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 Invest in dividend stocks, dividend don lie

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TSlowyeap
post Jan 5 2017, 09:24 PM, updated 7y ago

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Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys rclxms.gif
T231H
post Jan 5 2017, 09:41 PM

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QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys  rclxms.gif
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rclxms.gif wow...just after more than 1 year of investing experience,...wanted to get 6% average per annually.... rclxms.gif
then you are definitely much better than most of the fund managers of unit trust funds....
thumbsup.gif


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TSlowyeap
post Jan 5 2017, 09:42 PM

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magnum, maybank, and most reit pay dividend above 6%
T231H
post Jan 5 2017, 09:53 PM

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QUOTE(lowyeap @ Jan 5 2017, 09:42 PM)
magnum, maybank, and most reit pay dividend above 6%
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thumbup.gif wow... you are thumbsup.gif
doh.gif hmm.gif wondering why did the funds with all their analysts and experts performed cannot meet that par annually...?

1tanmee
post Jan 5 2017, 10:26 PM

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But when the companies give dividends, the share price shall be revised downwards to reflect the changes. That, and dividends payout is not a given, so companies may decide to give, and what amount. And past records would not determine future payouts.
but true oso, pick the stocks carefully and sure can get nice dividends.
Showtime747
post Jan 5 2017, 11:59 PM

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QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys  rclxms.gif
*
It is a matter of choice, or your investment philosophy. Or chinese called it 眼光. Also depends on your goal (short/long term, aggressive/retirement)

No right or wrong whether you eye for growth stock or income stock.

To me, if a person is not good at analysing (both fundamental or technical) then better stick to blue chips which pay decent dividends.

As long as you are happy, then stick to what you do best


Showtime747
post Jan 6 2017, 12:06 AM

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QUOTE(T231H @ Jan 5 2017, 09:53 PM)
thumbup.gif wow... you are  thumbsup.gif
doh.gif  hmm.gif  wondering why did the funds with all their analysts and experts performed cannot meet that par annually...?
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Got good and bad mah. Same as you buy own stock....


wengherng
post Jan 9 2017, 01:00 AM

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QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys  rclxms.gif
*
That really depends on what is your investment strategy, your risk appetite and your investment horizon, among other things.
Value investing is fundamentally different from trading, so the switch can be psychologically difficult for many people.
You have to really be committed to investing for the long term (think more than 5 years; in fact 10 years is the norm; and Warren Buffet himself has stated that his favourite holding period for a stock is forever).
Which also means disassociating yourself from all the short term negative news and possible volatility, and basically close your eyes and ears, to the point where you can forget about the stock for several years and it wouldn't bother you.
As you said yourself, dividend stocks are generally stable companies which have less capital appreciation (though actually stable dividend stocks are not necessarily blue chips) so they tend to be very boring stocks, which may not suit everyone's taste.
Personally, I avoid all companies which are highly linked to Malaysian politics, and all commodities, and most technology companies.
But that's just me, a novice. sweat.gif
ILoveLalat.net
post Jan 9 2017, 10:26 AM

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QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys  rclxms.gif
*
In order for you to enjoy that 6%, the stocks that you have invested must maintain the same give or take price from the beginning of the year. Let's say if company EFG's give out 12% worth of dividend, but the stock lags behind 9.5%, your take home gain is only 2.5%.

Dividends are worth more of the value if you are in for the long haul, especially if you were to compound it by re-investing your dividends into buying additional stocks of the same company. Usually companies with stable dividend returns are REITs, but banking stocks and to some extend, plantation companies are stable. Now you have just look on the good of the greener grass but it does not mean one is immune totally to the fluctuation of stock prices. That needs to be kept in mind.

Hope this helps!
max_cavalera
post Jan 9 2017, 10:33 AM

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QUOTE(T231H @ Jan 5 2017, 10:53 PM)
thumbup.gif wow... you are  :thumbsup:
doh.gif  hmm.gif  wondering why did the funds with all their analysts and experts performed cannot meet that par annually...?
*
Managing a big pile of money is not as easy managing a small pool of money where u go in and out of any stock without ruffling the waters....

There is no choic for institutional investors other than trading and investing long term rather than intra day or few day/weeks of holding
TSlowyeap
post Jun 24 2017, 02:05 PM

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QUOTE(wengherng @ Jan 9 2017, 01:00 AM)
That really depends on what is your investment strategy, your risk appetite and your investment horizon, among other things.
Value investing is fundamentally different from trading, so the switch can be psychologically difficult for many people.
You have to really be committed to investing for the long term (think more than 5 years; in fact 10 years is the norm; and Warren Buffet himself has stated that his favourite holding period for a stock is forever).
Which also means disassociating yourself from all the short term negative news and possible volatility, and basically close your eyes and ears, to the point where you can forget about the stock for several years and it wouldn't bother you.
As you said yourself, dividend stocks are generally stable companies which have less capital appreciation (though actually stable dividend stocks are not necessarily blue chips) so they tend to be very boring stocks, which may not suit everyone's taste.
Personally, I avoid all companies which are highly linked to Malaysian politics, and all commodities, and most technology companies.
But that's just me, a novice.  sweat.gif
*
Thanks for all the replies, especially wengherng. Ever since the, i have been continue to invest, with both income investing and value investing strategies. Income investing is bored but it is definitely viable. I allocated most of my money for dividend stocks. While i also invest in potential smaller companies and it pay off so far. My return on investment is currently at 18%, 20% inclusive of dividends received. Now, Im thinking to register for a share margin financing of a RM50k with Maybank as standby tool to grab any future opportunities. I know it's double edges. So, I set a principle that I only invest in those financial sounds company, such as high cash, profitable for years and so on. What's u all opinions?

wengherng
post Jun 24 2017, 04:13 PM

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QUOTE(lowyeap @ Jun 24 2017, 02:05 PM)
Thanks for all the replies, especially wengherng. Ever since the, i have been continue to invest, with both income investing and value investing strategies. Income investing is bored but it is definitely viable. I allocated most of my money for dividend stocks. While i also invest in potential smaller companies and it pay off so far. My return on investment is currently at 18%, 20% inclusive of dividends received. Now, Im thinking to register for a share margin financing of a RM50k with Maybank as standby tool to grab any future opportunities. I know it's double edges. So, I set a principle that I only invest in those financial sounds company, such as high cash, profitable for years and so on. What's u all opinions?
*
18% is a very respectable number, keep it up!
But personally, I'd keep away from margin financing, no matter how lucrative the investment might be.
Even financially sound companies can go bust anytime, and even if they don't, there are bound to be sudden spikes and dips along the way, especially looking at the global financial situation right now, I do not think Malaysia is in a particularly strong position.
Never ever ever invest using money that is not yours.

TSlowyeap
post Jun 24 2017, 04:49 PM

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QUOTE(wengherng @ Jun 24 2017, 04:13 PM)
18% is a very respectable number, keep it up!
But personally, I'd keep away from margin financing, no matter how lucrative the investment might be.
Even financially sound companies can go bust anytime, and even if they don't, there are bound to be sudden spikes and dips along the way, especially looking at the global financial situation right now, I do not think Malaysia is in a particularly strong position.
Never ever ever invest using money that is not yours.
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Yeah, just a plain thought. The fallback of it is great, if anything goes south, can set me back for few years.
Nikmon
post Jun 25 2017, 09:17 PM

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There are company dividend yield stand at 7% -10%, even loan money to pay dividend, super good retun.

This post has been edited by Nikmon: Jun 25 2017, 09:17 PM
evangelion
post Jul 6 2017, 09:50 AM

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QUOTE(T231H @ Jan 5 2017, 09:41 PM)
rclxms.gif wow...just after more than 1 year of investing experience,...wanted to get 6% average per annually.... rclxms.gif
then you are definitely much better than most of the fund managers of unit trust funds....
:thumbsup:
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Bro, link to this website.
Thanks, appreciated
cherroy
post Jul 6 2017, 09:57 AM

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QUOTE(lowyeap @ Jan 5 2017, 09:24 PM)
Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys  rclxms.gif
*
This is not necessary true,

PBB is a blue chip dividend stock, and its long term capital appreciation outperforms a lot of stocks out there.

T231H
post Jul 7 2017, 11:41 AM

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QUOTE(evangelion @ Jul 6 2017, 09:50 AM)
Bro, link to this website.
Thanks, appreciated
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Simply make your selections and they will generate a customized table for you.
https://www.fundsupermart.com.my/main/fundi...fundSelect.svdo


dreamxite
post Jul 8 2017, 08:00 AM

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Ultimately, you have to decide your own investment strategy. But from my point of view, since you just graduated, meaning you still have 30-40 years in front of you before you retire, focusing too much on dividend might not be the right thing for you. I say 'might' because I have no idea what's your personal situation.

However, if you plan is to maximize future wealth, focusing too much on dividend can do more harm than good to your long term return. Since your focus is to generate a long term CAGR, focus on return on capital and the quality of the business. ROC is the ultimate long term key driver that decides your long term return not dividend. Dividend is just a byproduct of a management decision.

Not to mention, yes dividend is great, but you have to take into account that those dividend that you receive needs to be invested back into the market, so you have to think about reinvestment opportunity - is there always another good opportunity waiting for you? You have to think about time, how much time you have to spend researching to find the right opportunity, and lastly, the probability of making mistakes because of decision fatigue. These are all opportunity cost.
Smurfs
post Jul 8 2017, 09:58 AM

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Dividend dont lie, but it may declined
netmask8
post Jul 8 2017, 11:05 PM

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Why Bursa? Buy and Sell, ratio 1 : 1

Invest in companies in SG, HK or NYSE / Nasdaq..
Gain / Loss X currency exchange rates too. Fast up / down..
Dividend also X currency exchange rates too.

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