dividend trap

[Some-one]

its probably an error..........

like how can a $1 stock pay $10 dividends?

unless it was a $11 stock
paid $10
and became $1

LOL

There are stocks who do so but it is not a consistent one. They are probably paid out of a one off event such as after selling a certain subsidiary. CSE global is one example. They sell off one of their subsidiaries to their US partner and paid a one off dividend.

However for such case, you need to remove the special dividend to calculate the dividend yield and unfortunately, the screener won't say so. They just use the one off dividend to calculate for the last financial year. Users have to be careful and not take it as the real dividend yield.

 

[MikeL09]

1000%? Might be confused with capital reduction. Stock price will come down by equivalent amt post exercise.
Otherwise, it is devilsend, not godsend stock.LOL.

 

[wahkao3]

this thread precisely shows you not to be hard up over dividend!

 

[Shion]

this thread precisely shows you not to be hard up over dividend!

And there is no need to repeat this

 

[felixleong]

This message is hidden because wahkao3 is on your ignore list.

 

[wahkao3]

And there is no need to repeat this

its my trademark

 

[Shion]

its my trademark

We all know it already.

 

[Milo-Dino]

Are you sure you are reading your source correctly? UG Healthcare was only listed in Dec 2014 and has not even paid a dividend yet. Jaya Holdings recently did a capital reduction.

Goes to show that you can't depend on a screener especially for things like dividend yields - always double check with SGX's Corporate Actions to see how much was actually paid out and whether they are dividends.

UG's statistics were probably from the dividends paid before it listed...

ie. the owners distributed the cash amongst themselves at the lower float, before they IPO , listed and expend the float

 

[bigpelican]

Oh and one.more question after xd the stock will definitely drop by the amount.of dividend given out so isn't it the best time to short the stock?

when you short, you earn the capital profit after price drop, but you need to pay the dividend back to the person who lends the dividend stock to you, so it ends up the same.

 

[felixleong]

This message is hidden because wahkao3 is on your ignore list.

 

[wahkao3]

dont be hard up over dividends~!!!!

 

[Shion]

dont be hard up over dividends~!!!!

You dig out this thread just to post this ?

 

[Milo-Dino]

dont be hard up over dividends~!!!!

Wahkaoooooooooo

Thread digger

Sent from Xiaomi MI 4I using GAGT

 

[knightdreamer]

dont be hard up over dividends~!!!!

wahkao, you want to increase your post count huh