Shares & Derivatives
Focus on low payout, high dividend income stocks with good business models
By Investment Moats  •  March 10, 2012
Focus on low payout, high dividend income stocks with good business models spon sembcorp 1 I used to not look past anything that yields less than 4% dividend. For me they are unappealing and not being able to pay a lot of dividend indicates that they are higher risk than the usual high yielding dividend stocks. Well my exercise with Keppel Corp (read here) and Noble Group (read here) indicates that chasing for dividend yield can be dangerous for your portfolio long term
  1. Some stocks pay high dividends to attract you at the expense of growth. They usually pay out > 80% of their profits or free cash flows. There isn’t much left to grow if the opportunity arises
  2. Most dividend investors would love stable predictable dividend payouts that are uniformed. Due to the business nature, some stocks like Keppel can pay out special dividends. Looking at a 10 year time frame those special dividends do add up as well
  3. Dividend Stocks pay ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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