Study the dividend stocks and payout dates
One of my methods of choosing a stock (besides the usual PE ratio, EPS, etc) is by looking at its past dividend payout. Some companies have dividend payouts twice or 3 times a year while some only have once. You can refer to The Star‘s page HERE to check out the past records of the dividend payouts.
Courtesy of http://www.freefoto.com
Do remember that dividend payouts are normally associated with the quaterly reports or annual reports, and these reports are released (usually) at the same time each year. That’s why you can somehow predict the payout period, though it is still a risky business. Prediction can go wrong anytime if you’re unlucky.
By the way, always look only at FINAL or INTERIM dividend, and not at SPECIAL dividend.
And if you’re lucky enough to go in before they announce the dividend payout, you might be in for some short term gain, provided you are able to sell before the EX-DATE. But if the stock price has already gone up significantly before the dividend announcement, then you might want to wait it out or look at other options.
Please bear in mind that this method can be quite risky. So make sure you do the regular checks – EPS, PE, annual reports, industry performance, charts, etc. If the company is sound and good, then you can try.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment