yeoh, the Managing Director of YTL Corporation. I didn't know why I posted those videos then, but, I know it now.

Link to the videos: 打造神國企業 - 楊肅斌

As I have said before, YTL Power International has plenty of Cash and it has been paying a dividend of RM0.10 per year for the last 3 years. I mentioned that 2 points make a line and 3 points make a trend; hence, I expect YTL Power International to continue to pay a dividend of RM0.10 per year and that would translate into a Dividend Yield of 6.76% at yesterday's closing price of RM1.48.

YTL Power International is currently facing some headwinds such as the dispute with TNB (Tenaga Nasional Bhd),

Read: 'TNB wants market rate for deal'

But, this is precisely the time to buy YTL Power International as what Warren Buffett said,

1. Buy great businesses when they are trading at fair or better prices.

2. This occurs when short-term traders become pessimistic