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Post by mangomoney on Feb 22, 2016 19:55:15 GMT 7
Patience yields results Dividend-paying stocks provide a stable income stream through good times and bad.
Investors are chasing high-yield investments to generate income in a world where interest rates are at near zero or even in negative territory. Although the US Federal Reserve made its first rate rise in nearly a decade in December, the next lift-off is fairly certain to come later than the Fed's policy rate call in March. In the current environment, dividend-paying stocks are still an attractive way... www.bangkokpost.com/media/content/20160222/1571696.jpgPlease credit and share this article with others using this link: www.bangkokpost.com/business/finance/872048/patience-yields-results. View our policies at goo.gl/9HgTd and goo.gl/ou6Ip. © Post Publishing PCL. All rights reserved.
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AyG
Crazy Mango Extraordinaire
Posts: 5,871
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Post by AyG on Feb 22, 2016 20:42:48 GMT 7
I find the sheer stupidity of that article staggering.
Yes, you can buy shares before the ex date and sell them after, and so receive the dividend. However, the share price will drop by the amount of the dividend, so you'll probably be selling at a loss. You'll probably make little or nothing after transaction costs.
And as for these high yields, why are they so high? Either the yields reflect the very high risk of these stocks, or they are unsustainable and will be cut.
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