Read? Dividend Investing: When Does It Work, And When Doesn’t It Work?
Why would Investors go for Dividend Investing?
One of the earliest pieces of research into dividend investing, all the way back in 1984 by Shefrin and Statman, posited that investors’ preference for dividend investing was due to several reasons, amongst them:
To better exercise control over the management of the firm. i.e by demanding managers pay out dividends from earnings, shareholders ensure that the managers do not spend it on initiatives which are not beneficial to the shareholders
As a form of self control, so as not to overspend by selling too much of their stocks and running out of money
A preference for having something tangible in hand. i.e. a bird in the hand is worth two in the bush (CW8888: Real money in our pocket especially for retirees to fund their living expenses! Money already spent will never lose to Mr Market ever agin! LOL!)
Loss and regret aversion, by getting dividends to make up for capital losses when investing in stocks (CW8888: Panadols!!!)
To achieve freehold dividend income for life; it is a very long road, up and down valleys and mountains to Rome!
Along this long road to Rome, Panadol! Panadol! Panadol!
Suck plenty of Panadols till we reach Rome!!!
Pain no more.
Freehold dividends for life Pom pi pi!
Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (15)
Posts
CW,
ReplyDeleteNo wonder Singapore born and bred tech companies would prefer to list on Nasdaq or in Hong Kong!
What's the point if STI is mainly for yield hogs and old fogeys looking for capital preservation?
LOL!
What happened to the animal spirits during our CLOB trading days?
How about the penny stocks mania (manipulation) of the "golden trilogy" by our friendly Malaysian syndicate?
Old fogeys kenna slaughtered until chop fingers liao?
STI may become like my stamp collection if youths of today not interested anymore...
I mean if they all go trade/invest in more happening HSI, S&P 500, or Nasdaq stocks, or worse, ignore stocks totally and go all-in into cryptos!!!
Who will bid up the STI in the future?
Wait! Maybe SGX can pivot and market STI as the yield hog mecca in Asia!?
Shiok if STI can generate 10 to 15% p.a. yield, no need to join 1M65 liao!
DeleteUncle8888,
ReplyDeleteThink most people now want capital gains. Dividends are only a bonus :P
They've been spoilt by US stocks & cryptos over the last 10 years.
Millennials & Gen Z only buy & hold for dividends if it's in the 20% to 100,000% yields, like staking those weird DeFi cryptos.
This is also the strange phenomenon with residential properties becoming so hot now. Mass market only start rushing to buy condos & landed when prices have been going up for a while. Never mind if it means rental yields will be low. They are interested in capital gains, not income stream.
Spur,
DeleteBut, but the nation building media is telling us more Singaporeans are voluntarily contributing to CPF...
Who to believe?
Lol!
Smol,
DeleteThat's where percentage becomes important!
With today's Uni grad millennials & higher average salaries, just using $1K-$7K to do SA top-ups to reduce income tax will skew the picture almost 180 degrees compared to our time, or Uncle8888's time. :P
But what % is this $1K-$7K compared to their total salary? If the typical young executive couple uses $50K/year for condo mortgage, and $100K yearly for US Tech & cryptos, then it's still pretty much high growth mentality.
Uncle8888,
I took a glance at your linked article ... wahh, see boomers no up!
"So, this is good news for dividend investors if you are Boomer, but not so good for everyone else!" LOL!
At the end of the day, different styles of investing can work. It's all in the execution & ongoing management of the assets. The underlying companies or entities ultimately need to generate excess cash, else one fine day they'll implode, usually suddenly. Momentum & trend following style hopes that they can read the signals in time to avoid that.
Spur,
DeleteI couldn't have said it better!
You the man!
Aiyoh, wife and I get like S$300k in SGX stock dividends and residential property rental every year, and these are nice bonuses to add to our work income. Sponsors our annual vacations and have a nice nest egg to help in case we need to have early retirement. Is this not good?
ReplyDelete