Shares & Derivatives
Is StarHub Borrowing to Pay Shareholders Dividends?
By ProButterfly  •  February 20, 2018
by: Tam Ging Wien - Avoid Falling into this High Yield Trap As investors, we like to invest in stable stocks with high and predictable dividends. After all, that is the point of income investing isn’t it? We invest our hard earned money to and we want to see income coming back in a periodic and predictable manner. We also look at the yield and are happy that the dividends is outpacing inflation. We likely to see the stock price increase as the performance of the company increases thereby allowing it to increase its dividends. These are stocks that we want to hold on forever. However, what if I tell you that sometimes, the dividends that you see is not what is seems to be? Based on the closing price of StarHub Ltd (StarHub) on 30-Dec-2016 at $2.81 and a dividend of $0.20, StarHub trades at a yield of 7.12%! ......
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By ProButterfly
Tam Ging Wien has been an avid equities and real estate investor for over 10 years. His passion for financial education and training stems from a desire to help others help themselves achieve financial freedom. In 2017 he published his first book entitled REITs to Riches: Everything You Need to Know About Investing Profitably in REITs.
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