QUOTE(Oracles99 @ Feb 23 2010, 10:57 PM)
Everything in the stock market is not cast in stone. The prices of shares are not stable. It moves up or down due to investor expectations. Are u able to withstand the pressures of price fluctuations?
You must not be emotionally attached to yr investment. If the hint of an economic storm appears on the horizon, u would have to make a hard decision whether to hold on or to sell yr investment. In short, u must know what u are buying.
For example, in 1997/1998 the entire stock market collapse irrespective of whether the share is paying good dividends or not.
No one can guarantee that the share which is paying good dividends now will continue to do so in the future. It only make the chances of the company failing less likely.
For example BAT is good stock but the tobacco industry is a sunset industry. In 4 to 6 years time, what would happen to the industry?
Yes just like recently financial meltdown, most of the market plunged during last year March time frame, and guess what all counters going south including all the blue chips ..... and whoever grab it that time will get a handsome gain.................
for tobacco industry, you can said it is a sunset or probably over matured biz....the main factors contributed to it such as illicit cigaratte is trending up, heavy tax imposed almost every years, some scary pictures, soon to face out 14-sticks packaging............ thus resulted contraction in overall market demand...........................................
i have been tracking the dividends for years...and also getting some of the dividends and below are some info
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Turnover 1,964.0 1,947.0 2,036.0 2,772.0 3,010.0 3,073.0 3,199.0 3,236.7 3,564.2 3,612.5 3,830.0 4,135.0 3,923.0
Profit 483.0 629.0 380.0 506.0 607.7 662.9 758.2 782.1 592.8 719.7 731.0 811.0 746.0
EPS 169.0 220.0 133.0 177.2 212.8 232.2 265.5 273.9 207.6 252.0 256.3 284.3 261.5
Net DPS 154.0 155.0 100.8 170.0 245.4 216.0 310.0 248.4 250.1 254.0 256.5 265.0 236.0
1. Over the 1997 to 2009, average dividends at 220.1 cents and total payout of 28.61
2. Revenue going up trends due to price increase, even though demand is going down
Digi.............recently seeing and up trend in dividends... 54 cents on the way will be expired on 4-Mar-2010