All too often, investors and speculators pay too much attention to profit forecast.
It is amazing that so many of the Malaysian companies have the courage to make profit forecast for many years into the future. What is even more amazing is that so many of the investors seem to believe these forecasts absolutely.
It is difficult to make a profit forecast a year ahead, let alone five years or even ten years. Such profit forecasts can only be regarded as extremely shaky.
Dividend is real and it is something which the shareholders can put to some use.
Most companies keep dividend at a level which they can afford to pay out irrespective of whether it is a good or a bad year and is hence a great deal more certain than profit forecast.
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