Written by Wilfred Ling      Monday, 29 August 2011   I have listed out many disadvantages of purely focusing in investing in dividend paying stocks. The financial industry is well aware of people who like some kind of cash flow from their investments. Thus, the financial industry manufactures synthetic financial products that pay cash flows similar to ‘high dividend yield’ stocks. Such synthetic financial products can be found in unit trusts, anticipated endowments and structured products. But what many investors do not know is that they have been taken for a ride most of the time. It is known among financial practitioners that many unit trusts pay ‘dividends’ out of the capital. This means, they have to sell assets to pay unit holders. Put it the other way round, investors are merely receiving back their own money. ‘Receiving back your own money’ can also be seen by those anticipated endowments. The ......