QUOTE(dreamer101 @ Apr 29 2007, 09:06 PM)
Hi,
It is NOT as simple as I post. You need to check one more thing too. Is the earning equal or greater than RM0.60 per share?? I did not look. I bought the share at RM6.60 with assumption of RM0.40 dividend per year.
So, the dividend has to be financed from earning.
Do not just look at dividend yield. You have to check whether the earning is sufficient to pay the dividend consistently or this is one time special dividend.
The last announcement that I heard is PBBank earning increased at 24% from last year. I do not know what is the actual earning figure.
So,
1) Check dividend yield
2) Check if dividend is paid from earning aka earning >= dividend
3) Check if the company has been consistently paying and increase dividend for many years.
Dreamer
P.S.: IMHO. there is only less than 5 counters worth investing in KLSE. I only know and invest in one. My definition of investing is something that you can buy and go to sleep for 5 years. And, you will be fine.
Thanks, dreamer for your explanation on how to determine a worthy price to buy and how to define a good share to buy...
I like your definition of investing...something that you can buy and go to sleep for 5 year!!! I know this is the correct way to invest, but it really need discipline... Keep away from all the speculation...
So, according to your calculation, if the company earning is more than the dividend, and the dividend yield is as what we expect, we can buy the share...The net assets of company is not really important, is it?
Cherroy, thanks for your reply. How we can actually know the quality of loan of a particular bank? Interest rate or what?