hpcp

What about inflation?

2016-07-09 20:59

probability

Dividend investing-low risk, stability

Investment patterns are not the same for everyone. Some people pursue high risk and high returns, while others pursue stability at low risk. The younger investors tend to tend to the first, because the second law is too boring without passion "EXCITEMENT".

Change the argument, I believe that the pursuit of low risk and steady income investors want to make wealth accumulation "growth", and to pursue high risk high return for investors from the stock market "to make money". Both of which are invested in the stock market, but the starting point is not the same, so the effect is not the same, of course.

Method of low risk and stable investment returns tend to choose high dividends of companies for investment. Each year as long as the company continues stable profit and dividend, investors will continue to hold. A lot of people are underestimating the power of this kind of investment law, because they believe that dividend returns are too little and too slow. Choosing the right company, rising returns a year is definitely not the problem, but focuses on the risk is not high, can be said to be a conservative make.

For example, if you buy in 2012 at RM1.00 per share "CSCENIC". FY12 – 12.30 cent,FY13 – 8.00 cent,FY14 – 8.00 cent,FY15 – 10 cent

CSCENIC DIVIDEND CHART - XX

These 4 years, you have been getting 38.30 cent per share dividend. At present, the CSCENIC stock is RM1.37. Therefore, your paper profit was 37 cent per share. In summary, your total return is 75.3%, equivalent to a compound annual growth rate of 15.06% "CAGR".

WINS in such investment law is stable enough, without frequent transactions. 15% for some people, perhaps too little, but too high risks for investors unable to bear, so that stable money is indeed very suitable for, at least, a lot higher than the FD. The short term, may fail to see results, but in the long term, it is a very powerful force. If after a few years of "CSCENIC" the dividend per share to 15cent to you the purchase price of RM1.00, your dividend rate will be from the current 10%, the ascent to 15%. Perhaps you will never sell "CSCENIC". In addition, you can also select the reinvested dividends in the same stocks.

The so-called financial freedom in the hope that one day no longer work and have enough passive income every month to maintain the comfortable life they want. In fact, as long as you know how to manage your money and start early, even if you don't venture can in fact achieve financial freedom. Dividend investing is relatively slow, but stable to get you to your destination.

Many people will ask, how much a person needs, to retire or to achieve financial freedom? If you are single and there was no burden, you can consider target in RM1m. An annual dividend of 6% return, each year you will receive RM60,000, equivalent to RM5,000 per month passive income. If you have a home, cost is also quite large, you can consider targets RM3m. An annual dividend of 6% return, each year you will receive RM180,000, equivalent to RM15,000 per month passive income. Of course, this is just for your reference.

Author filter 20 is currently over 6% of Western Ontario dividend yield stocks, and share with you. Do as good long-term investments, to your own research.

(The 7/8 closing price shall prevail)

1. LIIHEN 8.64%
2. FLBHD 8.57%
3. BJAUTO 7.68%
4. TASEK 7.48%
5. HUAYANG 7.47%
6. YTLE 7.41%
7. CSCENIC 7.30%
8. UCHITEC 7.24%
9. MEDIA 7.19%
10. ECS 7.14%
11. CYL 7.02%
12. MAGNUM 6.96%
13. UOADEV 6.88%
14. STAR 6.79%
15. SHL 6.71%
16. MAYBANK 6.59%
17. CENTURY 6.51%
18. TEXCHEM 6.37%
19. PERSTIM 6.35%
20. TAMBUN 6.29%

2016-07-09 21:02

duitKWSPkita

要稳定，不要乱

2016-07-09 21:03

probability

what about FAVCO?

On those list above, we have to be careful on evaluating the Dividend yield based on very recent payouts as it could be only to sustain the price from dipping too low when poor earnings are released due to foreseen temporary unfavorable business prospect in the near future.

2016-07-09 21:17

Tom

怎么所有人都重复同样的话题。。。。

2016-07-09 22:34

kkgan

tom, you got any different ideas? please do share 。。。。thanks

2016-07-09 22:59

Hiu Chee Keong

At the same time, also be aware that some even though can deliver a good dividend last few years, there is no guaranty that it will continue to do so as the market is constantly changing, for example the commodities industry might able to give a good return in the good old day, but not now.

2016-07-09 23:13

probability

Tom...no use commenting or criticizing...

coz u know CP Teh..
has now become even stronger...thick skin like hippo.
he does not need to disable comments like KYY!lol..

2016-07-09 23:17

sg999

2. FLBHD 8.57%
will they still distribute the same dividen while earning decrease???

2016-07-10 11:28

ganasai

股息投资法 - 低风险，求稳定 unfortunately, dividend payout is depend on company performance. Nobody can guarantee company will good every year. So the risk still there. if really want min risk but higher than FD, only reit is the good way to go.

2016-07-10 11:41

CFTrader

One of the thing that you missed out is the FCF generation power and sustainability.

Some company, like previously MAXIS declared 40cent dividend per year, by taking loan.

So we still need to check their FCF, profit sustainability to ensure that the dividend will continue flow back to investors.

2016-07-10 13:10

CFTrader

UCHITEC was the best example for your method. The FCF is superb, the dividend payout ratio is sustainable, and the EPS is sustainable - for currently.

2016-07-10 13:11

probability

Post removed.Why?

2016-07-10 13:52

meathere

Should be all rounded when choosing a stock. Good and sustained dividend payout year in year out of course is good but like someone mentioned here even past years result will not guarantees the same for the next 3-10 years for example.

Then the share price appreciation should be considered at the same time in choosing the stock to supplement the dividend income. Touch wood if the company somehow due to whatever reasons no longer able to perform (likely dividend and share price will start to dwindle) then is time to move on to another stock. The price appreciation and the dividend combined together than should be much better compared to FD or just targeting high dividend alone stock.

2016-07-10 14:00

gwansoo

Lol, even if you are employed you still facing the risk of getting fired. Lol, this is life, bro.

2016-07-10 14:13

probability

there is a difference between losing future potential earnings compared to losing what has already been earned.

Future is still yet to be written ( you can always get a new job - perhaps even better pay)...but you can never rewrite your past damage.

2016-07-10 20:19

CFTrader

probability, I used to recommend GKENT for it's 5 year earning visibility + 50% dividend payout, but at current price, I think the MOS is become thinner already, hence I'm not recommending it anymore.

UOADEV was my case study 3 years ago. Looking back at UOADEV, it shows FCF, EPS is able to sustain. You can try to look into UOADEV.

PERSTIM is mentioned by our Star sifu - kcchongnz.

HUAYANG investor please take note. The previous Busy Weekly reported Huayang had adjusted their minimum dividend payout rate to conserve cash.

MAGNUM and BJTOTO and STAR ... people do like them for dividend, but to me it's sunset industry.

I might be wrong, and any company I mentioned is NOT a recommendation to BUY or SELL. Thank you.

2016-07-10 21:55

probability

thanks CFTrader...

2016-07-10 23:00

Tigerbeer

Good write, thanks

2016-07-11 09:54

enigmatic

股息投资法好比意大利足球队打法，防守为重，因此失利的机会少。不是不好，只是觉得很难获得大胜利。

2016-07-13 18:05

maomaochong

不可以損失本金嘛，嘻嘻

2016-07-13 18:28

maomaochong

低風險，是很好地

2016-07-13 18:44

Lyo82

I dont mind winning every football match by 1-0. But I hate scoring 3 goals and concede 5 goals at the end.

2016-07-16 10:42

probability

Actually this article from RICHE HO is one of the most beautiful posting I have ever seen....

2016-07-19 20:19