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Anonymous

17 May 2020

When looking for stocks, just buy the one with highest dividends? More dividends better right?

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    What are your thoughts?

    Not necessarily, think most of the commentors have covered it already. Paying out higher dividends does not mean a stock is better, it may actually be trying to attract more investors to buy their stocks, or to give off a "our company is doing fine" facade, when in actuality they are not doing well at all. Take a look at Telcos Starhub and Singtel - their dividends are consistent and attractive, but they are making losses thus far. Instead, what they should be doing is not keeping up their high dividend paying policy, bite the humble pie and use this retained earnings to reinvest and reinvent themselves to become profitable in the face of stiff competition from traditional telcos and new emerging ones like Circles Life. They are running themselves into the ground paying out their dividends.

    Best thing to do - choose the one that fits your investment needs. If you want income (dividends) then you should look for one with extremely strong financial health that can most likely keep up their dividend policy for many foreseeable years to come. If you are looking for capital gain. perhaps a growth stock like Bestworld will do you better.

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      Hariz Arthur Maloy

      Hariz Arthur Maloy

      10 Mar 2019

      Level 15ยทIndependent Financial Advisor at Promiseland Independent

      No, what you want is consistent growing dividends. There are cyclical companies that can give 25% dividends maybe for a year or two and then 0, and then stock price drops.

      Invest in good companies instead of good dividends. Good companies will eventually give good dividends.

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        Ernest Yeam Wee Leong

        Ernest Yeam Wee Leong

        24 Mar 2019

        Level 9ยทContent Creator at www.youtube.com/c/JustBeingErnest

        It can work both way.

        high dividends could be due to it being undervalued.

        high dividends could...

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