Simply put, dividend shares are paid out of company profits, and high percentage of those profits going into dividends = less percentage going into further expansion and development of a company.

It's not an issue with, say, REITS or certain blue chip companies like banks and energy, because profits are constant but need for reinvention not so much, but with a company that's about consumables like food, reinvention and research and innovation are necessary to keep them high quality and able to keep consumer demand. The fact that majority of profits are distributed away and not used in company development means the product (i.e. source of profits) might not get enough attention and funding, which means a potential it might become stale, out of trend, or the process of manufacturing becomes outdated and less cost effective.

In the long run this will cause issues with stock capital gains as company cannot sustain their business long enough.

Thank you for the explanation.

I hold Matrix, steady dividend around 5% per year.

What's your average buying price for Matrix?

I like Matrix because the business is quite diversified; property, plantation, and education as well as a little bit of hotel business and clinic..

I collected around RM 1.70, steady dividend yield and the prospect of Bandar Sendayan looks okay was part of my considerations.

A good dividend stock should grow steadily in its share price and dividend yield year after year.

Wellcal (7231), holding since 2010, avg price = 0.35, DY21 project 14.7%, 16% before Covid-19
Zhulian (5131), avg price = 1.25, DY21 project ~ 13.6%, DY20 was 12%
PMetal (8869), avg price = 0.40, DY21 project ~ 7.2%

How do you get such low avg price for WELLCALL?

There were shares split in 2014 and 2017.
Same goes to my Pmetal, bonus and shares split in 2014, 2016, 2021.

Is Scientex is a dividend stock for long term?

Mine is quite diversified

USX: BPY
SGX: REITS e.g. iREIT, Magple, Keppel DC, ASCENDAS
HKEX: GAPACK

now still giving good dividends? from RM50+ drop to current price...long time removed from my watchlist ady...

having some difficulties in choosing steel industry counter, between PMetal and Melewar

Scientex have a property division that almost contribute half of it's group profit

i wouldn't rate property and construction player as a good and stable dividend stock for long term investing

https://klse.i3investor.com/servlets/stk/annent/4162.jsp

What has dividend got to do with share price? Just calculate the percentage la! That's the most important wat

This post has been edited by Barricade: Jun 26 2021, 01:12 PM

If the stock price reduces by 20% while giving you 10% dividend, you are still making a loss.

Any HK or LSE dividends stocks to recommend?

No shit Sherlock. I’m asking you to look at the current stock price and the dividend yield.

If you know then why bother asking? Makes you look stupid you know.

The way you’re responding is even more stupid. You’re stating the obvious. Can’t detect sarcasm?

Like nobody knows share price drops 20% but dividend is 10% and still make a loss.

The point is to look at the current share price and dividend yield. Why bother about historical share price drop? From RM50 drop to RM15…. So does it mean if buy BAT now it will drop from RM15 to RM4.50?

Dumbass. Better stick to kopitiam la /ktard

This post has been edited by Barricade: Jun 26 2021, 05:25 PM

You are the one who suggested BAT? No wonder so angry and unsteady.

Sure smart guy I'll let you win, feels great eh?

This post has been edited by Ayammachiamboss: Jun 26 2021, 05:58 PM