Any dividend stock experts here?
Hi, Im currently researching dividend stocks and I know the general rule of thumb and things to look out for, however I did find some stocks that were exceptions to the rule and seem better for it, so Im hoing if there are any people here who have experience in holding dividend stocks can clarify my doubts.
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72783492 : What are your doubts?
Amina28OP 72783492: Basically Ive been told that stocks with higj dividend yields are bad, which has been my consensus too, since researching stocks on the SGX filtered by highest yield, most of them showed really bad stocks or companies just on the downhill, but I came across one at 55% yield, a 7 cent stock with a quarterly dividend payment of 1 cent. And looking at the stock history its stayed roughly at that number for the last few years. So Im confused as to whether this is a good stock or a bad stock. the stock in question is FSL trust btw.
73223055 Amina28OP: I looked into it - FSL is a foreign company and the stock isn't 7 cents, its half a cent(SGD-USD conversion rate) the reason there are warning signs with these types of stocks is because your basically handing them free money and getting basically nothing back. I calculated the dividend payout which would be 0.0275 cents that's 1/4th of a U.S. cent, not saying you shouldn't invest but take into account the potential for market growth (aka basically nothin) What you should look for in a dividend stock is a growth in value thats on an exchange that's trusted and low risk such as the S&P 500
DenizH : Just buy SCHD or JEPI be done with it.
DenizH : Recently I bought $O, good price now to get, collect dividends and out $60 ish then switch to $SCHD is the best plan. Remember to understand market rotations are key to beat well the SCHD and all the market. Whichever sector are sold off, you buy, whichever sector are too hot, you sell that sector and buy doomed sectors. My 23 years experience and it worked. Don’t trade options by the way. Never options …