A dividend is a premium which a company gives to its shareholders. Generally, a dividend stock pays quarter dividends (4 times in a year) in order for investors participate in the company's success. In company's earning the amount of dividend is called payout ratio. This figure measures the part of the earned money which is paid to the shareholders. A fifty percent value which is half of it earns is a good figure. Sometimes the companies could pay 90 percent of its net income due to its business model. These types of businesses do not need much money for increasing. In Singapore there are many investment companies. The investment plans are designed according to investment requirement of the clients.
Buy dividend stocks without Pay Commission
Investors gradually want to buy dividends directly from the companies through dividend reinvestment plans, which are known as DRIPs. The good thing of DRIPs is that you skip the discount brokerage firms. Instead, you buy the shares directly from the company or the transfer agent. This is a great way to avoid the commissions, which you pay discount broker.
Here I would like to share a 2013 portfolio of stocks provided by sg.dividendinvestor.com
If you consider dividend stocks to your investment mix, keep the following points in mind.
- Dividend stocks may help to assort an income-generating portfolio. Income-oriented investors want to diversify potential sources of income within their portfolios. The stocks with above average dividend yields compare with bonds that act as a buffer and do not turn out negative in the bond market.
- The investor gets dividends benefit from continuing favorable tax treatment.
Top 5 stocks of 2013
Here I would like to introduce characteristics of top 5 stocks which are helpful to investors for buying.
1. Neratel: - This is a primer solution provider who's providing solutions with the help of technological experts, offer excellent customer service and localization of resources in each market. This is a communication age. Computer, telephones, cellular phones, internet, satellites and ATM system are shrinking the world. Therefore the knowledge of IT and telecom is necessary. Neratel is a good company which deals with. Its dividend yield is 6.40%. This is also paying good dividends.
2. Sheng Siong: - This is a recently listed home grown supermarket operator of Singapore. Mr. Lim Hock Chee, Chief Executive Officer of Sheng Siong, commented on the growth: "Our expansion in FY2012 was made possible by leveraging on our expanded and improved supply chain capacity and capabilities at the new Mandai Link distribution centre." The dividend yield is 4.36%.
Financial highlights of Sheng Siong:
4. CH Offshore Ltd: - CHO is a great offshore service provider that provides a wide range of services to the offshore oil and gas industry. This is issued a special dividend of 2cent. The dividend yield is 10.31%.
5. Tai Sin: - Tai Sin is an electric cables manufacturer Pte Ltd company whose provides cables and wires in the region. Its ISO 9001 certification and conformance with various world-class quality test bodies are solid testimonies to untiring efforts to achieve excellent quality in both our manufacturing process and our end products. The dividend yield is 9.84%
Stocks that Pay Dividends alert
Investors are always interested to search stocks who give information of fundamental dividend stock data. I hope that at least one of these stocks information oscillates you and moves you into a position to increase your overall returns. So take a step toward the success as an investor.
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