For dividend investing, what is the minimum number of counters one should have in the basket? Of course I know there's no hard and fast standard, just wanna hear some ideas

Hi pink spider,


I share mine, i have 5 counter at KLSE. Now looking SG dividend counter. Happy Investing.

hi DW, any read ups or article that you have on how to invest Sg stocks? do i need a bank account or CDS account in SG or can i just use my Maybank CDS?

hi pisces88;

You call your remiser to buy SG stock for Direct CDS acc for maybank.
To trade online your broker will deactive otc.maybank2u. online to powerbroking2u.com.

While Maybank nominee acc link to maybank2u will hv to wait, soon can trade SGX counter, this what i heard from maybank investment jalan ampang.

thanks let me ask my remiser.

any good recommendations on SG reits?

i rely
http://reitdata.com/

and

http://dividendsrichwarrior.blogspot.com/


Havent buy any yet, becoz waiting my $$$$$ . Dont want to put all my egg in MYR equities.

This post has been edited by felixmask: Jan 20 2013, 10:50 PM

This is a frequently ask question that has been discussed massively and always come back one way or another. Looks like it's always frustrating.

Everyone has their own "theory" or opinion. For me today, I just think this.
It depends on:
1. How big is the investment. The bigger the money, the bigger the range of possible number of stocks to hold.
2. How many stocks that you can find are hard to resist and so damn want to buy and keep. If there is very few, then no point to "simply" buy many.

My take on Bursa, I think I can find 20 or so that I may wish to buy and hold. But I will try to keep the max at 25 so that it won't be too tired to keep track on so many companies businesses. However, look for a few companies with similar business model and condition may make the task a little easier.

So now gets down to how much the capital is.
Below $3000, I'd suggest don't buy any stock yet. Save until $3000 only start to invest on the very first stock.
From there on, every 5000 increment may invest on one new stock (if there is any attractive stock you found) but keep it slow.
And this is also because I recommend the best way is to buy in few batches (I like it 3 to 5 batches) simply because we never know when is the best price to buy/sell.

Just sharing some thoughts.

Because of transaction costs too, right?

Thanks

i am also curious.... how much do i need to invest and hold just to collect 6% dividend a year...... and most of the shares i got doesnt even paid me dividend.....

According to French-Fama study (who won the nobel prize for economics) the number of stocks to substantially lower the portfolio risk is a minimum of 10 diversified stocks, and after 30 stocks there is no more increase risk reduction and the portfolio will tend to perform similar to index.

Diversified stocks means stocks diversified across industry with different beta to each other. 10 plantation stocks is NOT diversification.



This post has been edited by gark: Jan 21 2013, 10:52 AM

Ok thanks

Megasale starting today until GE.. I am in hunting mode for dividend stocks also...

This post has been edited by gark: Jan 21 2013, 11:04 AM

Hi gark,
can share your hunting listing?

Still look look see see, a lot of stocks is still overvalue... wait for more discount first.

Gark~ how to determine whether stock is overvalue?? mind explain?? thx..

Yes, need further drop. Most if not all dividend stocks are too pricey now (in DY %) terms

The simplest way is to look generally at PE, DY and PBV values. Also look at future growth, higher growth warrants higher PE.

My own ultra-simple layman formula for reasonable PE = (Future growth% + DY%)

For dividend stocks you need to see DY%, Payout ratio & dividend growth%. Generally DY>5% (~2x FD) with payout ratio of <50% (sustainable) and dividend growth >5% (chase inflation) is a good bet.

However that's my layman 555 formula, other investors might have different ideas...

This post has been edited by gark: Jan 21 2013, 12:13 PM

My criteria are very similar

Somebody says that for growth stocks, we look at their EPS; for mature stocks, we look at their cash flow...

Basically Free cash flow must > Dividend... otherwise the cash not enough to pay dividend.

FCF = Operational cash flow - capex

For growth look for EPS (capital gain), dividend stock look for FCF (dividend gain).

This post has been edited by gark: Jan 21 2013, 12:32 PM

After looking into all these. How do u compare with the current stock price to determine what price are to be consider undervalue over the current price? To see whether the stock is discounted or not. How?