When invest in stock market, why are people so hard up over dividends?

(28-12-2013, 07:33 PM)chialc88 Wrote: WhaKor! PE 1!!!


A Life not Reflected is a Life not Worth Living.

yea! By the way If you want to invest in that company, watch out of the high receivables. Its 50% of NAV. Effectively having a DSO of 6.6months.

They are probably not good assets.

i have said in reality up to 30% of my absolute profit is from dividends. So is dividends important or not? And i do not really go for high dividend stocks though i like dividends of course.

Me too...
Problem is 30% absolute return is too low.

There is always a internal challenge to get better and better %.

Difficult to hold back the urge to get a better yield...

So, after reading Dr Michael Leong's tips, I create tikam tikam fund






A Life not Reflected is a Life not Worth Living.

(28-12-2013, 07:37 PM)wahkao Wrote:

(28-12-2013, 07:33 PM)chialc88 Wrote: WhaKor! PE 1!!!


A Life not Reflected is a Life not Worth Living.

yea! By the way If you want to invest in that company, watch out of the high receivables. Its 50% of NAV. Effectively having a DSO of 6.6months.

They are probably not good assets.

Hi wahkao , what is DSO ?

(29-12-2013, 01:38 PM)Stocker Wrote: Hi wahkao , what is DSO ?

If I am not wrong it means Day Sales Outstanding. A simple example: A company with a monthly sales revenue of $1M and AR of $2M means it has two months of sales outstanding, so its DSO is 60 days.

(29-12-2013, 01:51 PM)Ben Wrote:

(29-12-2013, 01:38 PM)Stocker Wrote: Hi wahkao , what is DSO ?

If I am not wrong it means Day Sales Outstanding. A simple example: A company with a monthly sales revenue of $1M and AR of $2M means it has two months of sales outstanding, so its DSO is 60 days.

If monthly rev is $1m , isn't AR should be $12m ?

Dividends are an important part of your returns. A bird in hand is worth two in the bush.

Some companies are reluctant to give dividends, or give very little dividends. Usual reasons cited are to keep the money for business expansion. It sounds like a Warren Buffet kind of reason, except that the business owner isn't Warren Buffet.

Giving of dividends is probably one of the best signs that the money is all there.

If a company has lots of cash, stingy with dividends but very generous in paying top management, a low or no-dividend policy may simply mean management wants to keep the money for itself. I experienced a lot of them with S-chips. I was fortunate to dump my S-ship shares for only a small loss.

(29-12-2013, 02:18 PM)Stocker Wrote:

(29-12-2013, 01:51 PM)Ben Wrote:

(29-12-2013, 01:38 PM)Stocker Wrote: Hi wahkao , what is DSO ?

If I am not wrong it means Day Sales Outstanding. A simple example: A company with a monthly sales revenue of $1M and AR of $2M means it has two months of sales outstanding, so its DSO is 60 days.

If monthly rev is $1m , isn't AR should be $12m ?

Is there a miscommunication?
Ben's AR = Accounts receivable
Stocker's AR = Annual revenue

(29-12-2013, 06:02 PM)fat al Wrote:

(29-12-2013, 02:18 PM)Stocker Wrote:

(29-12-2013, 01:51 PM)Ben Wrote:

(29-12-2013, 01:38 PM)Stocker Wrote: Hi wahkao , what is DSO ?

If I am not wrong it means Day Sales Outstanding. A simple example: A company with a monthly sales revenue of $1M and AR of $2M means it has two months of sales outstanding, so its DSO is 60 days.

If monthly rev is $1m , isn't AR should be $12m ?

Is there a miscommunication?
Ben's AR = Accounts receivable
Stocker's AR = Annual revenue

Maybe I am not clear in my example. AR = Accounts receivable, ie, amount outstanding at end of a financial period. So back to the same example of the company having a monthly sales of $1M. At the end of its financial year, it has $2M of accounts receivable. Using the formula of DSO = AR/Revenue in period X Days in period, ie $2M/$12M X 365 days, its DSO = 60 days.

Hope it is clear now.

AR Account receivable mah...


A Life not Reflected is a Life not Worth Living.