Homepage
PR Newswire
05-08-2013, 05:13 PM
I think dividend yield on cost isn't effective. Even if we are targeting 7% yield and the dividends remained unchanged by the share price doubled and we still hold, our effective yield is only 3.5%. The person could divest his stake and switch to another investment yielding a 'lower' 4% yield and still generate higher cash-flow stream.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.