Mr has left a new comment on your post "Dutch Lady posts 4Q net profit of RM16.05m, warns ...":
Dear Mr bullbear,
Sorry to write to you here, but I don't know how to reach you.
....I want to ask you if you can recommend say 5 stocks with High Dividend Yield that you can recommend to invest for long time.
I am a 43 year old family man with a full time job and no interest nor time to monitor the market. Maybe once or twice a month.
My goal is to just beat the fixed term deposit rate. Now is so low, only 2% to 2.5%. Very hard to earn passive income like this.
I need some real solid recommendation, stocks that I can hold for a long time. A friend swears by PBBANK. But I am concerned the price may be too high now.
I plan to start with RM50k first. Maybe split into 5 stocks with RM10k each.
What do you think of PBBANK? What is a good entry price? Can you recommend a few others that pay high dividend for me to consider? I appreciate the final decision is mine and mine alone, and I will not blame you for any losses. But please explain your reasons.
Thanks and kindest regards,
Mr Teoh
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Dear Mr. Teoh,
It is not easy to give you advice other than some very general ones. You will find enough materials in this blog to answer your questions.
Since you asked, I thought a better approach would be for me to collate some examples to help you answer your own questions.
Click here: It sure beats FD rates and it is safe too.
http://spreadsheets.google.com/pub?key=tWENexpUrXS_RMxB7k73RgQ&output=html
Warren Buffett often looks at the stock he buys as equivalent to a bond. The cost price for the stock is the 'equivalent' to the price paid for a bond. The earning yield of the stock is the 'equivalent' to the coupon rate of a bond.
He likened his stock as equity bond. Unlike a bond that pays a fixed coupon rate for its lifespan and repayment of the initial invested capital, an equity bond (stock) if chosen well, can deliver increasing earnings (and dividends) over many years. Its share price likewise will appreciate with its increasing earnings.
The trick in dividend yield investing is still to focus on the earnings and earnings growth potential of the company. All these are embodied in a simple phrase, that is, choose and only invest in good high quality companies bought at bargain or fair prices.
Regards.
Click:
Dividend-paying companies: major shareholders must be willing to share their profits with their investors through good dividend payments.
http://dividendsvalue.com/
Div-Net Associate Member
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