(28-07-2012, 06:23 PM)lonewolf Wrote: [ -> ]But if the said 'meat' is present, that means you got some of these high dividend yield stock cheap, which implies a high dividend yield.
I make my buy/sell decision using Market Yield ie. based on current market price and not the original buy price.
Using this approach results in a higher absolute total dividend rx.
For eg. you bought $10k worth of stocks at 10% Yield some years back and now the market value is $20k.
Case (1) : Don't Sell
Asset = $20k (mkt value)
Div = $1k
Yield at cost = 10%
Yield at mkt price = 5%
Case (2) : Switch to another higher market yield stock = 8%
Asset = $20k (cost and mkt)
Div = $1.6k
So, a higher Div = $1.6k vs Div = $1k (if don't sell). The potential added benefit is a higher possibility (me thinks only) of Capital Gains for the new stock, assuming we are looking at non-Growth stocks. The risk is of course the new stock I buy stagnates or even drop while the price of the sold stocks continue to find favour with the market and continue rising eg. many of the stocks I'd sold
PS. Fortunately for me, the stocks I switched to had also risen. Perhaps a case of 'rising tide lifting all boats'?? Only time will tell...
(28-07-2012, 06:44 PM)KopiKat Wrote: [ -> ] (28-07-2012, 06:23 PM)lonewolf Wrote: [ -> ]But if the said 'meat' is present, that means you got some of these high dividend yield stock cheap, which implies a high dividend yield.
I make my buy/sell decision using Market Yield ie. based on current market price and not the original buy price.
Using this approach results in a higher absolute total dividend rx.
For eg. you bought $10k worth of stocks at 10% Yield some years back and now the market value is $20k.
Case (1) : Don't Sell
Asset = $20k (mkt value)
Div = $1k
Yield at cost = 10%
Yield at mkt price = 5%
Case (2) : Switch to another higher market yield stock = 8%
Asset = $20k (cost and mkt)
Div = $1.6k
So, a higher Div = $1.6k vs Div = $1k (if don't sell). The potential added benefit is a higher possibility (me thinks only) of Capital Gains for the new stock, assuming we are looking at non-Growth stocks. The risk is of course the new stock I buy stagnates or even drop while the price of the sold stocks continue to find favour with the market and continue rising eg. many of the stocks I'd sold
PS. Fortunately for me, the stocks I switched to had also risen. Perhaps a case of 'rising tide lifting all boats'?? Only time will tell...
Even if there is not much growth after the switching, the increase in div from 1k to 1.6k is evidently profitable, provided div is sustainable.
i am aiming to do that with some of my reits.
(28-07-2012, 06:16 PM)KopiKat Wrote: [ -> ]It does appear that in recent weeks, STI had been doing rather well compared to other regional markets. Just this week, I was surprised when HSI was doing badly but STI still ended ok (IIRC, slight +ve).
Perhaps, for now anyway, we have become a 'safe haven' for investments???
Or, if you look at not just SPH, quite a few of the stocks in my Div Yield Watch List like SIAEC, STEng, SATS, Starhub, SingTel,... are doing rather well. Even many REITs.
To me, it looks like Dividend Yield stocks are now in demand. Perhaps many are finally fed up with the low bank interest + high inflation rate + fear of property price peaking and are shifting their funds to our this fav class of stocks??
A Bloomberg article on this..
Singapore Stocks Beating World as Swings Narrow
Quote:I have been selling, like you, and being left with little choices in my above category of stocks. I have shifted my focus to small caps stocks + the newly listed A-HTrust. Ya, taking more risks in my greed for higher dividends.. 
The yield margin compression on "safe haven" defensives relative to "risk free" yields does make it tricky to do yield arbitrage - have been surprised myself at the extent of this compression past few weeks. With the 10-yr SGS at record low sub 1.4%, inflation at 5% and CBs poised to ease even more, wonder if this is only just the beginning of the bull run in safe haven defensives...?
[At height of '07 bull run, I remember CMT yield even falling below 10-yr SGS yield of 3%! Before it all came crashing down with onset of GFC. Now: CMT yield sub 5% vs 10-yr SGS sub 1.4%.]
[Image: yieldcurve_10yr.gif]
(29-07-2012, 08:00 AM)swakoo Wrote: [ -> ] (28-07-2012, 06:16 PM)KopiKat Wrote: [ -> ]It does appear that in recent weeks, STI had been doing rather well compared to other regional markets. Just this week, I was surprised when HSI was doing badly but STI still ended ok (IIRC, slight +ve).
Perhaps, for now anyway, we have become a 'safe haven' for investments???
Or, if you look at not just SPH, quite a few of the stocks in my Div Yield Watch List like SIAEC, STEng, SATS, Starhub, SingTel,... are doing rather well. Even many REITs.
To me, it looks like Dividend Yield stocks are now in demand. Perhaps many are finally fed up with the low bank interest + high inflation rate + fear of property price peaking and are shifting their funds to our this fav class of stocks??
A Bloomberg article on this..
Singapore Stocks Beating World as Swings Narrow
Quote:I have been selling, like you, and being left with little choices in my above category of stocks. I have shifted my focus to small caps stocks + the newly listed A-HTrust. Ya, taking more risks in my greed for higher dividends..
The yield margin compression on "safe haven" defensives relative to "risk free" yields does make it tricky to do yield arbitrage - have been surprised myself at the extent of this compression past few weeks. With the 10-yr SGS at record low sub 1.4%, inflation at 5% and CBs poised to ease even more, wonder if this is only just the beginning of the bull run in safe haven defensives...?
[At height of '07 bull run, I remember CMT yield even falling below 10-yr SGS yield of 3%! Before it all came crashing down with onset of GFC. Now: CMT yield sub 5% vs 10-yr SGS sub 1.4%.]
[Image: yieldcurve_10yr.gif]
Wah..it pays to be as well read and resourceful as you..
I was afraid I'll be like Cinderella, so, I'd left the Ball early, thinking it's close to MN. Now, it looks like the Ball may have actually only just started!
(29-07-2012, 08:48 AM)KopiKat Wrote: [ -> ]Wah..it pays to be as well read and resourceful as you..
I was afraid I'll be like Cinderella, so, I'd left the Ball early, thinking it's close to MN. Now, it looks like the Ball may have actually only just started!
Be careful of nonsense coming from a mountain tortoise!
(29-07-2012, 08:54 AM)swakoo Wrote: [ -> ] (29-07-2012, 08:48 AM)KopiKat Wrote: [ -> ]Wah..it pays to be as well read and resourceful as you..
I was afraid I'll be like Cinderella, so, I'd left the Ball early, thinking it's close to MN. Now, it looks like the Ball may have actually only just started!
Be careful of nonsense coming from a mountain tortoise!
Understood, but the image remains strong...
[Image: 180px-PoolOfTears.PNG]
(29-07-2012, 08:54 AM)swakoo Wrote: [ -> ] (29-07-2012, 08:48 AM)KopiKat Wrote: [ -> ]Wah..it pays to be as well read and resourceful as you..
I was afraid I'll be like Cinderella, so, I'd left the Ball early, thinking it's close to MN. Now, it looks like the Ball may have actually only just started!
Be careful of nonsense coming from a mountain tortoise!
Ya lol! No matter what happens in the market, i usually B/S too early.
It's alright for me as i am a "Rojak" investor who tries to make use of "everything" (TA, FA, Market's sentiment, even my guts feelings) in the market that can help me to make a profit in the long run.
"Chinese Rojak" happens to be one of my favorites.
(29-07-2012, 09:57 AM)Temperament Wrote: [ -> ]Ya lol! No matter what happens in the market, i usually B/S too early.
It's alright for me as i am a "Rojak" investor who tries to make use of "everything" (TA, FA, Market's sentiment, even my guts feelings) in the market that can help me to make a profit in the long run.
"Chinese Rojak" happens to be one of my favorites.
Looks like we may be from the same MBA school -
Management
By
Accident ie. we learn from getting into accidents (learn from actual mistakes) in the street, not Wall Street, haha..
(29-07-2012, 10:57 AM)KopiKat Wrote: [ -> ] (29-07-2012, 09:57 AM)Temperament Wrote: [ -> ]Ya lol! No matter what happens in the market, i usually B/S too early.
It's alright for me as i am a "Rojak" investor who tries to make use of "everything" (TA, FA, Market's sentiment, even my guts feelings) in the market that can help me to make a profit in the long run.
"Chinese Rojak" happens to be one of my favorites.
Looks like we may be from the same MBA school - Management By Accident ie. we learn from getting into accidents (learn from actual mistakes) in the street, not Wall Street, haha..
To tell the truth hoh, anyone who says he doesn't learn from mistakes is the biggest liar in the world. This chap really doesn't exists. This fact may be only consolation for us provided we are able to survive and prosper despite making mistakes in the markets. Anyway, who doesn't?:
Recently two news catch my attention, which is related to SPH law suit with Yahoo. Third news is a change in media industry.
The law suit will influence SPH digital strategy, and the new industry change will help SPH to increase its advertising fee. All that will help SPH to migrate from paper to digital.
Media company Singapore Press Holdings (SPH) has now cited 254 articles from its stable of newspapers which it says Yahoo reproduced without permission.
This is more than 10 times the 23 articles it cited when it first filed its suit against the Internet search giant for copyright infringement in November.
http://www.straitstimes.com/breaking-new...-infringed
Media company Singapore Press Holdings' suit against Internet company Yahoo over copyright infringement has taken a new turn.
Yahoo has withdrawn one of the grounds of the counterclaim it filed against SPH
http://www.straitstimes.com/breaking-new...gainst-sph
Newspapers and magazines can now include online readers in their circulation numbers in a move to reflect the consumption of digital content in today's hyper-connected world.
This new rule, along with other new guidelines for print media, were announced on Friday by the Audit Bureau of Circulations (ABC) Singapore, which said that the changes would take effect immediately.
http://www.straitstimes.com/breaking-new...on-figures