Actually it's not really accurate to calculate as such because most of the time, the 'good' dividend counters are normally priced in for future dividends.

This is because the market is confident of its ability to pay dividends and also its growth prospects.

For instance in regards to FD, you would have to put the sum in April 2011 in order to see the interest payment in April 2012. And you have to be 'in' the FD to earn the dividends. Where as for stocks, you don't have to be commited for the entire year. You can be an investor for a day and still be eligible for the dividend. Thus the opportunity costs of FD is higher for people who have funds to invest.

In regards to TDM, currently priced ar RM4.73. Buying now for the dividend to be paid this year (May 2012), doesn't seem very lucrative in terms of yield. But if compared to FD, it is still better. Because in April 2011, TDM is only priced < RM3.00. If the same amount is used to buy TDM or put in FD, and the sum is 'locked in' for the entire year, the FD will nett you 3.25% this year. But TDM will nett you >57% including capital gains and dividends.

I quoted this example because stocks unlike FD has the ability to grow (and shrink!). Thus it is more important to judge a dividend stock not by it's immediate yield (Current prices vs dividend), but rather the growth prospects of it's business in the future which will naturally affects the dividend. And for FD, you would have to 'earn' the dividend by being locked in. Only comparable if using data for the stock from the same time the FD is locked in.

So if you think you spotted a dividend stock by it's dividend history, check the growth of the EPS as well. Is their business expanding, are they growing, are they healthy in terms of cash generation etc?

Noob's question: On what day we must own a stock in order to be entitled for the dividend?

For dividends, the most important date is the ex-date.

If you sold before the ex-date, you won't be entitled. If you've bought it on the ex-date itself, you won't be entitled.

Example,

if Ex-date is 2nd April, you would have buy the stock before 5pm of 1st April and hold it to the next day to be eligible for the dividend. If you sold your stock before 5pm 1st April, then you get nothing.

1st April 5PM > Dividends < 2nd April 9AM

Notice the Cum date it's like this.

DIGI *C

If i got money,is also my choice..loil

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Added on April 3, 2012, 1:56 pmCan i know why ppl say maybank and pbbank pay good dividend?
Sorry i quite noob..
Like last year pbbank,give 20 + 25 %...if i not wrong means rm450 rite..For RM13,u get back RM450?..Its not quite alot righte?

Like bjtoto RM4.20,u get back RM210..Isnt it better?

This post has been edited by armadasaxon: Apr 3 2012, 01:56 PM

if u used the last divvy payout & @ current price..... maybank yield is far more attractive than pbbank...... but how sure r u that maybank is going to give the same amount of divvy in the coming payout?

haha..i not sure ..i asking a question,u ask me back..lol..
What i meant wascomparing last year payout(all the divvy that was paid last year).

PBBANK declared 48% last year. 1000 units you have is RM480, that's right, nothing to do with the current price, it's about the par value. RM13 per share means you need RM13000 to purchase 1000 units excluding the service charges/stamping/etc.

Quite a lot.

total noob at stock exchanges, but are REITs a good way for beginners to go into divvy investment?

reits are usually more stable than other stocks with high dividend yield too

cool, but from my understanding REITs are mostly dependent on property rental yields right? so it's heavily dependent on property market?

What is happening to this Wellcall? Up for so much recently!!! The dividend yield lower now...

I guess what matters is dividend yield. At RM13 per share, DY (minus tax) is more than 3% - OK but not great.

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Added on April 3, 2012, 8:50 pmThere is a thread dedicated to REIT. Let's discuss over there

This post has been edited by river.sand: Apr 3 2012, 08:50 PM

Maybe future dividend will be higher? Are you calculating the DY based on last year's payout?

Past 2 years, their interim dividends is about 2.5 to 3.5 sens. Maybe now starting this year will start paying out 4-5 sens dividend?

Their 1st quarter results are very encouraging, higher than any quarter of last year. There is no reason why they won't pay higher dividend if their EPS is growing. I believe Wellcall is 50% dividend policy but recent years they have been paying much higher.

......................

This post has been edited by Scissorshand: Apr 3 2012, 10:15 PM

Wellcall is a manufacturing of rubber hose.

Are we using more rubber hose now?

Normal household don't use much hoses other than their gas hose or garden hose.

These hoses are used primarily in industries. If industries are picking up, then definitely higher demand. Or better cost control.

Panamy going down this few days.....Wondering what's brewing behind

Supermax? Going to pay dividend?