When it already give DY 8%, provided fundamentally good, directors credible, business won't be much affected by changing circumstances => good buy. DY 8% at 1.40, meaning DPU 11.2sen. If first buy at 1.40, DY 8% Next buy say 10% less at 1.26, DY is 8.89% Next buy at another 10% less at 1.13, DY will be 9.91%.
So if you want to play safe, buy 10 lot at 1.40 => DY 8% Buy next 10 lot at 1.26, total 20 lot, average cost 1.33 => DY 8.42% Buy next 10 lot at 1.13, total 30 lot, average cost 1.26 => DY 8.9% Buy further 10 lot at ........... => DY ? %
Please read carefully and understand the logic, you will never lose money on this counter. You should know better why you want to buy into this counter, definitely is dividend play with long term passive income.
It has been long time, even after the recent big correction, I cannot find a generally concluded good company with 8% yield because good fundamental, high div yield and share price will find equilibrium point by themselves. Exception would happen at odd time such as big bear market.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
wwwcomment
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Posted by wwwcomment > 2015-01-11 09:47 | Report Abuse
Say easy. Do didfi ult.