but normally what i see is:

price 1.00
announcement 0.10 per share
price shoot up 1.10
after ex-date price drop back 1.00

This post has been edited by aerobowl: Jan 3 2012, 10:46 AM

I think brotan is correct la... at least that's what happens technically and reflected in the closing price (green/red). But occassionally, like Digi and a few others it goes North even after div N bonus, like some of panajie's shares ...

hmm... what is correct then? we really gain something from the dividend or actually it is just a "feel good" thing but don't really gain at all?

If you can get those high dividend stock at low price then you can have a very steady income for years. Example, if you can get panamy at RM10 at 2010. Not only your capital double now, but you also able to receive more than 10% dividend yield every year.

PANASONIC MANUFACTURING MSIA


It give RM1.45 for FY2011. So, you are getting around 14-15% dividend yield if your entry price is RM10 without worry much about its share price.
So, i think high dividend is good if you can get it at low price.

This post has been edited by my1ststep: Jan 3 2012, 12:47 PM

So how about those late comers? Any advice to grab such high dividend stocks?

After the X-date the share price is immediately reflected (minus the dividend paid). Whether the price then goes up or down depends on how the market feels about the subject counter. Doesn't matter whether you 'feel' good or not. but in most cases (so far as I know) most counters go south after the Xdate. Some real solid counters like panamy, dlady, digi, and a few others (where the market is confident of the continuing growth and performance) will continue north even after the Xdate.

thanks bro. question is if everything else equal, does dividend stock gives you real more return compare to those who don't?

don't really understand your question. Do realise that the div paid out comes out from the real value of the company, thus it is immediately reflected in the share price on X date. Example if the share closing price immediately before X date is RM1.00 and the dividend is Rm0.20, then on X date it is RM0.80.

But if you are asking wheter a co. that gives div is better than ones that don't, then of course I believe it is, because div comes from real cash (not just paper profits which can be easily manupulated). But there are of course exceptions.

hi

from your reply (2nd part) you understood my question. and i understand your answer

Thanks

You can take a look on wellcal, tecnic, bstead, pie also. They are growing company and high dividend stocks also.

This post has been edited by my1ststep: Jan 3 2012, 02:13 PM

Yup. Excellent companies. But like anything else, do buy a little at a time and not all at one go. No one knows when is the lowest or bottom, so best to average out over time and accumulate these shares.

are those companies fundamentally strong?

my1ststep only deals with fundamentally sound counters, so u can bet they are. but no harm doing your own research.

tx for the info

Thanks for the information. But I do noticed that most of this stocks are all time high.. Shouldn't I wait for retracement before jumping to any boats mentioned above?

Absolutely. Timing is everything in trading. That's why I use the RSI model to help me find good entry and exit points. It does not work all the time (as pointed out by dinamika) but is simple and effective enough to work in the long run (anywhere from 3 to 5 years). You may lose out some opportunities during a bull run and sell a little too late during a crash if you only use the RSI. But for fundamentally sound high dividend yielding companies, the risk is much lower.

But seriously, how often does one see a super bull run or a market crash? I think many of us are anxiously waiting for the next market crash in a while now.

This post has been edited by tohca: Jan 4 2012, 07:03 AM

I used to do that, wait them for correction and buy at low price. But at the same time, i have miss out a lot of good counters like paramon, harison, bstead as they never come down and all the way up. If you take a look at Harison, Panamy, Tecnic's chart, you probably cannot tell when is the correction period and best time to buy it.
Their business are getting better and better and at the same time, they are giving us more and more dividend, so i think it is best to buy consistently just as what you did.

This post has been edited by my1ststep: Jan 4 2012, 07:39 PM

You can always use charts to help you to time your purchases and sales to help you with these shares. If you are more conservative, then rely more on RSI, and if you are more aggressive then you may want to try StochRSI. I've appended below the charts for these 3 counters which you mentioned. If you use RSI then there will be just a couple of times a year which you can buy and sell these shares. But if you use StochRSI then the window opens wider (of course so does errors).

Have a look at them and see if you can apply them to help you make more money.



Attached thumbnail(s)

Hi Tohca,

Thanks for sharing the chart. I think it is the best if we can combine both fundamental + technical analysis before we buy / sell the stock.
Good luck for 2012 and hope we can make more money...

Harison & Panamy's chart look alike.

Price stabilize for 2-3 months already. Also indicated now is the best time for accumulation.

Not sure about Harison, but for Panamy share price will move up when it is getting closer to May'12 aka big dividend month. I am a happy Panamy shareholder since 2010.