Monday, December 26, 2016

How to pick the best dividend-paying stocks





While the days of buying a stock and never worrying about it again are over, retirees looking for immediate income will likely have long-term relationships with a few dividend-paying stocks.

With that in mind, here are few tips on how to sort through the options.

1. Look for a company with a long dividend history. Many pride themselves on having continuously paid dividends for many decades.

2. The company's payout ratio should be no more than 80% of its earnings per share. If a company earns $0.50/share and is paying a dividend of $0.75/share, it could be in trouble. It's important to compare the earnings per share and the dividends per share of any investment candidate.

What if you discover that a company is paying out more than it's earning? Maybe it sold off some assets — a one-time event — and it's paying out part of the proceeds in dividends. That's not a problem. However, if the company is recklessly borrowing money to pay the dividends, that's a huge red flag.


3. Choose companies with a worldwide market presence, as they provide somewhat of a hedge against inflation.

4. Pick companies with a stable product line. Whether it's beer, food, oil, or computer chips, the company you're investing in should have a core business with a worldwide need for its product.

5. A dividend-paying company should have lots of cash. Check a company's current ratio, which measures its ability to meet short-term obligations. The "current ratio" is the ratio of current assets to current liabilities. If a company's current ratio is greater than 1, it's in good shape.

6. Pick a company that sticks to its core business. During the Internet boom, many companies were swapping stock and buying up businesses all over the place.

It's one thing when a pharmaceutical giant acquires a smaller drug company. That makes good business sense. It's quite another story when a company like General Electric decides to buy NBC because it wants to be in the media business. Every company needs to keep its competitive edge, but there's a benefit to knowing what you're good at and sticking with it.

7. Stock-price stability is also important. We need to continually remind ourselves that no matter how big or stable a company, its stock price can still fall. The stock prices of many huge, dividend-paying companies tumbled in the 2008 crash. However, they experienced less damage than the total market, and they recovered more quickly.

8. Some of the better yields are in sectors that experience more volatility. A prudent investor will diversify his dividend-paying stocks among different sectors to reduce the overall impact of market swings.

9. Look for a company with a history of buying back its stock. It's a big plus if the company has enough earnings to pay good dividends and buy back stock at the same time. Having stock appreciation in addition to generous dividends is the overall goal.

10. A company with a history of increasing its dividend is ideal, so check to see if the company has a pattern. Many old-line moneymakers have done very well for their shareholders by increasing their dividends every year.

11. Check the current dividend yield percentage. There are many good dividend-paying stocks out there, but you should factor in the price of any company you're considering. Look for companies paying at least 3%.

12. Set a trailing stop loss. You don't want to ride a stock down just to see your dividend income eaten up by loss of principal. A stop loss helps to keep that from happening.A traditional stop loss uses a fixed price. If you buy a stock for $100 and put in a 20% stop loss on it, you have an immediate sell order if the stock drops to $80.

A trailing stop loss is a little more sophisticated; it adjusts the start point every time the stock hits a new high. This gives investors the potential to lock in profits and still protect themselves.

Source : Marketwatch

Saturday, November 12, 2016

Understanding Donald Trump's Win










Yesterday selloff was no joke! Foreign funds sold almost 700 million! Do we going to see massive selling next week! Let's see how things unfold next week! It has been a very shocking week! So shocking that it leaves a bad hangover, worst hangover ever!

(An extract from a post in i3Investor)


I think Trump's big win caught everyone by surprise. I had even predicted that Hillary Clinton will win. But what was MOST surprising was the way the financial markets reacted to Trump's win ...a mini-crash in US stock market then a sharp Trump rally for the US markets ...for Bursa and Ringgit it was drop and drop.

I think Trump's win will be good for America but bad for Malaysia. Part of his pre-election plans were to help America regain its' former glory by "hentam" other nations which he accused them of robbing Americans of their jobs and businesses.

And with Trump coming in as President, his other promise to improve and build infrastructures there creating inflation....made my 2nd prediction might come true after all - the US Fed will raise interest rate in their December 2016 Fed meeting!

This could be the reason why the RM dropped to 4.37 as yield investors took their money off our MGS and stock market to be repatriated back to USA.

Let's see how things develop from here.

Tuesday, November 8, 2016

40 PETUA JIMAT BERBELANJA TAHUN 2017






Berdasarkan Bajet 2017 dan trend dalam negara, keadaan ekonomi dijangka terus tidak berapa baik pada tahun 2017. Peluang kerja, berniaga dan mencari wang tambahan akan terus menguncup, sementara harga barang dan beberapa kos dalam kehidupan pula sentiasa terdedah kepada kenaikan.

Untuk itu, bagi menghadapi hari-hari sukar itu, di sini diperturunkan 40 petua yang boleh menjimatkan wang kita.

1. Sentiasa berbelanja kurang dari pendapatan.
2. Cari cara untuk buat duit lebih setiap hari.
3. Ubah gaya hidup.
4. Rancang kewangan anda.
5. Mulakan menabung.
6. Potong kad kredit jadi  dua.
7. Kurang guna telefon bimbit, kalau boleh jangan pakai langsung.
8. Cari hobi yang boleh tambah pendapatan.
9. Hadiahkan diri dengan simpanan.
10. Tahan nafsu sehingga promosi harga murah baru membeli.
11. Jangan terpedaya dengan “Diskaun Akhir Tahun / Diskaun Awal Tahun”.
12. Ciptakan rasa seronok bila tiada hutang.
13. Kurangkan insuran kenderaan ikut harga semasa.
14. Nikmati hiburan percuma.
15. Kekal prestasi cemerlang dalam pekerjaan.
16. Sibukkan diri agar tidak ke shopping mall.
17. Jangan riadah di Pavillion atau KLCC.
18. Berhenti merokok.
19. Diet dan jaga makan, amalkan pemakanan sihat.
20. Makanan mahal bukan untuk dicuba.
21. Jangan berlumba tukar sofa dengan jiran.
22. Takaful jangan lebih 10% daripada pendapatan.
23. Sediakan dana pelaburan untuk hari tua.
24. Jangan mudah putus asa, kreatif dan kerja lebih masa.
25. Jangan salahkan panda bila kita susah.
26. Beli barang terpakai bukan dosa.
27. Beli Baju di Mydin pun kacak juga.
28. Beli secara tunai, jauhkan riba.
29. Pekan Takbai dan Golok bukan duty free.
30. Jangan jadi hamba bertukar kereta.
31. Guna motor itu ranggi.
32. Jangan berhutang hanya kerana layak meminjam.
32. Berhenti layan Maharaja Lawak atau Gegar Vaganza, Astro bukan percuma.
33. Lupakan impian tambah Neelofa dalam hidup.
35. Kereta kecil tetap bergaya.
36. Azam beli rumah bukan tambah orang rumah.
37. Lupakan sport rim dan spoiler kereta.
38. Bincang dengan keluarga tentang belanja harian.
39. Kurangkan tengok drama orang kaya kaya.
40. Tukar Perdana Menteri....😀😀😀                      

Sumber: http://shahbudindotcom.blogspot.my/2016/11/40-petua-jimat-berbelanja-tahun-2017.html

Saturday, November 5, 2016

2017 will be another Tough Year For Malaysians




Yes, its' November and I can see that next year 2017 will be another tough year for us Malaysians. I need not to be cheong hei and blah blah as to why. You and I know.

Initially, I had wanted to put some money into Bursa stocks last month and this month but after thinking hard on 2017, I decided against it.

The share prices could go lower and cheaper in 2017. A CORRECTION might happened. But please lah, to those scaring people to death with market crash talk, there will NOT be a stock market crash. Go "google" what cause a stock market crash and you will see it won't happen for a long time.

I predict that Hilary Clinton will win and become US President and the US Fed will hike interest rate by 0.25% in December 2016 (like what they did in Dec 2015).

Also there will NOT be a GE in 2017 and our GE14 will only be held in March - May 2018 when the BN 5 year term expires (like previously).

Cheers!