I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

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.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Thursday, 8 April 2010

High Dividend Yield Stocks? - Part 4

High Dividend Yield Stocks? - Part 3

How does the high yield came about?


1. The high yield came from the company paying 90% of its earning as stock dividends. With little retained earning, it is harder for the company to grow itself using internal resources.

2. The high yield came from the company paying out less than 60% of its earning as stock dividends. The company has retained some of its earning either as financial cushions or building up its internal resources for its future growth.

Do you prefer 1 or 2?

If you choose 1, then the story goes like this:

Father A works very hard and collect his salary from his boss. When he reaches home; he distributes almost all of his pay to wife and children and let them decide how they should spend their money. Father A has very little money left to invest and is unable to build up his net worth.

Father B works very hard and collect his salary from his boss. When he reaches home; he distributes half of his pay to wife and children and let them decide how they should spend their money. Father B then invest the other 50% wisely and slowly build up his net worth.


Who you want your father to be?  Father A or Father B

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