As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Monday, 24 July 2017

Using dividends to provide a stable income


Read? Using dividends to provide a stable income

Those positive results do not mean that the income is guaranteed, of course, as share prices can also drop.

Investors who put money into Keppel Corp in 2014 when the share price was more than S$11 in order to get a high dividend, for example, have seen the share price fall to just over S$6 and annual dividends drop from 48 cents per share to 20 cents.

CHOOSING SHARES

Individuals investing in shares for their dividends will need to select them carefully so that they balance the potential returns with the risks of investing.

Simply picking shares which have the highest dividend yields is not a particularly challenging process, as investment advisory firm The Motley Fool observes.

However, investors need to look beyond the yield and consider the company’s financial performance as well as its rate of dividend growth.


CW8888: Another theory and concept writing!

Who has the wisdom eyes to look years ahead?

Writers?

Our investing experience is very personal and practical on the ground; you don't make money or lose money during your time of investing and that doesn't mean other EARLIER or LATER investors will have the same outcome as you.


Read? Invest In Fallen Angels For Lifelong Dividend Income???

Over decades; our investing outcome will depend on

Method. Mind and Money Management

Market timing and Position Sizing will eventually determine our investment performance outcome and set us for future sustainable retirement income from our net worth.






1 comment:

  1. "Simply picking shares which have the highest dividend yields is not a particularly challenging process, as investment advisory firm The Motley Fool observes."

    Hahaha!!! This is a red herring AKA BS advice. Even bei kambings know better than to simply select highest dividend yielders for "stable income".

    I'm sure those investors who bought into SPH, Singpost, Sembcorp, Keppel, etc 4 years ago did their homework into earnings growth, business prospects, cash flows, expansion plans, debt levels, balance sheet strength. And not simply becoz "high dividend yield".

    Anyway stocks in Singapore not suitable to me for "stable income". Even for the so-called strongest backbone blue chip companies of Singapore economy, they haven't proven themselves capable of providing consistent increasing dividends year after year.

    Singapore (and most Asian) stocks are mainly for capital gains. This means investing at the right times, going in BIG, and riding them for as long as possible until the trend changes.

    ReplyDelete

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