Thursday, 1 May 2014

Book : Get Rich with Dividends











  • Diversify your holdings within a dividend portfolio.

    • Don’t invest for income according to how much money you need;

    invest in quality companies with strong dividend performance.

  • When looking at payout ratios, use cash flow.

  • Know your stocks’ dividend growth rates.


    • Yield
    Dividend growth
    Payout ratio

    Never buy a stock simply becuase its yield is attractive.

    Dividend Growth is the preferred way for young investors.

    The stock market is all about growth.

    A key component in the formula is dividend growth. Without it, the dividend will lose its buying power due to inflation. Even with low inflation, over the years, the money won't buy as muh as it used to.

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    2 comments:

    1. Unknown2 May 2014 at 16:55:00 GMT+8

      For me, I focus on the operating cash flow to determine the company's health.

      Dividend is just a bonus to shareholders. Sometimes it may not be good if the company keep paying out dividends to shareholders instead of putting it to good use.

      Regards,
      Gerald
      SG Wealth Builder (www.sgwealthbuilder.com)

      ReplyDelete
      Replies
      1. CreateWealth88883 May 2014 at 00:15:00 GMT+8

        We need to look at both dividend and dividend payout ratio at the same time and not just dividend only.

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