What dividend yield is acceptable to you?

[Julia]

I did say "assuming it fit all your other criteria" at post #3.

So you did, Tyler. But the point some of us are attempting to make is that your consideration should be your overall profitability, viz. what would be the point of choosing a stock which has a yield of, say, 8%, if you are experiencing a capital loss of twice that much?

I know some people buy purely for yield. They disregard what is happening to their capital investment on the facile basis that 'you have only made a loss if you sell'.
Right, jolly good. That's undoubtedly what all the investors in ABC Learning, Babcock and Brown and various others told themselves as their capital dwindled by the day.

 

[tinhat]

4% Franked minimum, otherwise would leave my money on fixed deposit at the bank at 6% and forget about it.

The ASX S&P200 dividend yield is currently running at around 4% p.a. (Source: RBA)

So, you would get that with an S&P200 ETF.

 

[So_Cynical]

I don't have a minimum or maximum figure..i invest in stocks that i believe have a high potential to pay dividends and increase dividends payments going forward.

For example i have 2 parcels of shares in DXS (Dexus Property Group) at an average price of 0.78 CPS, today they announced the June distribution will be the same as the last Distribution 2.59 CPS, so the yield over the last 12 months would be 5.18 CPS a yield for me on my average buy in price of 0.78 CPS of 6.65%

Not to shabby...now with DXS shares currently trading at around 90 CPS i also have capital growth of over 14% and to top it off have established free carry of around 50% i have brought DXS at low points in its price cycle to get the maximum possible yield and taken part profits to establish free carry.

 

[ENP]

You get taxed on the dividends you receive as taxable income. You don't if it remains in the business.

If you have chosen right, the company should be earning a high % return on the retained earnings, rather than paying it out to you. If they pay it out to you, you have to find another investment that is returning a high % back to you, so if you keep it in the bank or any other investment that isn't earning as much as the business itself is by retaining it, then you are losing out.

So ideally, if the business can get a satisfactory high return on the retained earnings, my "acceptable" dividend yield would be 0%

If you need more clarification... read Phil Fishers book "Common Stocks and Uncommon Profits" in the chapter "The Hallabaloo about Dividends"

 

[Calliope]

All my stock portfolio in in Hybrid Securities with dividends averaging about 10%.

"Put all your eggs in the one basket and – WATCH THAT BASKET."
– Mark Twain

 

[tinhat]

All my stock portfolio in in Hybrid Securities with dividends averaging about 10%.

"Put all your eggs in the one basket and – WATCH THAT BASKET."
– Mark Twain

Mark Twain would be the last person you would take financial advice from. Ever heard of the Paige Compositor?