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.

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Value Investing
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Saturday, 25 July 2015

Real Lesson on Negative Dividend Yields


Read? China Merchants Holdings Pacific: A Lesson on Negative Dividend Yields

Real People, Real Lesson

Uncle8888's KIT (K-Green) his dividend in specie that was given by Kep Corp in Mar 2011

Over the last five years, he has collected about 40 cts in accumulated dividends; but recently he has returned back all the past dividends of 40 cts plus another 11.5 cts to participate in the right issue of 51.5 cts and put in another 29% of his own capital.

Not negative yield? Then what?

 

 

 

6 comments:

  1. Hi Uncle CW

    On paper, it does look like negative dividend yield, but truth is you are holding more shares now that you can divest and "reclaim" back all those yields back :) It's a reits after all, what does investors expect?

    ReplyDelete
    Replies
    1. These corporate actions are not for retirees who depend on cash flow from their investment portfolio to fund their living. How many retiree-retail investors are fully aware? How many of them have the extras to keep participating?

      Many of them get excited by loud voices coming from the passive income camp.

      How many of us is aware that "more" in the stock market is a double edged sword? Think when the stock price goes South. What happen?



      Delete
    2. Trust but verify every financial advice or suggestion coming from those who have vested interests.

      Delete
  2. Coming from retiree like yourself. Good!

    ReplyDelete
  3. B, temperament and CW,

    Classic difference in opinions between those who are going down the mountain versus those who are climbing up the mountain ;)

    And between those who have 30 and more years ahead of them so they can think for the long haul, and those who may be thinking how many more years do I have... For in the long run - we are all dead. And what's the point again?

    LOL!



    temperament,

    I'm with you on your point B.

    Returns outcome we can't control but we have "financially literate" people who set goals on such consequential outcomes - especially when they are long only investors shooting for relative returns!?

    Shh...

    ReplyDelete
    Replies
    1. Ya. Without this old man here; the financial and investment blog space in Singapore will be dominated by just UP mountain views. Retirees are too much different from wealth builders and no room for any big blunders.

      Delete

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