Monday, August 4, 2014

If You Are Dividend Stocks Investor, What Minimum Dividend Yield Are You Looking At?

Many of us invested in shares with different strategy (or mixture of different strategies), one of the common strategy is look after the dividend yield as one of the passive income stream. Talking about Dividend Yield (formula : Annual Dividend Per Share / Current Share Price), if this is one of your strategy too, what kind of minimum Dividend Yield are you looking at before deciding whether to lock-in the share or not?
 
Being a small investor and Dividend Yield is also one of my strategy, I am looking at minimum 4% Dividend Yield (at least must be higher than the average inflation rate). What's yours? No worry, I do know that there is no right or wrong answer, just like to have a feel around the floor ;-)
 
Cheers!

20 comments:

  1. You don't bother with dividend payout ratio when evaluating dividend yield?

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  2. CW8888, of course I will lar and of course dividend yield is not the only factor we should be looking at. Just wanted to know whether any other investors will filter out those dividend yield less than certain %, and evaluate further only when it hits the mark ;-)

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  3. i also think debt ratios are very important. for dividends paying companies. How much cash reserves does company has?

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    Replies
    1. temperament : Agreed with you. In fact, there are many other factors to be considered too like PE, ROE etc... but just like to have a flavour for those investor focus on dividend yield, would they use that (Dividend Yield) as first filtering criteria. Maybe my post is not clear on that. Thanks anyway for the comment.

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  4. i agree must be more than current inflation rate.

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  5. You should ask with a list of questions with weight-age for filtering

    If investing is so easy, all retail investors will beat CPF OA 2.5%

    Never newbies ask simple questions. Lao Jiao is making investing look complicated.


    LOL!

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    Replies
    1. Hahaha.. yes Lao Jiao (I means, sir)! lol

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  6. Okay. Last poke for the day.

    Don't be a Yield Pig!

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    Replies
    1. OMG! How do you know that I was born in the PIG year? lol

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  7. Whatever it is in the long run, concentrate on long history of dividend paying companies is quite good a bet. Because by default, we have chosen the bootstrap of investing.
    Any way why do you invest? If not for dividend yield must be for capital growth? Of course if you can find both, you have hit the jackpot. Normally it's a compromise. Good dividend yields and a little capital growth. i am happy already.

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    Replies
    1. Hi temperament , very true... Thanks for the advice!

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  8. Hi Richard,

    The minimum percentage yield probably isn't as important if it has a good history of increasing payouts?

    Regards,
    My 15HWW

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    Replies
    1. Hi MY 15HWW : true.. Dividend paying history is important too ;-)

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  9. Hahaha uncle cw love sembcorp and yield is only at 3 percent. Hoops. :)

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    Replies
    1. Hahaha, but I believed SembCorp is only one of his many gems! ;-)

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  10. Have you read my blog posts on Carrot?

    Hidden Giant Carrot. What do you think?

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    Replies
    1. CW8888, no wor, can you provide me the direct link to the post? ;-)

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    2. As retail investors, we must know to dig for details. What do you think?

      Go and dig?

      LOL!

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    3. CW8888, hahaha, you this uncle very one kind lor, I dig and dig also cannot find (within your blog)...ahhhh, maybe I should ask Mr Google instead! lol

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