Question regarding dividend stock

[DeElement]

Hi all ,

Sorry I have question that I wanna clear up. And before everything , I have to declare that I am a noob in this field , I mean I read up on articles and all the guides and post regarding dividend stock in here and some other places but not enough to clear up the air. With that said , here we go:

What are the key things that you guys consider before deeming the stock ok-to-buy?

Where do you guys look up for all this information? I mean there are software for forex , so I'm thinking all this information can be found on poems?

How complex is it to actually go through the process and buy the stock?

On average , how much is it per lot?

Is it or is it not a good idea to buy multiple lot on the same stock?

Please bear in mine that I'm looking at dividend , a passive income , not the "THROW HOUSE THROW CAR THROW CPF HOOT AND PO HENG SUAY AH!" kind.

Thx bros in advance for the help!

 

[lcornwisky]

Hi all ,

Sorry I have question that I wanna clear up. And before everything , I have to declare that I am a noob in this field , I mean I read up on articles and all the guides and post regarding dividend stock in here and some other places but not enough to clear up the air. With that said , here we go:

What are the key things that you guys consider before deeming the stock ok-to-buy?

Where do you guys look up for all this information? I mean there are software for forex , so I'm thinking all this information can be found on poems?

How complex is it to actually go through the process and buy the stock?

On average , how much is it per lot?

Is it or is it not a good idea to buy multiple lot on the same stock?

Please bear in mine that I'm looking at dividend , a passive income , not the "THROW HOUSE THROW CAR THROW CPF HOOT AND PO HENG SUAY AH!" kind.

Thx bros in advance for the help!

earnings report...in the us market that is

for singapore its prone to manipulation due to low volume

 

[lcornwisky]

suggest to use an overseas broker

IG|CFD Trading, Forex Trading

they have a singapore office

 

[Sinkie]

suggest to use an overseas broker

IG|CFD Trading, Forex Trading

they have a singapore office

a newbie can fulfil unlisted sip requirement to open cfd? then cfd is using leverage also, maybe dividend he received just enough to pay for his interest even though he has enough money..

for newbie or small timer, go for scb better..

 

[wahkao3]

suggest to use an overseas broker

IG|CFD Trading, Forex Trading

they have a singapore office

dont use CFDDDDD!!

 

[marandaz]

Dividend?

Business Model, Current & Historic distribution, Net Profit & Free Cash Flow.

More or less those metrics. Varies person to person.

 

[DeElement]

Thx guys for the input! much appreciated! but ! as i've mentioned previously , i'm a newbie , so , simple english please? =/

 

[bhalimking]

Hi Deelement

If you want to invest in dividend investing strategy, I suggest you read up first on understanding the basic relationship between Pnl, Balance Sheet and Cash Flow Statement. It is easy to see which companies give out high dividend yield, but to go deeper and find out whether the payout is sustainable is another thing.

Reits is well known to pay high dividend yield due to their payout requirement but again know what is underlying behind these high dividend yield.

There are no shortcuts to investing so I think it's better that you read up a few more at least understanding the concept behind the financial statement.

Hi all ,

Sorry I have question that I wanna clear up. And before everything , I have to declare that I am a noob in this field , I mean I read up on articles and all the guides and post regarding dividend stock in here and some other places but not enough to clear up the air. With that said , here we go:

What are the key things that you guys consider before deeming the stock ok-to-buy?

Where do you guys look up for all this information? I mean there are software for forex , so I'm thinking all this information can be found on poems?

How complex is it to actually go through the process and buy the stock?

On average , how much is it per lot?

Is it or is it not a good idea to buy multiple lot on the same stock?

Please bear in mine that I'm looking at dividend , a passive income , not the "THROW HOUSE THROW CAR THROW CPF HOOT AND PO HENG SUAY AH!" kind.

Thx bros in advance for the help!

 

[wahkao3]

H
Please bear in mine that I'm looking at dividend , a passive income , not the "THROW HOUSE THROW CAR THROW CPF HOOT AND PO HENG SUAY AH!" kind.

my advise is DONT BE HARD UP OVER DIVIDEND!

Here is my article pls read:
===========================================
When invest in stock market, why are people so hard up over dividends?

That day I discussion stock market with friend, they say they look at dividends first. No dividend no talk. even my finance trained friend also say he look at dividend first. I hear him say this buei ta han dunno what he thinking.

I was thinking, dividends dont matter. The idea of receiving dividends every year sounds nice, but if you think carefully, its just left pocket right pocket. When you receive dividends, the share price will drop together with the dividend.

In fact, having no dividend is better because you are in control of when you receive your dividend.

Shouldnt other valuation ratios be more important?

So really, why are people so hard up over dividends when they invest?


no offense to dividend warrior, just trying to have healthy debate so everyone become wiser. I know dividend warrior subscribe to the idea of dividend + growth. I dont agree with dividend, but I agree with growth.

-----------------------------------
the returns you get when choosing high dividend stocks vs low dividend stocks. there is NOTABLE NO DIFFERENCE!

-------------------------
Sing Inv SING INVESTMENTS & FINANCE LTD

Look at this company
Do rights issue. Then after that do dividend issue.
How dumb is that? Give you a Drumstruck , then take away the whole chicken

This type of company must avoid because they are doing stupid things

--------------------------

High Dividend stocks - Good or bad? Buy liao can huat big big?

I see buying dividend stock seems to be very in. Buy liao every year company give you money. Shiok shiok.

Is it really good or bad? Dividend give you liao the price will automatically devalue. End up also back to square one mah? Left pocket right pocket.

Why is it when come to investing, people think of dividend as 1 of the top priority? Is it the right way of investing?

Preferably Please dont say something generic like "depend on strategy". Break it down into its nuts and bolts in terms of risk reward liquidity returns etc

 

[bhalimking]

Hi Wah Kao

Indeed, you are right in saying that growth and dividend strategy is highly contestable and in terms of returns one will win over the other.

However, to the new investor who had just begin investing, dividend strategy allows he or she to receive back some income regularly in the form of dividends. It allows the investor to learn and be more confident towards investing in general. Of course, a dividend strategy is not flawless. Capital loss could be realized if the market takes a poor turn that might be more than the dividends received.

 

[Paul Lee]

my advise is DONT BE HARD UP OVER DIVIDEND!

Is it really good or bad? Dividend give you liao the price will automatically devalue. End up also back to square one mah? Left pocket right pocket.

Why is it when come to investing, people think of dividend as 1 of the top priority? Is it the right way of investing?

I agree that one should not be too overly focused on dividends but saying that giving dividends is back to square one and left pocket and right pocket is over-generalising quite a bit.

I dun classify REITs as dividends stocks because they are not. REITs are governed by a different set of regulations and should not be regarded as dividends stocks. As with other stocks there are good REITs and bad REITs so one still have to do your homework.

Is investing in dividend stocks bad? Of cos not; because at the fundamental level, what usually is a good dividend stock also tend to be fundamentally sound with a sustainable and stable business in the first place.

Just a simple example, anyone who has invested in M1 since IPO (like me) and not cashed out would have got back in dividends and capital returns over the years that is more than his initial investment. So my M1 shares in my portfolio are now essentially 'free'.

Investing in so-called growth stock is fine. But the simple fact is that unless its a blue chip companies, such 'growth stock' can languish in the wilderness for years before its values is fully realised by Mr. Market. Sometimes that may never happen too.

Tan Cheong is a clear example. It has what is widely considered to be a valuable land bank and it has a stable business in car dealership that is generally profitable. Popular is another one. It has a visible and profitable chains of bookstores. So why has they not really 'grown' to its full value? Who knows? Mr. Market works in mysterious ways.

So that is why investing is both a science and an art. Sometimes you can get the science right and still not profit. Other times you can screw up the science and still profit.

The primary reason why DW had done well with his stock pick is that his timing was impeccable and most of his position that he entered were winners; but that is equally applicable to anyone who entered the market at the time he did and still hold on. In recent months, none of his stock picks had been as spectacular for the simple reason that valuation for most stocks has generally risen. So anyone who tried to duplicate what he did now would probably not be as profitable. Of cos DW also done his homework before investing and there are reasons why his picks are winners to begin with; because most of them are fundamentally sound companies.

So is dividend stock investing the right way to invest? Ultimately there is no 'right' way to invest. What works for DW and me may not work for others. What works for you may not work for me.

At the end of the day, the 'right' way to invest is to pick the correct stock, entered at the correct time, exit at the correct time and hope you make a decent returns on your capital. And if you can do it without investing in so-called dividend stock, then all's well and good.

 

[Sinkie]

I agree that one should not be too overly focused on dividends but saying that giving dividends is back to square one and left pocket and right pocket is over-generalising quite a bit.

I dun classify REITs as dividends stocks because they are not. REITs are governed by a different set of regulations and should not be regarded as dividends stocks. As with other stocks there are good REITs and bad REITs so one still have to do your homework.

Is investing in dividend stocks bad? Of cos not; because at the fundamental level, what usually is a good dividend stock also tend to be fundamentally sound with a sustainable and stable business in the first place.

Just a simple example, anyone who has invested in M1 since IPO (like me) and not cashed out would have got back in dividends and capital returns over the years that is more than his initial investment. So my M1 shares in my portfolio are now essentially 'free'.

Investing in so-called growth stock is fine. But the simple fact is that unless its a blue chip companies, such 'growth stock' can languish in the wilderness for years before its values is fully realised by Mr. Market. Sometimes that may never happen too.

Tan Cheong is a clear example. It has what is widely considered to be a valuable land bank and it has a stable business in car dealership that is generally profitable. Popular is another one. It has a visible and profitable chains of bookstores. So why has they not really 'grown' to its full value? Who knows? Mr. Market works in mysterious ways.

So that is why investing is both a science and an art. Sometimes you can get the science right and still not profit. Other times you can screw up the science and still profit.

The primary reason why DW had done well with his stock pick is that his timing was impeccable and most of his position that he entered were winners; but that is equally applicable to anyone who entered the market at the time he did and still hold on. In recent months, none of his stock picks had been as spectacular for the simple reason that valuation for most stocks has generally risen. So anyone who tried to duplicate what he did now would probably not be as profitable. Of cos DW also done his homework before investing and there are reasons why his picks are winners to begin with; because most of them are fundamentally sound companies.

So is dividend stock investing the right way to invest? Ultimately there is no 'right' way to invest. What works for DW and me may not work for others. What works for you may not work for me.

At the end of the day, the 'right' way to invest is to pick the correct stock, entered at the correct time, exit at the correct time and hope you make a decent returns on your capital. And if you can do it without investing in so-called dividend stock, then all's well and good.

This post deserves to be sticky !! Clear and concise explaination !

 

[wahkao3]

Hi Wah Kao

Indeed, you are right in saying that growth and dividend strategy is highly contestable and in terms of returns one will win over the other.

However, to the new investor who had just begin investing, dividend strategy allows he or she to receive back some income regularly in the form of dividends. It allows the investor to learn and be more confident towards investing in general. Of course, a dividend strategy is not flawless. Capital loss could be realized if the market takes a poor turn that might be more than the dividends received.

I think newbie investors should take on low risk investments like bonds or post crash bluechips

 

[djchris]

I wonder why some people just think that when company distribute dividend. If a company is fundamentally sound, distributing dividend is just rewarding shareholders for their support and trust. Share price won't take a hit after CD.

 

[wahkao3]

I dun classify REITs as dividends stocks because they are not. REITs are governed by a different set of regulations and should not be regarded as dividends stocks. As with other stocks there are good REITs and bad REITs so one still have to do your homework.

i will classify reits as dividend stocks due to their stable cashflow from business

Is investing in dividend stocks bad? Of cos not; because at the fundamental level, what usually is a good dividend stock also tend to be fundamentally sound with a sustainable and stable business in the first place.

yes true

Just a simple example, anyone who has invested in M1 since IPO (like me) and not cashed out would have got back in dividends and capital returns over the years that is more than his initial investment. So my M1 shares in my portfolio are now essentially 'free'.

good example.
its easy to find many examples on hindsight.

Investing in so-called growth stock is fine. But the simple fact is that unless its a blue chip companies, such 'growth stock' can languish in the wilderness for years before its values is fully realised by Mr. Market. Sometimes that may never happen too.

usually growth stocks dont have such problem. they usually chiong like no tomorrow. its usually value stocks which suffer from value trap
dividend stocks also have similar problems. you might think "at least I got dividends while I wait". But remember, prices adjust for dividends, left pocket right pocket style. There is no free lunch.

all of us would like to ride on the price appreciation of growth stocks. they are usually the riskiest and the most rewarding. if you can find a growth stock where known growth has not been priced in, its a good stock to pick up. These are low risk, high return.

Tan Cheong is a clear example. It has what is widely considered to be a valuable land bank and it has a stable business in car dealership that is generally profitable. Popular is another one. It has a visible and profitable chains of bookstores. So why has they not really 'grown' to its full value? Who knows? Mr. Market works in mysterious ways.

these stocks good or not? now can buy?
I think popular can buy and camp your money there.Tan Cheong i dunno yet.

So that is why investing is both a science and an art. Sometimes you can get the science right and still not profit. Other times you can screw up the science and still profit.

yep. science and art.
I prefer science where things can be qualified like statistics.

The primary reason why DW had done well with his stock pick is that his timing was impeccable and most of his position that he entered were winners; but that is equally applicable to anyone who entered the market at the time he did and still hold on. In recent months, none of his stock picks had been as spectacular for the simple reason that valuation for most stocks has generally risen. So anyone who tried to duplicate what he did now would probably not be as profitable. Of cos DW also done his homework before investing and there are reasons why his picks are winners to begin with; because most of them are fundamentally sound companies.

yes timing is important. So the next question is: How do you time the market? how to do homework? How to find fundamemtally sound companies. lets discuss that

So is dividend stock investing the right way to invest? Ultimately there is no 'right' way to invest. What works for DW and me may not work for others. What works for you may not work for me.

At the end of the day, the 'right' way to invest is to pick the correct stock, entered at the correct time, exit at the correct time and hope you make a decent returns on your capital. And if you can do it without investing in so-called dividend stock, then all's well and good.

yep. doesnt matter black card or white cat. as long as the cat can catch mouse, its a good cat

 

[wahkao3]

I wonder why some people just think that when company distribute dividend. If a company is fundamentally sound, distributing dividend is just rewarding shareholders for their support and trust. Share price won't take a hit after CD.

by arbitrage, share price will always take a hit equivalent to the dividend given to share holders after XD
no way to escape.

 

[Paul Lee]

by arbitrage, share price will always take a hit equivalent to the dividend given to share holders after XD
no way to escape.

I disagree. And I have given one examples and I can give many more but I will just give 2 - Singpost and Starhub.

Singpost has been consistently giving at least 6.25c every yr since its IPO in 2003 at 60c. So if your argument is correct, the share price should effectively be near to zero now.

Starhub has been giving a steady 20c dividend since at least 2009. Again if what you say is true, you would see a steady downward stock price in Starhub to account for the 'arbitrage' that you say there's 'no way to escape'. But a quick look at the chart will reveal that this is not true.

I can made the same argument for all the blue chip companies that gives regular dividends.

Sure if you are talking about the very short term after XD, then yes, there may be price adjustment to account for the dividend declared. But ultimately the fundamentals of the companies would determine the stock value. And as long as the companies has a sustainable positive free cash flow and a sensible dividend policy, there's no reason why the company should continue on its downward price spiral just because it regularly gave out dividends.

 

[Bedokian]

A good recent case in October - FCOT, even though during XD it went down, but after a few days it rose higher than its CD period. Usually for REITs, the price would go back to pre-CD levels during XD.

 

[sandwicher]

I disagree. And I have given one examples and I can give many more but I will just give 2 - Singpost and Starhub.

Singpost has been consistently giving at least 6.25c every yr since its IPO in 2003 at 60c. So if your argument is correct, the share price should effectively be near to zero now.

Starhub has been giving a steady 20c dividend since at least 2009. Again if what you say is true, you would see a steady downward stock price in Starhub to account for the 'arbitrage' that you say there's 'no way to escape'. But a quick look at the chart will reveal that this is not true.

I can made the same argument for all the blue chip companies that gives regular dividends.

Sure if you are talking about the very short term after XD, then yes, there may be price adjustment to account for the dividend declared. But ultimately the fundamentals of the companies would determine the stock value. And as long as the companies has a sustainable positive free cash flow and a sensible dividend policy, there's no reason why the company should continue on its downward price spiral just because it regularly gave out dividends.

Wah kao just got schooled! It's not 'left pocket to right pocket', this isn't a repayment of your principal sum. Is this the distribution of its earnings. A dividend stock doesn't really behave like a bond.

 

[wahkao3]

eh, the chart u looking at, is it dividend adjusted?
if its dividend adjusted u wont see the XD gap down