Capital Gain Vs Dividends
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Comment below whether you aim for capital gain, dividend or both.
1. Normally 90% of retailers aim for capital gain. Why we say so? Example imagine are you satisfy with the dividend yield of 5%? Where the share price doesn't move at all? Some might face huge drop. The dividend you got it from the stocks might not cover the loss u have to bear in your stocks.
2. For safety investors and some aged people they will go for some good dividend yield stocks. In fact this type of skills applied for people who is having huge capital and this is one of their way to diversify their investment.
3. You should go for index linked that have high dividend yield. Example when they face big drop and their dividend yield increase until 5% or 6% that time you should go for that. Slowly accumulate and build up your wealth from there. Don't go for company that have high dividend yield but their growing and company performance getting worse and worse. Some companies require to pay out dividend to maintain certain status. Always study in deep before you touch a stock.
4. For people who are having small capital, dividend is not the way you grow your capital. In fact you should aim for potential stocks that have growth in term of their business and share price. In fact, some of the good company with strong growing didn't give any dividend. Guess why? They rather reinvest all their money back to their business and fight for another round.
5. Combination of both capital gain and dividend yield is good. However, prioritise capital gain and dividends are just bonus for you guys. Equip yourself with knowledge and learn hard by experience. Our target is to build our wealth with correct way in shortest time. No one dare to deny that stock market is the best and fastest way to grow your wealth. Top 10 billionaires in the world grow their wealth by stock market too.
6. Dividends should take into consideration when you are selecting certain stocks but it will be a reference only. What is still matter is their growth of the company. Whether they put effort in expanding their business? Best example of those companies with low dividend yield but strong growing in term of business and share price is HARTA, PMetal & PENTA
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