Last
week we explored on how to pick Reits by diversifying among different
asset types. This week we will explore more on how to check the general
stability of a stock's payout. Not every company pays dividends. The
company’s ability to make regular or steadily increasing cash dividends
over time not only gives us confidence in receiving a regular income
stream, it is also an indication of confidence in the company’s future
business prospects.
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is worth adding some dividend-paying stocks to your stock portfolio, as
it balances your portfolio especially so in times of market downturns
or market uncertainty where capital gains in the stock market are hard
to come by. They are typically stocks of well-established and stable
companies in mature industries with modest growth opportunities. |
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| Where can I check on a stock's dividend yield? |
| The Valuation tab on StockFacts (SGX Website)
shows a company's dividend yield. Take note that dividend yields are
based on current market prices. Changes occur when market prices move. A
higher dividend yield may be attributed to the stock falling in prices.
For example, if you bought a stock which had dropped to $1.50, and it
pays out around $0.10 per share last year, then the dividend yield that
you are getting is around $0.10/$1.50 = 6.66% pa. |
