...capital growth? cos earnings grow, P/E will follow suit...?

only by calculating you will get enlightenment..

I also dunno what u want me to calculate

You put RM 10000 in both company A and B and collect dividend.. then 10 years later sell off both shares.

Which one will give you a higher TOTAL earnings?

We ignore interest rate from dividend received for now.

Ooh

Assuming constant P/E

The company with growth will give u capital growth lor

Ya ya ya... give the numbers lah..

or not you cannot see how much.

I'm not THAT free now

and I'm using wide screen monitor now...aunty duduk sebelah complain aku nanti

Anyway I give you answer.

Company A
Invest 10,000 shares @ RM 1 = RM 10,000
10 years of dividend received = RM 10,000
Shares sold @ RM 1 @ PE 10x = RM 10,000
Total received = RM 20,000

Total Earnings = RM 20,000 - RM 10,000 = RM 10,000

CAGR 7.81%, Not too bad eh?

Company B
Invest 10,000 shares @ RM 1 = RM 10,000
10 years of dividend received = RM 4,781
Shares sold @ RM 2.35 @ PE 10x = RM 23,500
Total received = RM 28,281

Total Earnings = RM 28,281 - RM 10,000 = RM 18,281

CAGR 10.96% ...

So.. is buying on yield better or buying on growth better?

See what i mean?

This post has been edited by gark: Apr 23 2014, 03:13 PM

Lots of stocks on redddd

Objection!

Your calculation ignores the fact that u COULD reinvest dividends

You calculate reinvest and see how?

Company A on linear earnings...

Company B on exponential earnings...

exponential > linear..

This post has been edited by gark: Apr 23 2014, 03:22 PM

That is for TOTAL RETURN

But if I invest to get a stream of (growing) passive income...I think divvy is superior

unless u trade in and out to realise the capital gains

Come support YTL...

what is the difference between total return and piece by piece return?

Earnings is all about total cash received in hand...

Still dont want to see the big picture eh?

This post has been edited by gark: Apr 23 2014, 04:00 PM

If u buy and hold...divvy is still superior lor for generating passive income (read - COLD HARD CASH).

If u don't sell, capital gains are just paper gains that u can't use to buy beers and condoms

This post has been edited by Pink Spider: Apr 23 2014, 04:01 PM

I support you via WB...

Hahaha... sell the stock ... not cold hard cash ah? then what?...

Ok want to talk divvy....

what if hold 20 years, company B dividend yield on cost is now how much? Still beats Company A..... hands down.

However you want to manipulate, the answer is out there...

growth > divvy..

This post has been edited by gark: Apr 23 2014, 04:04 PM

No, no... that is YTLP...

I play with mother...

Ok ok ok, I raise my white underwear on flag pole

Sounds so...wrong