06-07-2011, 05:27 PM
(05-07-2011, 04:31 PM)kazukirai Wrote: Actually, I took the term 'Dividend Stocks' to mean 'Stocks that pay dividends' which is actually pretty broad instead of the REITs, Trusts and Preference Shares universe that the article seems to imply. Judging from Jared's response, I see I'm not the only one.
I have to disagree with you considering that one-third of the dividends stock basket are non-REIT/trust. And there is no PS in the basket either.
Notable missing from the Dividend stock includes Singpost, MIIF and SPAus.
Also I have to ask whether a low cap company can qualify as a 'dividend stock' or do you really need to be of a certain size; and if so how big? The smallest cap on the dividend stock basket was First REIT at 493 million.
I own many 'small cap dividend stock' that quick easily trump the average yield from the dividend stock basket. They have been paying yearly dividends in the years I own them.
Yield is based on my ave purchase price average over the yrs I own them. Mkt cap is based on last FY closing price x no of shares.
1) Popular 8% 134 million
2) CWT 8.7% 588 million
3) PTC 11.7% 86 million
4) Datapulse 7.2% 121 million
5) Neratel 15.5% 133 million
Of cos owning shares in a small cap companies entails risk its own and some may argue that the higher yield probably correctly reflect the risk compared to the large cap.