Dividend-investing
used to be the norm between the 1930s and 1960s. Wives were outliving
their husbands. So, how did the wives survive after their husbands were
gone? You guessed it. These widows invested in stocks that paid
dividends. Back then, it was such a common investment strategy that
people started calling it the "Widow's Portfolio". Not only the widows
did it, insurance companies, investment banks and funds started doing it
too.
However,
the huge multi-year bull run in the 1990s changed all that. Dividends
investing fell out of fashion. It was considered boring, dull and less
profitable. A new generation of greedy investors and traders wanted to
earn a quick buck in the short term. Everyone thought the era of
income-investing was over. Everyone was going for capital gains.
Where to learn to trade??
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Originally posted by Asromanista2001:
you mean you got them from moneychangers ???
if like that .............how you get any interest from them ???
i thought you open fx deposit a/c with a bank ??
Yup I open fx deposit a/c with bank. Just nice 1 year. I took out everything!
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Originally posted by Asromanista2001:
you mean you got them from moneychangers ???
if like that .............how you get any interest from them ???
i thought you open fx deposit a/c with a bank ??
Are you a FX trader ? Seems like you know alot about FX ?
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Originally posted by Demon Bane:
Are you a FX trader ? Seems like you know alot about FX ?
i also know a lot about politics but i'm not politician leh...........
AUD is safer than NZD..........wait for market crash again then go in...........normally these currencies crash by 30% or slightly more so got chance to make good money plus interest.......
never ever invest just aiming for the interests...........when stocks crash they will reduce interests and value plummet.............not worth it........
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Originally posted by Asromanista2001:
i also know a lot about politics but i'm not politician leh...........
AUD is safer than NZD..........wait for market crash again then go in...........normally these currencies crash by 30% or slightly more so got chance to make good money plus interest.......
never ever invest just aiming for the interests...........when stocks crash they will reduce interests and value plummet.............not worth it........
I've frens trading FX....tough to make $....usually they lose $...Do u have success in trading FX ?
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FX hard to trade....trade in FX might as well trade in stock....><"
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Originally posted by maxsee:
FX hard to trade....trade in FX might as well trade in stock....><"
How much money must we have to trade stocks? What's the margin for 1 lot ?
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Originally posted by maxsee:
FX hard to trade....trade in FX might as well trade in stock....><"
you're right............FX is probable the toughest thing to trade.............
it's not like stocks which have fart greater momentum plus currencies are mostly ranging as countries wouldn't want their currencies to get too high or low............
biggest problem with FX is actually the 24hr trading but many ''gurus'' bullshit to people say 24hr is actually better................
also FX has too many ranging periods and retracements................either you trade it very short-term or long-term....................in the middle, normally very difficult.
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Nowadays, not many bother about the long-forgetten dividend investing anymore... :x
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Originally posted by Asromanista2001:
you're right............FX is probable the toughest thing to trade.............
it's not like stocks which have fart greater momentum plus currencies are mostly ranging as countries wouldn't want their currencies to get too high or low............
biggest problem with FX is actually the 24hr trading but many ''gurus'' bullshit to people say 24hr is actually better................
also FX has too many ranging periods and retracements................either you trade it very short-term or long-term....................in the middle, normally very difficult.
Aiyah, investments sure have risks...the higher the returns, the higher the risks!
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Originally posted by eagle:
Nowadays, not many bother about the long-forgetten dividend investing anymore... :x
you know nowadays many people want things quickly so they willing to take bigger risks mah.........
also nowadays the stock markets waaaaay more volatile than last time so dividend investing also not as safe as in the past.....unless you willing to let go at small loss..
just like those people invest in currencies with very high interest rates (the Turkish Lira used to pay like 17%)................but when the value of the currencies crash, interests artes also drop..............it'll take many years to recover .............
dividend also the same..........when property,etc bubble over and the stocks crash the dividend also will drop..............if hold on must wait very long to recover unless earlier sell off at loss............
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dividend also the same..........when property,etc bubble over and the stocks crash the dividend also will drop..............if hold on must wait very long to recover unless earlier sell off at loss............
Not true. Today I feeling lazy, so lazy to explain further
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Originally posted by eagle:
Not true. Today I feeling lazy, so lazy to explain further
is it becoz REITS are required to give a certain percentage of their income back to shareholders as dividends ?
but if deep recession comes then you can bet on many tenants leaving so their income from rental will drop...............so will then the dividends given out.....
right ?
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Originally posted by Asromanista2001:
is it becoz REITS are required to give a certain percentage of their income back to shareholders as dividends ?
but if deep recession comes then you can bet on many tenants leaving so their income from rental will drop...............so will then the dividends given out.....
right ?
Ok not so lazy today
Dividend paying stocks do not just include REITs. They include business trusts, and some other equities as well, for example, SPH, Singtel, Starhub, SingPost, and bank stocks. There are also smaller cap companies that gives rather good dividends, and this include GRP, Silverlake, Aztech, Innotek, Neratel.
In judging which to buy, of course we have to take into account the current economy, your personal financial status, on top of the financial and business health of the stocks you have.
For example, I bought Starhub at $1.90 when it lost the BPL. Why did I buy it when everyone on my breakfast table was saying sell?
Reasons
1) Near 10% dividend (it was 4.5cts per quarter that time)
2) Defensive telecom business with extremely high barrier to entry, coupled with already paid-up infrastructure cost
3) With advent of smartphone and higher speed broadbands, we can expect higher revenues
4) Free Cash Flow exceeds dividends paid outWhile it's debts are rather high, it is to me acceptable for a relatively new company (compared to Singtel) in such a defensive sector.
Another example, I bought SPH at $4, $3.80 and $3.14, so an average of $3.65.
Reasons:
1) Defensive newspaper businesses (monopoly in Sg). I believe the impact of the internet has already been factored in, and any changes due to the internet from now on will only be slow.
2) Nearly 7% dividend yield.
3) Ventures into property sector was successful. With upcoming Clementi Mall, we can expect higher revenues
4) Dr Tony Tan as CEO
5) Super Ah Gong linked. Won't let this propaganda tool die offOn hindsight, I made a bad decision to wait at $3.50 instead of jumping it at $3.51 when it announced the takeover of clementi mall at a price much higher than the next competitor.
Something like that lor... Down then down, I buy more... The dividends were rather consistent throughout the recession.
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Originally posted by eagle:
Ok not so lazy today
Dividend paying stocks do not just include REITs. They include business trusts, and some other equities as well, for example, SPH, Singtel, Starhub, SingPost, and bank stocks. There are also smaller cap companies that gives rather good dividends, and this include GRP, Silverlake, Aztech, Innotek, Neratel.
In judging which to buy, of course we have to take into account the current economy, your personal financial status, on top of the financial and business health of the stocks you have.
For example, I bought Starhub at $1.90 when it lost the BPL. Why did I buy it when everyone on my breakfast table was saying sell?
Reasons
1) Near 10% dividend (it was 4.5cts per quarter that time)
2) Defensive telecom business with extremely high barrier to entry, coupled with already paid-up infrastructure cost
3) With advent of smartphone and higher speed broadbands, we can expect higher revenues
4) Free Cash Flow exceeds dividends paid outWhile it's debts are rather high, it is to me acceptable for a relatively new company (compared to Singtel) in such a defensive sector.
Another example, I bought SPH at $4, $3.80 and $3.14, so an average of $3.65.
Reasons:
1) Defensive newspaper businesses (monopoly in Sg). I believe the impact of the internet has already been factored in, and any changes due to the internet from now on will only be slow.
2) Nearly 7% dividend yield.
3) Ventures into property sector was successful. With upcoming Clementi Mall, we can expect higher revenues
4) Dr Tony Tan as CEO
5) Super Ah Gong linked. Won't let this propaganda tool die offOn hindsight, I made a bad decision to wait at $3.50 instead of jumping it at $3.51 when it announced the takeover of clementi mall at a price much higher than the next competitor.
Something like that lor... Down then down, I buy more... The dividends were rather consistent throughout the recession.
So eagle, are you a full-time stocks trader? Trading stocks need more capital than trading FX right?
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No, I seldom trade. No time to do so. I have my too many things on my hand already, don't need to add trading.
Trading FX needs just as much capital; mostly you are using leverage, else the brokerage fees can easily wipe your gains. One can use leverage for stocks too, but I don't, and prefer not to at this point. Perhaps I might if and when STI < 2000... There's this share financing plan from banks.
My max holding period so far is about 2.5 years, and that's because my first purchase was around 2.5 yrs ago.
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btw, to answer your question directly...
No, I'm not a full time trader. I've a full time job, and 3 part time jobs.
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Originally posted by eagle:
No, I seldom trade. No time to do so. I have my too many things on my hand already, don't need to add trading.
Trading FX needs just as much capital; mostly you are using leverage, else the brokerage fees can easily wipe your gains. One can use leverage for stocks too, but I don't, and prefer not to at this point. Perhaps I might if and when STI < 2000... There's this share financing plan from banks.
My max holding period so far is about 2.5 years, and that's because my first purchase was around 2.5 yrs ago.
Wow, an expert...I dunno how to trade stocks....where can learn it "FREE" in SG? 3 part-time jobs??!
What jobs? -
I'm not an expert at all. It's a continuous learning process, because the market is forever changing.There are fair share of losses and gains.
No matter where you learn it, be it free a not, nothing beats learning from Mr. Market itself.
My part time jobs are all related... tuition, teaching physics olympiad, and attempting to author an A lvl physics guidebook.
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Originally posted by eagle:
I'm not an expert at all. It's a continuous learning process, because the market is forever changing.There are fair share of losses and gains.
No matter where you learn it, be it free a not, nothing beats learning from Mr. Market itself.
My part time jobs are all related... tuition, teaching physics olympiad, and attempting to author an A lvl physics guidebook.
So you are one of those very hardworking Singaporeans! Do you have debts eg. housing and car ?
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Why is it hardworking? I like what I'm doing, and I find it fun. Hardworking is for things you don't like to do, not for things you like to do.
I have CPF Education Loan, left with about $5k not paid, but I prefer to pay the 2.6% CPF interest because I think I can generate higher returns than that while still being moderately conservative. I only graduated 2.5 yrs ago, wouldn't want a car or house to tie me down so early... My BTO HDB should be ready in about 3 yrs time.
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Originally posted by eagle:
Why is it hardworking? I like what I'm doing, and I find it fun. Hardworking is for things you don't like to do, not for things you like to do.
I have CPF Education Loan, left with about $5k not paid, but I prefer to pay the 2.6% CPF interest because I think I can generate higher returns than that while still being moderately conservative. I only graduated 2.5 yrs ago, wouldn't want a car or house to tie me down so early... My BTO HDB should be ready in about 3 yrs time.
Happy for you! Now you have little debts, better than the average Singaporean with housing + car debts....
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Just spend time doing things instead of complaining and doing nothing.
There are so many things out there in this world to do.
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Originally posted by eagle:
Just spend time doing things instead of complaining and doing nothing.
There are so many things out there in this world to do.
Yeah agree with you....but the debts tied me down leh....
Must kana 4D and Toto or Big Sweep ! Hahaha! 
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I'm learning to trade stocks/shares....hopefully will be the next millionaire soon!