As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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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Saturday, 18 June 2011

Stock Dividends - Sir, how do you want it to be done? Raw, medium or well done?

Read? High Dividend Yield Stocks? (10)

When you received your stock dividends, how do you want it to be done? Raw, medium or well done?

The way you treat it may determine how likely you are going to hold or sell.

Discount

When you received your stock dividend, you mentally discount your holding cost against the dividend received. It lowers your holding cost. So shiok! You may  even tell your wife. "Honey, it is cheaper now."

Every year it will become cheaper after receiving more dividends Why sell? Since it is getting cheaper soon. 

Pain Killer

Wah, so shiok! My dividend is coming in July. What paper losses? Never mind le. Oh ya! SCB account will be ready in end Jun so no problem to reinvest the dividend for compounding "interests" - Eight Wonder of The World.

After receiving so many doses of pain killers, pain no more liao.

Returns on Capital

You add the stock dividend in your portfolio P/L statement as part of the total realized gain. You are more concern on XIRR or CAGR of your portfolio. You could be one of those retail investors who are actively managing their portfolio and trying to optimize their XIRR or CAGR.

Sir, how do you want it to be done? Raw, medium or well done?

1 comment:

  1. Hi CW,
    Well done lah; but not necessary don't sell. Every thing in this world should have it's price. The only thing is when and how to get replacement.
    And whether you are satify with the replacement or not?

    ReplyDelete

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