Hi,
I'm planning to start a high dividend portfolio. Where can I look for high dividend yield stocks?
In choosing high dividend stocks, what regard do you intend to give to what the share price is doing? Any other considerations apart from the yield?
Hi,
I'm planning to start a high dividend portfolio. Where can I look for high dividend yield stocks?
Seriously who cares what the SP is doing when your getting a +double digit yield, using my situation how do you or anyone else justify selling down a stock yielding over 14% :dunno:
Valid points Julia. Does the yield always decline with the share price?Sure, the 14% is good if your SP is rising or even static, but haven't we all seen many, many people just watch their capital diminish because "well, it has such a good dividend".
Are you serious? Say you have $50,000 in a stock yielding 14%.
That's $7000 p.a.
If the stock declined in its capital value by, say 10%, your effective total yield becomes just $2000. And if the SP falls say 20%, then you're in the red to the tune of $3000.
Real Estate Capital Unit (Yahoo = 40% gross)
But they are high dividend yielding.
Perhaps im wrong but i classify yield as return on investment, if my 50K is still getting me (14%) 7K i cant see a problem...the SP is a side show after you enter, of course before entry the SP is all important because it determines yield, i entered all my high yielding stocks close to bottom or at close to intermediate bottoms, that's why there high yielding.
Over the last 14 months there are people that paid ridiculously low prices for all sorts of great dividend and distribution paying stocks...now pulling yields of over 30 and 35%...fortune does favour the brave.
This mob stopped paying dividends over a year ago. Guess I should do my own research more thoroughly.Multiplex Acumen Unit (Yahoo = 16.1% gross) have declined and flatlined in price substantially over the years.
Add Morning Star dot com dot au in there too. Register at .............you can run a fundamental scan ranking ASX stocks on dividend yield (+ other variables) for free, using MSN money website or Comsec, and other broker websites, there is other free sites.
Before buying a stock based on dividend yield check that the yield is sustainable by looking at the operating cash flow generation of the company vs market capitalisation (same as CFO per share/share price). If the dividend yield is higher than the cash flow yield then I would think twice about investing as the company is likely paying dividends out of retained earnings/debt. Don't fall in the yield trap. Some of those high yielders could end up like ponzi schemes.
Exactly. The other consideration is whether you'd prefer to own a company which focuses on growing the business rather than paying profits out to shareholders.I agree with bilo.
The yield stated is usually the "historical yield". In situations where the SP has plummetted, the historical yield jumps as it is still using the previous dividend with the current SP. Knowing whether the divvy is sustainable in the future is the catch.
Of course, the divvy could be retained by borrowing to pay for them; like TLS.
Cheers,
Kenny
The reverse, Wysiwyg. Think about it in dollar terms. If you buy a $1 share with a 10% dividend, you receive 10 cents per share. The number of cents paid doesn't change with the alteration of the SP, as you know, so if that $1 share becomes worth $2, then the yield obviously reduces to 5%.Valid points Julia. Does the yield always decline with the share price?
OK, but do you see the point I'm trying to make if the SP falls?Perhaps im wrong but i classify yield as return on investment, if my 50K is still getting me (14%) 7K i cant see a problem...the SP is a side show after you enter, of course before entry the SP is all important because it determines yield, i entered all my high yielding stocks close to bottom or at close to intermediate bottoms, that's why there high yielding.
Over the last 14 months there are people that paid ridiculously low prices for all sorts of great dividend and distribution paying stocks...now pulling yields of over 30 and 35%...fortune does favour the brave.
No - I just don't see it that way, i have a dollar investment in XYZ and am getting a % return on that investment, the SP will do what ever it will.Think about it in dollar terms. If you buy a $1 share with a 10% dividend, you receive 10 cents per share. The number of cents paid doesn't change with the alteration of the SP, as you know, so if that $1 share becomes worth $2, then the yield obviously reduces to 5%.
Likewise, if the SP falls, then obviously your percentage yield becomes higher.
Thus, the reason so many stocks that have fallen through the floor are quoting high yields.
OK, but do you see the point I'm trying to make if the SP falls?
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