SGX Event and The Role Of Dividend Yield

Before we go into the actual discussion, I like to inform my readers that I am very privileged to be invited to be one of the speakers for the panel for "My First Stock Carnival Week - Different Investing Styles and Finding Your Ways" organised by SGX.

I will like to thank Shanison of IN and SG Thumbtack Investor for the recommendation.

Here is the link to register for the event and its FREE!

I hope to see you there and do "direct" all the question you have for me, I will try my best to answer!


So back to main topic of today - Dividend Yield.

Recently while I was engage in some analysis, I realised dividend yield played a lesser role in my analysis currently as compared to my previous analysis. 

Thus, it makes me wonder if dividend yield should be an important factor in our analysis?

For example, if a company makes increasing revenue and net profit, but did not increase the dividend, should retail investors be angry with the firm?

As much as many of us are obsessed with dividend, I believe we should not be upset if a company did not increase its dividend. After all, it is still increasing its revenue and net profit for you as a shareholder - the directors could have other things in mind. 

We should be patient and see what they use for the money instead. It could be for research and development work that could push the company towards another level!

Thus, unless you are an income investor (whom I suppose should be focus on REITs or Blue Chips), then I believe dividend yield could be a factor in an investor's analysis, but should not play a big factor in whether you intend to continue to invest in the company. 

What do you think?

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