25-12-2013, 05:44 PM
When invest in stock market, why are people so hard up over dividends?
That day I discussion stock market with friend, they say they look at dividends first. No dividend no talk. even my finance trained friend also say he look at dividend first. I hear him say this buei ta han dunno what he thinking.
I was thinking, dividends dont matter. The idea of receiving dividends every year sounds nice, but if you think carefully, its just left pocket right pocket. When you receive dividends, the share price will drop together with the dividend.
In fact, having no dividend is better because you are in control of when you receive your dividend.
Shouldnt other valuation ratios like PE, NAV, debt, gearing,growth be more important?
So really, why are people so hard up over dividends when they invest?
no offense to dividend warrior, just trying to have healthy debate so everyone become wiser. I know dividend warrior subscribe to the idea of dividend + growth. I dont agree with dividend, but I agree with growth.
[Image: dividend.jpg]
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This chart shows the returns you get when choosing high dividend stocks vs low dividend stocks. As you can see, there is NOTABLE NO DIFFERENCE!
[Image: TeHD54B.png]
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Sing Inv SING INVESTMENTS & FINANCE LTD
[Image: JcBlPkY.png]
Look at this company
Do rights issue. Then after that do dividend issue.
How dumb is that? Give you a Drumstruck , then take away the whole chicken
This type of company must avoid because they are doing stupid things
--------------------------
High Dividend stocks - Good or bad? Buy liao can huat big big?
I see buying dividend stock seems to be very in. Buy liao every year company give you money. Shiok shiok.
Is it really good or bad? Dividend give you liao the price will automatically devalue. End up also back to square one mah? Left pocket right pocket.
Why is it when come to investing, people think of dividend as 1 of the top priority? Is it the right way of investing? 11:
Preferably Please dont say something generic like "depend on strategy". Break it down into its nuts and bolts in terms of risk reward liquidity returns etc
That day I discussion stock market with friend, they say they look at dividends first. No dividend no talk. even my finance trained friend also say he look at dividend first. I hear him say this buei ta han dunno what he thinking.
I was thinking, dividends dont matter. The idea of receiving dividends every year sounds nice, but if you think carefully, its just left pocket right pocket. When you receive dividends, the share price will drop together with the dividend.
In fact, having no dividend is better because you are in control of when you receive your dividend.
Shouldnt other valuation ratios like PE, NAV, debt, gearing,growth be more important?
So really, why are people so hard up over dividends when they invest?
no offense to dividend warrior, just trying to have healthy debate so everyone become wiser. I know dividend warrior subscribe to the idea of dividend + growth. I dont agree with dividend, but I agree with growth.
[Image: dividend.jpg]
-----------------------------------
This chart shows the returns you get when choosing high dividend stocks vs low dividend stocks. As you can see, there is NOTABLE NO DIFFERENCE!
[Image: TeHD54B.png]
-------------------------
Sing Inv SING INVESTMENTS & FINANCE LTD
[Image: JcBlPkY.png]
Look at this company
Do rights issue. Then after that do dividend issue.
How dumb is that? Give you a Drumstruck , then take away the whole chicken
This type of company must avoid because they are doing stupid things
--------------------------
High Dividend stocks - Good or bad? Buy liao can huat big big?
I see buying dividend stock seems to be very in. Buy liao every year company give you money. Shiok shiok.
Is it really good or bad? Dividend give you liao the price will automatically devalue. End up also back to square one mah? Left pocket right pocket.
Why is it when come to investing, people think of dividend as 1 of the top priority? Is it the right way of investing? 11:
Preferably Please dont say something generic like "depend on strategy". Break it down into its nuts and bolts in terms of risk reward liquidity returns etc