How to know if a stock is dividend stock?
What homeworks should I do?
There are different kinds of stocks that give dividends.
1) REITs and Business Trusts
2) Growth Companies, with volatile prices, i.e. OSIM, Noble,
etc
3) Companies in mature (some say sunset) industries, i.e. SPH,
SingPost, GRP, etc
4) Companies operating with high barriers to entry, i.e. Starhub,
Singtel, M1, SPH, SMRT, SBSTransit, etc
5) Others of course, but I too lousy to know
In determining if it is ok to put your monies in, need to
consider the sustainability of the dividends amount. To do so, need
to check out
1) Free Cash Flow
2) Profit Margins
3) Industry competitors
4) Ability to refinance debts anytime
5) Plans for revenue growth
6) Percentage of profits paid out as dividends
7) For REITs and Trusts, I would consider P/B ratio, and only very
comfortable if P/B is < 1. Ratio of 0.8 and below would be
good.
8) etc, again, I too lousy to consider so many things
