atans1

Hyflux is warning of investing in high dividend yield stocks

In Financial competency on 22/02/2019 at 1:24 pm

Its share dividend yield over the yrs

2017 1.19%
2016 5.71%
2015 10.95%
2014 10.95%
2013 15.24%
2012 13.33%
2011 19.86%
2010 28.57%
2009 16.33%
2008 9.00%
2007 6.43%
2006 6.43%
2005 6.05%
2004 3.33%
2003 2.38%
2002 4.76%
2001 2.38% S

Trouble is that a high yield and low dividend cover (the ratio of a company’s net profits to the total sum allotted in dividends to ordinary shareholders) doesn’t leave a company much room to invest or as a buffer against market shocks.

Hyflux reflects the old broker’s truism that high yields and good news do not go together.

For investors in Reits pls remember that Reits have no cover for distributions, unlike normal cos.

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  1. […] Hyflux is warning of investing in high dividend yield stocks ( Thoughts of a Cynical Investor ) […]

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