Homepage
PR Newswire
15-10-2012, 09:00 PM
(15-10-2012, 11:06 AM)KopiKat Wrote:(14-10-2012, 06:37 AM)Temperament Wrote: What about 17cts dividend to be paid on 21 DEC. 2012? SPH's current market price would have gone down below $4.0 if not in anticipation of this current dividend. Going forward is indeed tricky. i think for most of the stocks are the same? Who can be sure what's going to happen next?
Yield stocks like SPH (little or no growth) which pays rather predictable and regular dividends usually behaves like Bonds during cd/xd times. Some analysts even call them semi-Bonds...
The risk is that they may suddenly cut their payout rate and share price may react adversely eg. SBSTransit cut their payout from 100% to 50% in FY08. Was still trading at $3+ in end-07 but after rate cut + drop in EPS,.... now less than half price!
The possibility of SPH cutting their payout rate like SBS Transit is not comparable. Maybe SMRT is. But your logic of SPH behaves like a BOND is maybe comparable.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.