Cerebos Pacific and Innotek with estimated dividend yields of 5-10%.   Stock market volatility is likely to continue for the next few weeks and for some until the end of Q3-2010.  Contributing to this volatility now would be low stock market volumes, uncertainty about the debt problems in Europe and slowed than expected GDP growth from the US and China.

The weaker than expected economic numbers means that Central Banks will likely keep interest rates low at least until the middle of 2011.  Stocks which are currently on low undemanding valuations are an attractive investment.  However, you have to expect volatilty in the short term.  For those who cannot stomach this volatility, you should be sidelined or look for stocks with lower Betas.  I mentioned that I wanted to create a dividend yield portfolio and started this with Innotek and then Cerebos Pacific.  I am now adding AdamPak to this list.  This is not for trading but for yield and better yield than what you can earn from bank deposits.

The dividend yield chart above shows that the stock has consistently delivered decent dividend yields over the last 4-5 years.  The spike in dividend and yields in 2006 was because the company wanted to utilise its tax credits before they expired.  Excluding this, the company seems to be paying out about two thirds of earnings as dividends.  The Q1-2010 results showed a strong recovery with revenue higher by 60% to US$15.4mn while net profit rose 262% to US$2.26mn.

More on the Company can be found in our Top Picks premium section.