As we are know, Value Investing is supposed to look at long term perspective and at times is it very hard to hold on to something (invisible shares in our case) for very long time. Hence, the regular dividend profits came in handy to dilute the "pain". Hence, one of my stock picking criteria is good track record of Dividend paying history.
For thinking out loud, following are my strategy in picking the dividend stocks to invest (do note that I am a small investor and thus blue chip is out of my league at the moment, I guess I will need to wait until SGX implements the odd lot transaction i.e. less that 1,000 shares a lot) :
1. Identify the stocks that fit my criteria (i.e. share price less than $1, pass my internal Fundamental Analysis assessment, including good dividend paying history) which are paying the dividend at least one month later (for example, I will be searching for suitable stocks which are paying dividend in the month of June 2014 or later).
2. The declared dividend is more than 3% dividend yield.
3. Hold on to the share for at least 3 weeks after the Ex-date (through my research, I am basing on the assumption that that the stock price will usually drop from the Ex-date onwards but if it is a value stock, it will restore to its pre-Ex-date price from third week onwards).
That's it!
This is my simple strategy in picking up dividend stocks, I will update you with my very first maiden stock and its progress soon.
Cheers!
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