Dividend investors, if you were to start as a beginner, what will you do?

[beta93]

btw im not saying all dividend paying companies are no good. im jus saying i dont see a reason for an investor to specifically pursue a dividend strategy.

1. i dont think any study has ever found a link between the action of paying dividend and better return.
2. if u r in the accumulation phrase, why would u wan to cash out ur position for no purpose only to incur transaction fees re-investing those dividends
3, if u r in the decumulation phrase, u can achieve the same result by selling your stocks. and u can sell the amount that u need exactly, instead of letting the amount be determined by the dividend paying companies.

You should read Benjamin graham book intelligent investor, recommended by Warren Buffett as the best investing book ever written. Even in the book they tell people to look for companies that pay a dividend

That's the so called study that you want and it's a study that people can replicate even today for over 100 years

 

[beta93]

btw im not saying all dividend paying companies are no good. im jus saying i dont see a reason for an investor to specifically pursue a dividend strategy.

1. i dont think any study has ever found a link between the action of paying dividend and better return.
2. if u r in the accumulation phrase, why would u wan to cash out ur position for no purpose only to incur transaction fees re-investing those dividends
3, if u r in the decumulation phrase, u can achieve the same result by selling your stocks. and u can sell the amount that u need exactly, instead of letting the amount be determined by the dividend paying companies.

Dividend does not have a correlation with returns you are not wrong, swedish investor made a video recently about what has a correlation with returns, one of it being rising eps trend and being in hyped industries such as healthcare and tech

 

[Mephist0pheLes]

I buy both growth (IWDA) and dividends stocks to balance out the wait. If iwda doesn’t go up (it might even be down) during my retirement, at least i get some dividends without selling at a loss.

U r still in the free dividend fallacy. Jus google and read up about the fallacy.

 

[Mephist0pheLes]

You should read Benjamin graham book intelligent investor, recommended by Warren Buffett as the best investing book ever written. Even in the book they tell people to look for companies that pay a dividend

That's the so called study that you want and it's a study that people can replicate even today for over 100 years

A book is not a study. Unless it referenced a study that support its claim? If so, which papers were referenced?

 

[thretiredDad]

If want to be super rich dividend investing is not the way. It is to trade for capital gains and if this is so easy why so many ppl still need to work? That is why to achieve something on top of full-time job for me is dividend investing.

It is true
capital gain is the game
I use dividend from my portfolio to pay for leverage
To maximise my capital gain profit
but lately margin interest is so high
that even dividend cannot cover

 

[beta93]

A book is not a study. Unless it referenced a study that support its claim? If so, which papers were referenced?

There a multiple sources of statistics inside since 1927 I think can't remember exact years,you just download e copy and flip through it

 

[limster]

https://singaporeanstocksinvestor.blogspot.com/2023/05/passive-income-as-much-as-earned-income.html
If AK can do it, so can you!

Even though I don't agree with everything he says in his blog, there are also things I agree with, like OCBC+UOB+DBS are good shares to hold!

Some believe there is only one way to invest, I believe there are many different ways - if only one way then most of the finance industry wouldn't exist

There are many ways to achieve FI, pls DYODD and develop your own strategy!

In terms of how to DYODD, reading anonymous comments on the internet (like my post) is pretty low on my list!

A better method would be read 'good' investing books. I have one rule for a good finance/investing book as there is a lot of rubbish out there. It must be good enough that there is a 2nd edition or sequel, which suggests that the strategy has stood the test of time.

 

[thretiredDad]

U r still in the free dividend fallacy. Jus google and read up about the fallacy.

Some investors were taught to invest with money they don’t need

when they started with this mentality
they were already prepared to lose all
and therefore capital gain or loss is secondary
so why not invest in high dividend yield shares
to have a monthly return from money they dont need

but if these money they don’t need
can have monthly dividend and ALSO big capital gain
isnt that a bonus?

Sounds good right?

 

[thretiredDad]

You are welcome to pursue a non-dividend strategy. For me I have explain the wait for that gain can be years ! I thus prefer to be paid dividends as I wait that is my strategy which you don't buy it is ok. In this world many strategies just find one that you are happy with becuz at the end of it all those are your own monies you take full responsibility for your strategy.

If your expectation of gain is years
why don’t you consider buying a bond?
at least they return you in par on maturity

 

[loveboon]

U r still in the free dividend fallacy. Jus google and read up about the fallacy.

You are the typical person who thinks that there is only 1 way and the only way to invest. Nothing much to discuss if that’s the case.

 

[TehSi99]

So far, i have seen and heard more success stories with dividend investing than other strategies of investing or stock trading.

 

[thretiredDad]

So far, i have seen and heard more success stories with dividend investing than other strategies of investing or stock trading.

Usually it is because
human choose what he want to read and believe

for me I always believe
stock market is a zero sum game
if everyone believe and invest in a single strategy
who will win?
so it is better to have a well spread and balance of strategies used
among all the investors

but if I have a portfolio of REITs
and I need sheeps to push higher for me
why not I start sharing my performance
and my investment strategy
to convince the rest

 

[beta93]

https://singaporeanstocksinvestor.blogspot.com/2023/05/passive-income-as-much-as-earned-income.html
If AK can do it, so can you!

Even though I don't agree with everything he says in his blog, there are also things I agree with, like OCBC+UOB+DBS are good shares to hold!

Some believe there is only one way to invest, I believe there are many different ways - if only one way then most of the finance industry wouldn't exist

There are many ways to achieve FI, pls DYODD and develop your own strategy!

In terms of how to DYODD, reading anonymous comments on the internet (like my post) is pretty low on my list!

A better method would be read 'good' investing books. I have one rule for a good finance/investing book as there is a lot of rubbish out there. It must be good enough that there is a 2nd edition or sequel, which suggests that the strategy has stood the test of time.

Idk about those books but I prefer books recommended by Warren Buffett,peter lynch

 

[Mephist0pheLes]

You are the typical person who thinks that there is only 1 way and the only way to invest. Nothing much to discuss if that’s the case.

Not really, its the math that people are stuggling to see.

$1000 in stocks vs $950 in stocks and $50 in cash are both $1000.

But for some reason ppl prefer the latter over the former puzzles me and many other logical investors.

Altho im not surprise by your reaction. Many prominant ppl have tried to point out the fallacy and they are equally confronted by ppl who cant figure out the math.

 

[Trader11]

https://singaporeanstocksinvestor.blogspot.com/2023/05/passive-income-as-much-as-earned-income.html
If AK can do it, so can you!

Even though I don't agree with everything he says in his blog, there are also things I agree with, like OCBC+UOB+DBS are good shares to hold!

Some believe there is only one way to invest, I believe there are many different ways - if only one way then most of the finance industry wouldn't exist

There are many ways to achieve FI, pls DYODD and develop your own strategy!

In terms of how to DYODD, reading anonymous comments on the internet (like my post) is pretty low on my list!

A better method would be read 'good' investing books. I have one rule for a good finance/investing book as there is a lot of rubbish out there. It must be good enough that there is a 2nd edition or sequel, which suggests that the strategy has stood the test of time.

Thanks Bro. I will start building up my dividend portfolio this year. These books will be useful.

 

[Mephist0pheLes]

 

[Trader11]

Not really, its the math that people are stuggling to see.

$1000 in stocks vs $950 in stocks and $50 in cash are both $1000.

But for some reason ppl prefer the latter over the former puzzles me and many other logical investors.

Altho im not surprise by your reaction. Many prominant ppl have tried to point out the fallacy and they are equally confronted by ppl who cant figure out the math.

Bro I get what you mean. In reality, the reits can fall 50% and your yield will not be enough to cover. But you can buy more or give up on this reits...so the risks is still there

 

[thretiredDad]

Not really, its the math that people are stuggling to see.

$1000 in stocks vs $950 in stocks and $50 in cash are both $1000.

But for some reason ppl prefer the latter over the former puzzles me and many other logical investors.

Altho im not surprise by your reaction. Many prominant ppl have tried to point out the fallacy and they are equally confronted by ppl who cant figure out the math.

I prefer companies that gives dividend

Dividend in pocket is real cash
Share price $100 on cd
dividend $5
xd price $95

if after receiving div or xd
share price goes back $100
You gain $5 in pocket
or they say free dividend

I hate growth companies
that don’t give dividend
tell shareholders company reinvest dividend
to grow the company
but director and owner ownself take 5-10 months bonus every year
if shares price keep going up
over 3-5 years
from $100-$120 or to $150
as shareholders we are happy
but when unforeseen crisis comes
or recession
All companies share prices crash
this growth company from $150
become $50 or $80
all the promises of ”dividend reinvestment”
shareholders Become poorer
but only the director or the CEO
Bonus and remuneration in pocket

and companies they have been giving dividend
their shareholders can at least say
heng i collected the dividend
last 5 years

 

[thretiredDad]

Bro I get what you mean. In reality, the reits can fall 50% and your yield will not be enough to cover. But you can buy more or give up on this reits...so the risks is still there

Dividend received is profit or free dividend
only when your price goes back to your cost price
Not all REITs are good
There are good REITs
there also also bad REITs

 

[Mephist0pheLes]

Bro I get what you mean. In reality, the reits can fall 50% and your yield will not be enough to cover. But you can buy more or give up on this reits...so the risks is still there

no lah, my point is not a reit can fall more than yield. any stocks can fall alot and takes a long time to recover.

my point is that:
Stock A falls from $1000 to $500. i have $500 now
Stock B falls from $1000 to $500, it then pays $5 in dividend, so the price falls further to $495. i now have $500 in total.


If you cannot handle the volatility or decides the company is no longer worth investing and cash out everything, u have $500 in cash in both cases.

If you decides to stay invested in this company, and pump back your $5 dividend into the stock, you have $500 worth of shares in both cases.

If you decides you need $5 to spend, you sell $5 worth of stock A and now u have $495 in shares and $5 in cash in both cases.

so why is $500 in the second case better than the $500 in the first case? Especially if u r in the accumulation phrase.