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

[Trader11]

What are the good way to start you dividend portfolio? Do you buy foreign stocks for dividend? What books do you recommend?

 

[Mephist0pheLes]

I started as a dividend investor, in part influenced by ppl like dividend warrior and AK.

If i can restart as a beginner, i wont bother with dividend investing

 

[Trader11]

I started as a dividend investor, in part influenced by ppl like dividend warrior and AK.

If i can restart as a beginner, i wont bother with dividend investing

Having side income is good?

 

[Mephist0pheLes]

Having side income is good?

yea, having side income is good, but dividend is not side income. it is taking your money to pay urself. imagine you are holding $1000 worth of share, the coy pay you $50 dividend, and when it does, the value of the shares will drop by $50. you now have $950 in stock and $50 in cash = $1000. There's no extra income.

treating dividend as side income, gift, interest or bonus is known as the free dividend fallacy.

 

[zeroX26]

yea, having side income is good, but dividend is not side income. it is taking your money to pay urself. imagine you are holding $1000 worth of share, the coy pay you $50 dividend, and when it does, the value of the shares will drop by $50. you now have $950 in stock and $50 in cash = $1000. There's no extra income.

treating dividend as side income, gift, interest or bonus is known as the free dividend fallacy.

If this is true, DBS will still be at $11-$12 level that I bought at donkey years ago liao

 

[sohguanh]

yea, having side income is good, but dividend is not side income. it is taking your money to pay urself. imagine you are holding $1000 worth of share, the coy pay you $50 dividend, and when it does, the value of the shares will drop by $50. you now have $950 in stock and $50 in cash = $1000. There's no extra income.

treating dividend as side income, gift, interest or bonus is known as the free dividend fallacy.

It is not always that way. After xd drop if the stock is good it will rise and then your side income is really extra but for some stock the wait can be very long I do agree. The SGX REIT stocks I hold is at least 10 years and those dividends I collected after deduct my average price based on currently traded price are really side income.

 

[Trader11]

It is not always that way. After xd drop if the stock is good it will rise and then your side income is really extra but for some stock the wait can be very long I do agree. The SGX REIT stocks I hold is at least 10 years and those dividends I collected after deduct my average price based on currently traded price are really side income.

It's reliable. But wouldn't make you super rich over night

 

[sohguanh]

It's reliable. But wouldn't make you super rich over night

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.

 

[Trader11]

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.

What's a good capital to start with reits? 50K?

 

[sohguanh]

What's a good capital to start with reits? 50K?

For my times it just happen REIT start to appear in sgx so most of my REIT are from ipo. Then got rights subscribe and add along the years.

To buy from sgx I dunno everyone capital is different and now REIT is hit real bad so you want to go in buy and wait for also capital gains when they rebound? If just dividends the price of entry usually for me will be after xd.

 

[Mephist0pheLes]

It is not always that way. After xd drop if the stock is good it will rise and then your side income is really extra but for some stock the wait can be very long I do agree. The SGX REIT stocks I hold is at least 10 years and those dividends I collected after deduct my average price based on currently traded price are really side income.

it is always that way, unless the market is irreparably broken.
u have $50 in your book, u take it out and distribute away, your book value drops by $50, and it will be reflected in a $50 drop in ur stock capitalisation (and hence the stock price). this will always be true as long as $1 in ur left hand is worth $1 in your right hand.

and yes, the price of a good dividend paying stock will rise over time, but it could be worth more if it didn't pay out the dividend.

 

[sohguanh]

and yes, the price of a good dividend paying stock will rise over time, but it could be worth more if it didn't pay out the dividend.

The wait can be long so I prefer to get dividends while waiting. I am ok getting lesser. But you seem to be the other camp gunning for maximum capital gain not wrong either just enjoy your wait lor.

 

[Mephist0pheLes]

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.

 

[Mephist0pheLes]

The wait can be long so I prefer to get dividends while waiting. I am ok getting lesser. But you seem to be the other camp gunning for maximum capital gain not wrong either just enjoy your wait lor.

not maximum capital gain, but total gain. i dont care if the gain comes from dividend or capital appreciation. if a dividend paying company has good total gain, sure go for it. i jus dont buy the strategy of narrowing our investment choice set to dividend paying stocks only. and i think it is wrong to base our investment decision on whether a stock pays dividend or not. and my reasons are in post 13.

 

[sohguanh]

not maximum capital gain, but total gain. i dont care if the gain comes from dividend or capital appreciation. if a dividend paying company has good total gain, sure go for it. i jus dont buy the strategy of narrowing our investment choice set to dividend paying stocks only. and my reasons are in post 13.

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.

 

[Mephist0pheLes]

there are good and bad strategies. a strategy that is rooted in fallacy is definitely not a good one in my view.

 

[zeroX26]

What's a good capital to start with reits? 50K?

50k max 5 reits.

 

[loveboon]

50k max 5 reits.

What are the 5 reits you’d recommend?

 

[loveboon]

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.

there are good and bad strategies. a strategy that is rooted in fallacy is definitely not a good one in my view.

 

[beta93]

What are the good way to start you dividend portfolio? Do you buy foreign stocks for dividend? What books do you recommend?

No such thing as dividend investor, only value investor really ,main stream media like to hype up these terms and make a big hoo ha