All about Dividends

[DevilPlate]

My dividends will hit record high over last year's record. I have 1m Asti shares written off last year due to delisting and suspension with last traded price of 1.4c.

This year it just announced a dividend of 0.45c amounting to $4,500 or 22.44% on my cost There were 2 off market deals this month at 2.8c against my holding cost of 2c. Hopefully the deal would trigger a takeover.

Whats your ave cost? 1M share unit is no joke. HNWI

 

[henrylbh]

Whats your ave cost? 1M share unit is no joke. HNWI

What a joke that 1m shares is HNWI? Did you not understand that my cost is 2c per share?

 

[Compfix]

thank you..

 

[homer123]

Q12023 Dividend / interest earned

 

[Nofear40]

https://investmentmoats.com/financi...et-not-good-retirement-risk-management-model/

 

[limster]

https://investmentmoats.com/financi...et-not-good-retirement-risk-management-model/

Nothing new in his article. But good that he states it clearly so that its easier to respond to specific points. I'll probably take some time to come up with something, but here are 3 responses to the good points he raised.

1.Dividend investing is not a magic bullet strategy. Everyone agrees with that. At the end of the day dividend investing, like growth investing or whatever, involves an element of stock picking. There are below average stock pickers and above average stock pickers. This applies to growth investors, day traders, value investors, or dividend investors etc. It really has nothing to do with 'dividend investing' but with the ability of the investor. If a dividend investor ignores FA metrics like free cash flow, price to book, debt ratios, and simply buys the stock with the highest yield, he's just a bad investor, not a dividend investor.

2. Dividend investing doesn't have a long enough track record. In one sense, he is correct, but how many years data is enough? I feel that there is sufficient data for me to be comfortable with the strategy, though others may disagree.

3. Dealing with income volatility. Fully agree you must be prepared to deal with income volatility. I see many dividend investors keeping blogs where they can track their dividend collected across many years, many types of markets and economic conditions. Using this data they can plan accordingly. For LEAN FIRE, it could cause a problem but for FAT FIRE, less of a problem as you can deal with income volatility by spending less that year, for example, 2020 dividends went down 20% for me, but I didn't go for overseas holidays so I saved a lot.

4. Effort to manage portfolio. Umm, you can read DW's blog to see how often he does buy/sell trades. The answer: Not very often. He's mostly posting pics of food from restaurants in REITs he owns. Frankly managing a rental property takes more effort (not to mention a crypto portfolio...).

 

[homer123]

200k annual dividend

 

[Belle69]

200k annual dividend

His cost basis very low..thats key

 

[homer123]

His cost basis very low..thats key

He bought big during GFC... Not many has his gut

 

[limster]

His cost basis very low..thats key

He bought big during GFC... Not many has his gut

Thats another way of saying that you should buy dividend stocks when they are undervalued
Of course, even if you buy during GFC, you still have to buy the right stock. If you bought REITs, you are probably safe because many of them were around $0.50, and projected dividend yield >10%.

With that sort of prices, who wouldn't want to buy? You just needed to have the cash. I was lucky I was net cash because I was saving up to buy a condo, end up using the cash to buy stocks.

 

[homer123]

Thats another way of saying that you should buy dividend stocks when they are undervalued
Of course, even if you buy during GFC, you still have to buy the right stock. If you bought REITs, you are probably safe because many of them were around $0.50, and projected dividend yield >10%.

With that sort of prices, who wouldn't want to buy? You just needed to have the cash. I was lucky I was net cash because I was saving up to buy a condo, end up using the cash to buy stocks.

You are lucky.. I was completely out of the market for more than 10 years. I don't even know what is reit until 2015 when I read Ak71 blog.

 

[Belle69]

He bought big during GFC... Not many has his gut

You are right.

I am accumulating DBS for several years didn't dare enter during C19 when price was so low.

Still hanging on 12000 shares at high 20s average price.Cannot buy anymore!

 

[greythorne]

Can ask how to buy DBS shares? Can buy using IBKR?

 

[reddevil0728]

Can ask how to buy DBS shares? Can buy using IBKR?

Can if you have the account with the right entity

 

[sohguanh]

Decide to restart my journey into SGX dividend paying stock after a hiatus for 15 years? due to need to start and feed young family. Now they will soon earn their own monies so it is time I come back again. A few reasons attract me

1. Minimum board lot is now at 100 instead of previously 1000
2. Custodian account that offer super low comm fees
3. More newer brokers appear on the scene so more choices
4. Appearance of SGX listed ETF

I decide to also go into blue chip dividend counters. The familiar 3 local banks and others. Anyone existing shareholder for years can vouch for them confirm will not delist lose monies?

1. DBS
2. OCBC
3. UOB
4. Comfort Delgro
5. Singtel
6. Keppel Corporation
7. Sembcorp
8. SGX
9. SIA
10. Wilmar
11. Venture
12. Jardine C&C
13. City Development
14. Seatrium

 

[homer123]

 

[limster]

More important than the absolute amount is that he says his dividend has grown by 12% YoY. I got that from his blog. I do read his blog but I can't bear to watch his youtube videos - this video in particular is audio only so 'watch' is probably the wrong word.. seriously most schoolchildren make videos for their school presentations that are higher quality than this. He should stop playing computer games and use the time to learn video production

For reference, DW reports his 3Q2023 dividend, increase is 18.7% YoY so thats consistent. My own portfolio is looking at a roughly 20% dividend increase.

If interest rates and inflation rises, it is important to hold stocks that are able to raise prices, earn more profit and pay more dividends! Power of CD!

 

[homer123]

More important than the absolute amount is that he says his dividend has grown by 12% YoY. I got that from his blog. I do read his blog but I can't bear to watch his youtube videos - this video in particular is audio only so 'watch' is probably the wrong word.. seriously most schoolchildren make videos for their school presentations that are higher quality than this. He should stop playing computer games and use the time to learn video production

For reference, DW reports his 3Q2023 dividend, increase is 18.7% YoY so thats consistent. My own portfolio is looking at a roughly 20% dividend increase.

If interest rates and inflation rises, it is important to hold stocks that are able to raise prices, earn more profit and pay more dividends! Power of CD!

Not going to critic his yt video because my standard is probably worse than him .. Anyway, my Y-o-Y investment income also increase >25% after putting >200k USD in bond etf last Nov/Dec.. I think bonds will be obligated to pay their interest and hence stable income for investor

 

[limster]

https://singaporeanstocksinvestor.blogspot.com/2023/10/2023-passive-income-banks-reits.html

ASSI has reached $200k dividends YTD, which means his dividends are still growing even though he has FIRE and is supporting his parents (and has monthly car expenses as he owns a BMW).

I look at ASSI as an example of a "successful" dividend strategy. He has managed to choose stocks that are able to increase their dividends over time. When I retire, I also hope that my passive income grows every year on average.

 

[limster]

Time for the annual dividend update.For 2024, I think my dividend growth will be slowing down because I have been putting a lot of free cash flow into T-bills as prices look high after the recent rally. Maybe if there is a correction I will have an opportunity to buy more equities.