A dividend yield of 12 per cent seems to be the floor below which most stocks will not drop. In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more.
There is no permanent dividend payout of say 10% or 12%, you have to look at the corporate earnings. Astro reduces its dividend payout when profit drop. So I don't agree that dividend provides a 'floor' for shares during bear market especially if the bear market caused by a recession.
might crash, might this might that.....there is no value is talking might this might that....
all forecasts should be accompanied by time, start and end dates be as specified as possible.....and be falsifiable, that is the way to improve skills in forecasting........
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
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Posted by calvintaneng > 2018-10-11 22:20 | Report Abuse
A dividend yield of 12 per cent seems to be the floor below which most stocks will not drop. In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more.
..............................Dr Neoh Soon Kean