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Read older post on? High Dividend Yield Stocks? - Part 7
I believe all investors will love high dividend yield unless you are a day trader who don't really need to care on dividend.
Imagine a high dividend yield bandwagon is rolling past you. A few people on the back of the wagon are partying and playing music of their lives and singing the song of high yield. You may be unable to resist the sweet sounds being played and run to join the party.
But, before you jump on the bandwagon, you may want to wonder a bit as there can be more than one way of looking at high yield; its associated risk of future dividend cut and impact to its stock price.
A. High Yield High Growth
I don't think you can find it now in the current market. If you can find it, don't tell anyone. Sell your car and mortgage your home and load it up! Just kidding. LOL
You are more likely to find high yield high growth stocks during big bear markets but you may not have courage at that time to load them up so it is pretty hard to load up high yield high growth stocks in your portfolio.
B. High Yield Low Growth
Even in the current market condition (STI at 2936 quite near to its recent high), you can still find some low hanging easy reach high yield stocks. How come?
Unless you believe that market is lack of smart money or big boys, otherwise there may be valid reasons why these big boys or smart money choose not to chase them up and naturally it will cause the yield to fall for new buyers.
High yield may be an indication of low growth and investors are expecting higher income to compensate for low growth so market may have priced in that expectation. Read more...[caption id="attachment_2044" align="alignright" width="150" caption="Photo by Lachlan Hardy"][/caption]
Read older post on? High Dividend Yield Stocks? - Part 7
I believe all investors will love high dividend yield unless you are a day trader who don't really need to care on dividend.
Imagine a high dividend yield bandwagon is rolling past you. A few people on the back of the wagon are partying and playing music of their lives and singing the song of high yield. You may be unable to resist the sweet sounds being played and run to join the party.
But, before you jump on the bandwagon, you may want to wonder a bit as there can be more than one way of looking at high yield; its associated risk of future dividend cut and impact to its stock price.
A. High Yield High Growth
I don't think you can find it now in the current market. If you can find it, don't tell anyone. Sell your car and mortgage your home and load it up! Just kidding. LOL
You are more likely to find high yield high growth stocks during big bear markets but you may not have courage at that time to load them up so it is pretty hard to load up high yield high growth stocks in your portfolio.
B. High Yield Low Growth
Even in the current market condition (STI at 2936 quite near to its recent high), you can still find some low hanging easy reach high yield stocks. How come?
Unless you believe that market is lack of smart money or big boys, otherwise there may be valid reasons why these big boys or smart money choose not to chase them up and naturally it will cause the yield to fall for new buyers.
High yield may be an indication of low growth and investors are expecting higher income to compensate for low growth so market may have priced in that expectation. Read more...
[/caption]
Read older post on? High Dividend Yield Stocks? - Part 7
I believe all investors will love high dividend yield unless you are a day trader who don't really need to care on dividend.
Imagine a high dividend yield bandwagon is rolling past you. A few people on the back of the wagon are partying and playing music of their lives and singing the song of high yield. You may be unable to resist the sweet sounds being played and run to join the party.
But, before you jump on the bandwagon, you may want to wonder a bit as there can be more than one way of looking at high yield; its associated risk of future dividend cut and impact to its stock price.
A. High Yield High Growth
I don't think you can find it now in the current market. If you can find it, don't tell anyone. Sell your car and mortgage your home and load it up! Just kidding. LOL
You are more likely to find high yield high growth stocks during big bear markets but you may not have courage at that time to load them up so it is pretty hard to load up high yield high growth stocks in your portfolio.
B. High Yield Low Growth
Even in the current market condition (STI at 2936 quite near to its recent high), you can still find some low hanging easy reach high yield stocks. How come?
Unless you believe that market is lack of smart money or big boys, otherwise there may be valid reasons why these big boys or smart money choose not to chase them up and naturally it will cause the yield to fall for new buyers.
High yield may be an indication of low growth and investors are expecting higher income to compensate for low growth so market may have priced in that expectation. Read more...
