I have used Excel spreadsheet to list a few listed companies in the Singapore stock exchange.
My selection criteria are very simple.
I choose those companies that pay consistent dividend, and I know the business well enough.
After I have selected my stocks of about 10 companies, I list down the buying price, holding price and selling price.
This is very simple to do.
I will buy when the dividend yield is 7%, sell when the dividend yield is 3% and hold when the dividend yield is 5%. However for large banks, I am comfortable with buying at an yield of 5%, hold at 4%, and sell at 2.5%.
That means when the average dividend for the past 5 years is 7 cents, I will buy the stock at $1, sell when the share price reaches $2.33 and hold the stock when the share price is $1.40.
The reason I buy at $1 is because the dividend is 7 cents, and that means 7% return.
The reason I sell at $2.33 is because the dividend is still 7 cents, and that means I get only 3% return.
The reason I hold when the price is $1.40 is because the dividend yield is 5%.
That means I buy the shares at $1, and when the share price keeps on going up until $2.33, I will sell.
If there is a change in business environment, then I will sell at any price, even at a loss.
This simple and clear stock market strategy contains both entry and exit price.