Accordia Golf Trust - Can Dividend Yield Be Maintain?
Update: Dividend is given out on a 15 months basis. So the total dividend should be 0.0803/15x12 = 0.06424.
I am currently sitting on a big paper loss on Accordia Golf Trust due to its continuous fall in price.
My average price is around 0.719 and the current price is 0.590.
I bought this stock mainly for the dividend yield and the price has fallen quite a bit since the IPO. Furthermore, I feel that its business is great. There will always be people playing golf and the business will not be gone in a while.
So I am very confused if I should continue to hold on to them?
After some thinking... this is my conclusion...
1. I bought the stock mainly for dividend yield - My dividend yield this year is 8.93% (0.06424/0.719). WOW!
2. Dividend Stocks do not become a "falling knife", esp in Singapore, if it can maintain a certain yield. Singaporeans love Dividend Stocks.
3. In the long run, if the dividend do not drop drastically, the price will stabilized eventually and the dividend will be able to cover my differences. In the longer run, this stock will become a "champion" in my portfolio if the business model does not change and the dividend yield can be maintain.
So, in short, I will not be selling them and neither will I be averaging down YET.
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