dydxequalszero :
I’ve also sold my stock. Based on my buy price of 33.38 on 4 March, I’ve made a profit of $2200 per 1000 shares. This is 4x more than the $540 dividends I’ll be getting. It didn’t make sense to hold on to the stock. I would hold on if the price was 34.00 or something and it won’t make a much of a difference if I took dividends or sell.
The bonus shares is not really a bonus because the price will readjust down by about 10%. So although you have more shares, the total value will still be the same. I believe after ex-date of dividends, the price will fall to around 34.80 and if it falls 10% after bonus shares, it’ll be around 31.20. I’ll buy back then. So I have taken $2200 profit and have the same shares back at an even cheaper price than 33.38 I paid to start with.
Nothing wrong with those who are doing dividend investing though. Saves you the anxiety from short term fluctuations and continuous monitoring of share prices too. To each his own, as long as you make money
dydxequalszerounfilteredtruths:
Yes, but I feel we shouldn’t try to influence others to buy or sell without expert knowledge. Based on my own trading experience buying SG stocks near all time highs has never paid off. SG stocks are not like US stocks whereby the whole world is pouring in the money, so the stock can keep on rising like Nvidia and Meta. After all those companies have huge potential for growth but not local companies. And with interest rate cuts coming later this year, banks will have lower NIM for profits and this may cause the stock to drop. So buying now presents more risk than potential benefits.
unfilteredtruthsdydxequalszero:
Even with "expert knowledge", no one can predict the stock market. Simply do your own research, look at the facts, and make the best guess you can with all the information out there.
Interest rates can be "subjective", I think. High interest rates: higher NIM --> more profits Low interest rates: lower cost of borrowing --> more profits ^ depends on the extent of change to the interest rates and its impact on individual business though
unfilteredtruths : Keep waiting and price becomes higher and higher
dydxequalszero : I’ve also sold my stock. Based on my buy price of 33.38 on 4 March, I’ve made a profit of $2200 per 1000 shares. This is 4x more than the $540 dividends I’ll be getting. It didn’t make sense to hold on to the stock. I would hold on if the price was 34.00 or something and it won’t make a much of a difference if I took dividends or sell.
The bonus shares is not really a bonus because the price will readjust down by about 10%. So although you have more shares, the total value will still be the same. I believe after ex-date of dividends, the price will fall to around 34.80 and if it falls 10% after bonus shares, it’ll be around 31.20. I’ll buy back then. So I have taken $2200 profit and have the same shares back at an even cheaper price than 33.38 I paid to start with.
unfilteredtruths dydxequalszero: I agree with you.
Nothing wrong with those who are doing dividend investing though. Saves you the anxiety from short term fluctuations and continuous monitoring of share prices too. To each his own, as long as you make money
dydxequalszero unfilteredtruths: Yes, but I feel we shouldn’t try to influence others to buy or sell without expert knowledge. Based on my own trading experience buying SG stocks near all time highs has never paid off. SG stocks are not like US stocks whereby the whole world is pouring in the money, so the stock can keep on rising like Nvidia and Meta. After all those companies have huge potential for growth but not local companies. And with interest rate cuts coming later this year, banks will have lower NIM for profits and this may cause the stock to drop. So buying now presents more risk than potential benefits.
unfilteredtruths dydxequalszero: Even with "expert knowledge", no one can predict the stock market. Simply do your own research, look at the facts, and make the best guess you can with all the information out there.
Interest rates can be "subjective", I think.
High interest rates: higher NIM --> more profits
Low interest rates: lower cost of borrowing --> more profits
^ depends on the extent of change to the interest rates and its impact on individual business though