Not sure if anyone covered this...but I find the following tips useful to increase wealth more quickily and also safely. '
(experts might want to give this a miss)
I shall go to the point, as I know most people don't have so much time to read long essays.
1) go only for company which pays dividends, and increasing trend (this sounds familiar if you have been reading my earlier posts, if not, no harm going through). Avoid companies which doesn't and those which has rights history, as personally i prefer a uni-directional money flow.
2) this point is important. plan your cash cow company carefully. ☆☆☆Singapore companies are unlike US ones like MCD Colgate etc which pays quarterly dividends. Here, some homework and planning is required.
A) try not to have heavy dividends in certain months and then dry months thereafter. This will make the compounding effect even greater and over long term...wow!!!
B) my suggestion divide a year into 4 parts or even 6 parts if possible, and plan in such a way that the dividends are well distributed in those quadrants.
C) don't sit on your dividend. U have a few vases half full or half empty depending on how u call it, n a jug of water, pour into those vases which have the least water.
D) use it to buy the next company before it releases news of any impending dividends.
E) don't worry too much about brokerage fees. Just as an illustration, u see, a 1000 buck dividend can buy 1000 metro shares costing near 900. Don't think too much of the 25 bucks brokerage fees as remember, you are there for the long haul. in a year, if metro pays 5c dividends, the stock itself would have paid 1/2 of such fees and the next year, its all yours. we are not trading, but we are in for the long haul, so in the long run, the compounding effect would have more than made up for those fees.
F) keep repeating process, disregard market movements, till you become rich.
G) this works even for small sums of money. Don't think only millionaires or billionaires can play this game. Remember u are here for big money in the long haul. 25bucks brokerage fee...treat as one time, u will get it all back n much more.
3. Don't forget your own health and don't forget to spend time with love ones.
4. Don't forget to donate to needy once you are there.
my 2 cents.
(experts might want to give this a miss)
I shall go to the point, as I know most people don't have so much time to read long essays.
1) go only for company which pays dividends, and increasing trend (this sounds familiar if you have been reading my earlier posts, if not, no harm going through). Avoid companies which doesn't and those which has rights history, as personally i prefer a uni-directional money flow.
2) this point is important. plan your cash cow company carefully. ☆☆☆Singapore companies are unlike US ones like MCD Colgate etc which pays quarterly dividends. Here, some homework and planning is required.
A) try not to have heavy dividends in certain months and then dry months thereafter. This will make the compounding effect even greater and over long term...wow!!!
B) my suggestion divide a year into 4 parts or even 6 parts if possible, and plan in such a way that the dividends are well distributed in those quadrants.
C) don't sit on your dividend. U have a few vases half full or half empty depending on how u call it, n a jug of water, pour into those vases which have the least water.
D) use it to buy the next company before it releases news of any impending dividends.
E) don't worry too much about brokerage fees. Just as an illustration, u see, a 1000 buck dividend can buy 1000 metro shares costing near 900. Don't think too much of the 25 bucks brokerage fees as remember, you are there for the long haul. in a year, if metro pays 5c dividends, the stock itself would have paid 1/2 of such fees and the next year, its all yours. we are not trading, but we are in for the long haul, so in the long run, the compounding effect would have more than made up for those fees.
F) keep repeating process, disregard market movements, till you become rich.
G) this works even for small sums of money. Don't think only millionaires or billionaires can play this game. Remember u are here for big money in the long haul. 25bucks brokerage fee...treat as one time, u will get it all back n much more.
3. Don't forget your own health and don't forget to spend time with love ones.
4. Don't forget to donate to needy once you are there.
my 2 cents.
Nice strategy for dividend investing, especially on item 2A and 2B. Dividend is also one of my consideration factor when comes to selecting stocks.
ReplyDeleteCheers!
thanks. cos i realise that lots of investors wait for that yearly dividend n go 'dry' for most of the other months. this strategy takes care of even cash flow n also removes speculation n timing the market, hence emotional up/downs with immense upside in long run. in addition, for retirement, just stop reinvesting div n u simply got a regular cash cow!!!
ReplyDeletecheers.
19 Jan 2015 is the day for better execution of this strategy
ReplyDeletehi cw, true, but the other side of the coin is that more accessibility to blue chips also means more chances to make mistakes, as not all(quite a number, actually) blue chips are suitable for this long term strategy. so market liquidity will improve after 19 jan, but more people might end up buying the wrong stuff also.
Deletethe flip side, is that it's a good thing for people who are old birds and know exactly what they should buy and they will buy it if it turhs affordable for them.
Hi Paul, as always great advice! I wish I can make my blog posts like yours - quoting A.Einstein "Everything Should Be Made as Simple as Possible, But Not Simpler". I tend to be long-winded. Argh...
ReplyDeleteIt is great coincidence that I recently blogged about all the stocks listed on SGX that have paid out dividends in each of the past ten years. http://www.valuestocks.sg/2014/12/160-sgx-listed-stocks-that-paid.html
It does not have yield figures, it does share some details in terms of month and absolute dividends per share. Maybe useful to some of your readers (but likely not yourself the guru - ha!)
hi Henry,
ReplyDeletewah piang, don't praise me so much lah. makes my head big big.
on a serious note, i think this website is very useful http://www.valuestocks.sg/2014/12/160-sgx-listed-stocks-that-paid.html
thanks!
hmm was just thinking (but maybe I am asking for the ridiculous..lol),
if got a list which shows which companies can raise dividends over the past decade...that's will be damn great, in the singapore context, where big companies are still small compared with the US ones.
ok, wish u a great merry christmas ahead, Henry!!!