Time and time again, I am reminded of how furiously the price of a stock can drop.
In yesterday alone, the price of Starhub shares dropped by 6.67% ($0.20), which is more than the total dividend issued in 2016. The share price continued dropping today (although at a slower pace).
I reckon, for some dividend investors, Starhub is a key dividend stock and occupies a big portion of their portfolio.
Speaking of dividend stocks, another stock comes to mind: Sabana REIT (Sabana Shari’ah Compliant Industrial Real Estate Investment Trust). Its stock price has dropped since April 2013. Although in recent days there has been a slight uptick.
Yes, on one hand, I wanted to buy dividend stocks, but on the other hand, I have to think hard as to how resilient the business is, and how strong the company is fundamentally (to ensure consistent dividends or even increasing dividends).
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