8 people like this.

67 comment(s). Last comment by Dolly_Chai 2017-02-03 16:20

arowana

13 posts

Posted by arowana > 2017-01-17 17:14 | Report Abuse

Is there any master in stock market???? You must be insane!

The master of today might be turn into loser of tomorrow!

LOL

bracoli

2,579 posts

Posted by bracoli > 2017-01-17 21:21 | Report Abuse

To all, tonorrow can c c magni loh..
Good div mahh..

stockraider

31,556 posts

Posted by stockraider > 2017-01-18 10:53 | Report Abuse

Posted by datuk > Jan 17, 2017 03:32 PM | Report Abuse

I think two criteria need to be met before could qualify as dividend stock:

a) The annual dividend yield must more than the current fix deposit rate.
b) The dividend yield on (a)must be maintained for 5 years.

perhaps, with this definition, your investment mind won't be confused and you will think rationally.

RAIDER ADD MORE CRITERIA LOH....!!

C)THE SUSTAINABLE CASHFLOW MUST BE MORE THAN DIVIDEND PAYOUT.
D) PREFERABLY PROFIT FAR EXCEED DIVIDEND PAYOUT LOH...!!
E) DEBT LEVEL LOW LOH...!!

CFTrader

812 posts

Posted by CFTrader > 2017-01-19 09:33 | Report Abuse

in Malaysia, I can offer you advice of getting return 6% with minimal risk (near /absolute 0.01% risk) without charging you any money.

Go to PNB and get your money vested in Amanah Saham if you can't take any risk.

Sincerely,
CFTrader

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:47 | Report Abuse

As deposit accounts pay very low interests or next to nothing, dividends on shares seem attractive. But you'll need to choose carefully.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:49 |

Post removed.Why?

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:50 | Report Abuse

So just buying the shares with the highest dividend, without researching how safe that dividend is, can be a mistake.

There are now a huge range of high yielding blue chips but it is best to look for a dividend that is less likely to be cut even if that company's profits fall.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:52 | Report Abuse

A high yield alone is not synonymous with a decent dividend.

If you carry out thorough research and pick the right shares, you will get better value for your cash than by leaving it in a savings account.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:52 |

Post removed.Why?

3iii

13,179 posts

Posted by 3iii > 2017-01-19 09:54 | Report Abuse

Once again, for those who invest for yield or income - either Dividend Yield Investing or Dividend Growth Investing - STOCK SELECTION is still the key.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 10:01 | Report Abuse

Search out for those companies that have a good chance of sustaining or even increasing their dividends.

If you are knowledgeable, you can even anticipate and avoid those companies that may skip or reduce their dividends in the future.

Stock selection is the key to dividend yield investing.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 10:16 | Report Abuse

Some investors look at historic yields; some at forecast (or "prospective") yields.

But either way, those yields can be unexploded mines, lurking for the unwary. Looking at yield on its own, in short, can quickly introduce you -- painfully -- to the meaning of the term "yield trap".

3iii

13,179 posts

Posted by 3iii > 2017-01-19 10:17 | Report Abuse

The yield trap is simply explained.

You buy a share, attracted by the high yield. But the dividend is then cut, or cancelled -- leaving you without the anticipated income. Worse, unsupported by the payout, the share price usually falls as well, leaving you also nursing a capital loss.


Let's see it in action.

Company A pays out 9 pence a share, with shares changing hands for 100 pence per share. So the dividend yield -- which is the dividend per share, divided by the share price, and multiplied by a hundred to turn it into a percentage -- is 9%.

But that 9 pence is unsustainable. Company A then halves its dividend, slashing investors' income. What happens to the yield? If the share drops to -- say -- 80 pence, the historic yield the becomes 5.6%. The "yield on cost" figure, of course, is 4.5%.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 10:19 | Report Abuse

Dividend cover

How, then, should investors spot potential yield traps? The most obvious reason for slashing the dividend is that the business simply hasn't got the money to pay it.
The business's earnings, in short, aren't large enough to support a distribution to shareholders at historic levels.

Put another way, actual earnings per share aren't sufficiently large when compared to the anticipated dividend per share.

Which is where the notion of 'dividend cover' comes in: earnings per share divided by dividend per share.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 10:20 | Report Abuse

Interpret Dividend Cover with care

Now, dividend cover shouldn't be followed blindly.

Some businesses -- such as utilities, for instance -- can quite happily operate with lower levels of dividend cover than more cyclical businesses.

Other businesses -- such as REITs -- must pay out a fixed proportion of earnings as dividends, so again a low level of dividend cover is the norm.

Still other businesses have very high levels of dividend cover, because they are growing -- and therefore retaining earnings for future investment -- rather than paying them out as dividends.

But as a broad brush generalisation,

- A ratio of close to one is definitely the danger zone.
- A ratio much bigger than two indicates a certain parsimony.
- A ratio of 1.5-2.5 is usually what I'm looking for.

3iii

13,179 posts

Posted by 3iii > 2017-01-19 11:11 |

Post removed.Why?

Dolly_Chai

738 posts

Posted by Dolly_Chai > 2017-02-03 16:20 | Report Abuse

worth to take a look at Zhulian now as the fundamentals have improved and the company is growing to other indo china countries. Can also watch out for Uchitec

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