Posted by paperplane2 > 2015-10-26 21:15 | Report Abuse

Bias, how come u did not show high div yield stocks at a time then crash??

Posted by paperplane2 > 2015-10-26 21:15 | Report Abuse

Jcy?

Posted by GlobalValueInvestor > 2015-10-27 03:10 | Report Abuse

kcchong, mind to reply my email pls? Tqvm!

Posted by I_like_dividend > 2015-10-27 04:06 | Report Abuse

Agree with paperplane2 chosen stocks are bias and DY figures fake one.

More like cost DY than TTM(present) DY.

Posted by kcchongnz > 2015-10-27 05:34 | Report Abuse

Keep this comment as a record first.

Posted by I_like_dividend > Oct 27, 2015 04:06 AM | Report Abuse

Agree with paperplane2 chosen stocks are bias and DY figures fake one.

More like cost DY than TTM(present) DY.

Posted by willynoob > 2015-10-27 09:51 | Report Abuse

I think agree with the figures which KC used. Cost DY is definitely a more appropriate measure since you are making your buy decision at the point of time of Cost DY

Posted by spermwhale > 2015-10-27 10:18 | Report Abuse

Caveat emptor. Don`t based your buy decision on dy alone. During financial crisis, interest rate went up to 12 to 14%. No company can match that and we know what happened to the share price.

Posted by shinado > 2015-10-27 10:27 | Report Abuse

There are many ways to invest and it's up to individuals on their preference. FA or TA. In TA you have many patterns and chart to choose from. Even in FA itself there are so many criteria that one can choose to focus. ROAE, ROIC, cash flow, EPS growth, EV/EBIT, PE, DY etc etc. At the end of the day, you choose based on the methods you are most comfortable with. Everyone have different risk appetites. It's like eating ice cream, so many flavours out there. You pick your flavours and someone else pick theirs. At the end of the day, you all still enjoy your ice cream.

So, at the end of the day, keep doing what you do best. Thanks kcchong for all these articles. It helps to have a look at investing in another perspective.

Posted by 15% to 20% > 2015-10-27 18:16 | Report Abuse

Read from blog..

Assuming you bought a counter at RM1.00 and they make RM0.20 (good right?) every year for 10 years. The price increase and trading in a range of RM1.30 to RM2.50. You didn't sell because they are still a very good counter. Suddenly world economy crash and the company started making losses and trade below RM1.00. What you get? They made so much money yet you get nothing.

Assuming you bought another counter at RM1.00 and they make RM0.20 per year. But they pay you 60% as dividend (60% payout ratio = RM0.12). Same case above, after ten years they trade below RM1.00. But what you get? RM0.12 X 10 years dividend =RM1.20. At least you take back your capital plus profit.

Your return on investment is capital gain PLUS dividend. Always look for company that has consistent dividend payout

Posted by kcchongnz > 2015-10-28 03:12 | Report Abuse

Posted by paperplane2 > Oct 26, 2015 09:15 PM | Report Abuse
Bias, how come u did not show high div yield stocks at a time then crash??

The article is to share if a DY strategy would work by back testing a portfolio of stocks, whenever the time it is now. It is just some rough numbers, never meant to be an academic research or what.

It never meant to be a game of playing around if the market is up, down, boom or crash. And what crash you are talking about? When was the "crash"?

But if you want to see if this strategy still works if there was a market correction, you can refer to this link here:

http://klse.i3investor.com/blogs/kcchongnz/81690.jsp

Yes, it still worked very well with a return of 95%, compared to the flattish market over the same period.

But that analysis was not done purposely to check if it works during a crash or what (what crash?),but purely because I was writing an article which used the portfolio as an example.

Posted by GlobalValueInvestor > 2015-10-28 05:03 | Report Abuse

@kcchong, emailed you few times, did you receive it? Pls reply, thanks.

Posted by Frank Soweto > 2015-10-28 06:04 | Report Abuse

If I buy a good dividend stock and hold it. I receive dividend every year for my expenses. I can play golf every week at different golf courses around the country or in the nearby countries, go for nice dinners, pay my utility bills every month, and occasional travel around the world etc. with the dividends without having to sell my shares.

Very well said. divvy to me is an appreciative bonus especially when the company I invested in doing well and rewarding their shareholders but if you're roti chanai investor investing in longkang shares of course Not only u won't be getting any roti chanai let alone divvy but u will be giving them YOUR divvy LOL

Posted by paperplane2 > 2015-10-28 07:10 | Report Abuse

In first place,u r picking those successful companies.it is bias alredi.

Posted by paperplane2 > 2015-10-28 07:12 | Report Abuse

Second, using such bias perception and comment that as such it eorks for div investing strategy is a total fail statements. You might need data as long as 20yrs, and all bursa stocks, in order to develop a statement tht div investing works, in Malaysia, in 20yrs horizon!

Posted by NOBY > 2015-10-28 07:30 | Report Abuse

paperplane... chk this out... such a study bas been done before...
http://klse.i3investor.com/blogs/kcchongnz/62033.jsp

Posted by kcchongnz > 2015-10-28 13:01 | Report Abuse

Posted by I_like_dividend > Oct 27, 2015 04:06 AM | Report Abuse
Agree with paperplane2 chosen stocks are bias and DY figures fake one.
More like cost DY than TTM(present) DY.

Of course when we back test to check if dividend yield investment strategy works or not we have to base on the dividend and its price sometime ago, then with the share price and dividends received until now we can check if that strategy works or not.

How to check if we are basing on dividend now and share price now. Don't we need time to check?

You always follow blindly, agree agree and agree. But everything I wrote you would disagree, disagree, disagree. You are just like your twin brother here:

[donfollowblindly has left a new comment on your post "Roti Canai” Dividend Yield Investing Strategy My Experience kcchongnz":
Agree with paperplane2 chosen stocks are bias and some stocks DY figure is fake one.
Posted by donfollowblindly at Oct 27, 2015 03:28 AM]

And also where is your triple, truthseeker1 or something?

I think you have a quartet brother too, what f or something

Posted by paperplane2 > 2015-10-28 19:12 | Report Abuse

When did I disagree most of time? I agree with you on vs, and agree with OTB view also

Posted by paperplane2 > 2015-10-28 19:13 | Report Abuse

Pls talk with fact

Posted by kcchongnz > 2015-10-28 19:33 | Report Abuse

Posted by paperplane2 > Oct 28, 2015 07:12 PM | Report Abuse
When did I disagree most of time? I agree with you on vs, and agree with OTB view also

Posted by paperplane2 > Oct 28, 2015 07:13 PM | Report Abuse
Pls talk with fact

Are you talking to me?

Was I talking to you?

Are you having the nick names of I_like_dividend, donfollowblindly, truthseeker1 and what f which I referred to?

Posted by paperplane2 > 2015-10-28 19:38 | Report Abuse

Walao, so many copy paste I also confuse. Sorry kc Chong nz.

Posted by CFTrader > 2015-10-29 14:26 | Report Abuse

In mathematical way of concluding the type of return, I categorize the return into 4 order.

1st order : Capital Gain. You gain only once. Most of the people include me, trying to invest for capital gain. Of course, capital gain appreciation is very very attractive, it ranges from 10% to 300% and some even 1000% in short period of time.

2nd order :Stagnant Dividend. Stagnant means unchanged. For example, prior years, MAXIS announced 40c dividend annually.

3rd order : Dividend with AP. Arimethic increament of dividend. This year is 5c, next year 6c, next next year 7c ...

4th order : Dividend with GP. They grows tandemly with a GP way (annual 5% as example)

Posted by CFTrader > 2015-10-29 14:30 | Report Abuse

Let me quote some example base on Kcchongnz article.

“The share price will go up because of the growth in dividend. The dividend of Apollo was 7.4 sen in 2008 when it was trading at about RM2.50. The dividend yield was 3.0%. Its dividends has increased to 25 sen now and at RM4.98, an even more attractive DY of 5% when the share price has risen by 100% in 7 years, or a compounded annual growth rate of 10%.”

The dividend of Apollo had increase from 7.4c to 25c, and the price grows from Rm 2.50 to Rm 4.98.

The true value lies when you bought the stock at Rm 2.50, and enjoying 25c dividend. That's a 10% annual return, and not to mention that you have capital appreciation in your hand.

Note that the capital gain is NOT include as profit, AS long you doesn't sell it in the market.

What if the dividend grows from 25c, to 35c ?

Posted by CFTrader > 2015-10-29 14:30 | Report Abuse

One of the rule in share investing.
Paper profit is NOT considered as profit.
Paper loss ALWAYS considered as loss.