Quick money mah...

probably he is paid for the advertisement as well

etoro provides high commision for referral. I found the platform not so stable. Long term wont go there.

Please read how dividends work.

A dividend is not free money. The money has to come from somewhere. If dividend works the way you thought it did, everyone can become super rich by borrowing RM1 million to buy all the shares they can right before ex-date, then pocket the free dividend money, sell back all the stocks to return the money borrowed.

Also I would not recommend people to treat dividend magic like gospel. Understand that it really matters when you buy into a stock and don't just blindly follow the guy's portfolio. It's definitely not worth buying some of the stocks he's holding anymore, the ship has sailed a long time ago. Like Nestle. The guy bought Nestle stocks when it was at RM66.88.

Rule #1 - Do NOT buy a stock just for its dividends, unless the stock has proven track record of its management abilities and a track record of maintaining a sustainable growth in profit. Buying stocks just before ex-date is beyond stupid like you said. Dividend Magic also does not condone that kind of practice.

Rule #2 - I agree with you. Do NOT blindly follow someone else's portfolio when you don't even understand the how the company works. Nestle is definitely NOT a buy anymore, it is a hold at best, or he could've sold it off for a neat profit if he chooses to as his profit already flipped. So everyone else is quite late to the party now. Note: Remember that everyone was lamenting that the price of Nestle was too high when it was around RM60, and that they missed the boat. It just depends on one's perspectives.

Rule #3 - To borrow a line from WB, do NOT forget rule #1 and rule #2.

I admire people actually invest in those penny stocks with no proven track record... Those are heroes with brave souls....

always ask yourself why the company kept paying dividend if they could use cash for business expansion?

I hope you don't think "finance background = great investors."

there are many finance graduates every year, but I'm not sure if 50% of them are good / great investors.

Major shareholders need the money?

Financial bloggers such as dividendmagic generally make money from sponsored posts and affiliate links. Financial bloggers are generally marketers of financial products. They might give you some basic advice here and there but that's about it.

The recent Etoro endorsement was just a way for the writer to gain more commissions. Etoro is not regulated in Malaysia. If suddenly Bank Negara blocks fund transfers from Malaysian accounts to Etoro, investors will be massively screwed. The same thing happened with Luno for bitcoin in Malaysia previously. Etoro is also providing CFD (option on the stock) vs normal share purchase. Big big difference.

Nowadays financial bloggers also showcase their entire portfolio. They do this so that more readers will purchase the same stocks as them and prop up their portfolio values.

The universal rule here still applies- "those who can't do, teach". If you read the blog post on 16 March 2020, it was mentioned that "my return right now is at a measly 0.91%. Since inception." If you look back at the posting dates of the freedom fund, the first post is December 2015. If you had put your money in a risk-free FD account for the past 4 years, you would have outperform this portfolio without the need to do any single research.

On a separate note, if you're into stocks, dividend yield is just a distraction for me personally. A company with high yield is not necessarily a good buy. A company can take on debt to pay dividends even if it's making losses. Share price will always move upwards in the long term if and only if revenue and net profit grows.

In the short term, glove counters such as Top Glove are trading way ahead of their fundamentals due to FOMO and pure speculation. So do expect a sudden drop in share price of these counters when a vaccine is found.

This post has been edited by johnsonlim777: May 23 2020, 05:22 PM

Why divide magic is not responding to this post?

Additional note:

Don't ever trust financial gurus who claim they found a method to always win at trades and are trying to sell you their course, but never once do they show you their portfolio.

Even those who show you their portfolio can be suspect because of reasons above.

Easiest and safest way to make dividend is to just put money into buying blue chips like public bank, maybank, tenaga.

Dividend Magic hope he will respond

So which broker is regulated in SC that's offering zero commission for international stocks?

And what about eToro FCA/ASIC regulation vs SC?
If regulated in SC, what are the available remedies to compensate investors in case broker defaults?

If licensed in Malaysia you can make clams in Malaysia. At very least, you are protected for RM100k under the Capital Markets Compensation Fund.

There's still so many alternative payment methods like Paypal, Neteller, Skrill and so on that would bypass any such restrictions. eToro is one of the easiest to fund and withdraw from, it's no wonder that so many Malaysians use it. Personally I only follow DM to see what he's up to and see if I can get any useful information from it. I don't follow any of his suggestions for the most part because the window has long closed.

None of the foreign brokers are licensed in Malaysia. In the end it doesn't matter. If you want to make money, you have to grow some balls. If you need tongkat for every investment you make, might as well dump all your spare cash into EPF and just wait for retirement.

yeah that's fcked up. why do they do that rather than investing back to their core biz?

You know what's an influencer?

Even rakuten trade keep promoting him. LOL.

I personally use eToro for two reasons:

1. Instant funding with BigPay card at favourable exchange rate. I can fund my account in 2 mins max.
2. Regulated in FCA and ASIC, two of the well-known regulators. I personally have my account under FCA.