Active Trading or Long-term Investing?
Superior return for long-term investing always assume successful re-investing of dividends.
Can we always assume that we can successfully re-invest our accumulated dividends over the years?
Uncle8888 has decided to spend some time to investigate it.
Is this assumption of re-investing dividend possible in real life investing for retail investors like Uncle8888?
Lucky, Uncle8888 has one real-life example to share in the cyberworld.
His Kep Corp!
Uncle8888 has three positions in Kep Corp.
18 Sep 2001: $1.32
26 Mar 2004: $3.22
20 Jul 2007: $12.14 <--- Sinful one!!! Waiting to repent!!!
Pyramid UP
Total dividends collected from 18 Sep 2001 to 26 Mar 2004 was enough to re-invest the dividend as second position in Kep Corp at $3.22 in 26 Mar 2004.
Total dividends collected from 1st and 2nd position from 26 Mar 2004 to 20 Jul 2007 was enough to re-invest the dividend as 3rd position in Kep Corp at $12.14 in 20 Jul 2007
As of yesterday market closing share of Kep Corp at $11.29
Total Return = Total Dividends collected + Capital Appreciation at yesterday market closing price of Kep Corp at $11.29
= 1,657% over 11 years of long-term investing with dividends re-invested.
Right and Hold is King!!!
Posts
you cannot always use either sembcorp and keppel as an example. the sample size is too small.across a vast number of stocks listed the chances of investors being wrong in the long term is much higher.
ReplyDeleteGo to any Value Investing seminar preview. What do we hear from Gurus?
ReplyDeleteIt is either Coca Cola or MacDonald. Right?
And people are paying $X,XXX to hear the rest of the Story. :-)
One swallow does not make a summer. To be realistic, u sud demonstrate with yr full portfolio, not just one of yr best buy. Reinvesting with divs implies buy and buy. I prefer rebalancing my portfolio periodically.
DeleteGreat article.. I see that some companies offer a "dividend reinvestment" plan. These plans take money earned through the dividend disbursement and purchase additional shares or partial shares of the company for the investor.
ReplyDeletebest dividend stocks Singapore
So far probably only 1 true value investing workshop, doesn't use coca cola or macsdonald, or information that can be easily found in books.
ReplyDeleteIt actually teaches sound, real life and practical examples.
It also doesn't charge the $XXXX dollars.
It also teaches you the 3rd element of IH or BB, not just FA and TA.
Hi SweeChye,
DeleteIs it Wealth Direction? Care to share. Thanks.