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

Saturday, 17 September 2011

Investing Made Simple by Uncle8888 (26)

Read? Investing Made Simple by Uncle8888 (25)

Blue Chips Dividend Investing vs Value Investing

Read? Current Dividend Yield is good but avoid falling into potential Dividend Traps (4)

"Less Analyzing. More Investing!" - Createwealth8888

"To make money from the stock market, it is not how well you analyze it. It is how well you invest into it." - Createwealth8888

Blue Chips Dividend Investing is not the same as Value Investing. Value investing is a belief that someone can discover market gems (so-called under-valued stocks) earlier than the rest of players in the stock market. Value investors believe that they have the means to value a stock and determine its margin of safety.

But, the truth is value investing is RELATIVE. The under-valued is PERCEIVED while the market doesn't think so. So it is just an imaginary set of numbers perceived in the mind of a value investor.

Blue Chips Dividend Investing is different. It is ABSOLUTE! Your dividend yield is absolute. You don't need to be a Maths whiz to compute it. The cash you received from stock dividends is real. In blue chips dividend investing, it is less analyzing and more investing. You don't need to attend AGM to find more.

Blue Chips Dividend Investing is simple. You don't need to spend weeks or months to analyze reports and businesses just to buy them.

You only need to understand the following:
  1. Price is what you paid. Dividend yield is what you get for the price you pay for it.
  2. High Dividend Yield of at least 6-8%. Past few years of consistent dividend payout or better still an increasing dividend payout.
  3. Low dividend payout ratio e.g. 50% or below (High dividend payout ratio e.g. 90% or more will easily translate to high dividend yield. It is natural.)
  4. Dividend Growth (Increasing dividend growth will eventually drive the stock price to settle in at the next higher base price in the subsequent market crashes)
  5. ROE of at least 12% or more.
You don't need to be brainy for successful blue chips dividend investing strategy. But, you need to have lots of patience and guts to buy during market crashes. More importantly, you also need to have balls to hold while the stock prices are shooting through the roof.

Why blue chips?

Check? Blue chips

Why blue chips dividend investing? It is easy! When the blue chip is turning blue-black. SELL!


  1. Hi CW8888,

    (1)"To make money from the stock market, it is not how well you analyze it. It is how well you invest into it." - Createwealth8888
    Excellence! WHY?

    i have been trying to practise what you said above since day one. Still analyse a bit lah.

    2) "Blue Chips Dividend Investing is not the same as Value Investing".

    Here i have a slight twist of idea.
    i try to buy in, only after the market has crashed.
    At this time most BLUE CHIP DIVIDEND STOCKS are "Value Investing Stocks too". HA! HA! NO?
    Only thing it is bearry scary to buy now.
    Because all the news/rumours will scare the wit out of you. NO? Ha! Ha!

  2. When i read this article, i can't resist wanting to add something then i realised i had already done.
    Aiya! Why do you say about me again? (Joking Only).


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