Aguytrying wrote:All that risk for 20%? Why not choose a 10% dividend counter an chill out. This is not an advisable trading environment and you all know it. Those who stick out their necks, will get their heads chopped off.
@AGT, the fact is there are not that many 10% dividend yield companies even with the current bear market prices. KK & MSC are amongst the few that come to mind in terms of their historical DYs. All the same, I get your point.
I like to use a combination of several metrics such as PE, DY (especially where the dividend has been consistent over a long period), Price to Book, growth in Profits, future prospects etc.I am no good at TA but I like to think I catch more waves than I miss out. The particular weight I may place on a specific metric will depend on the market condition. For example right now I am leaning towards dividend yield/PE/Growth in Profitability hence my interest in KCB, KK, HF and MSC although MSC is fairly pedestrian on growth in profits - but its has been beaten down enough to be attractive. Of course, it could be a falling knife but if so, I will just grin and bear it!
On the other hand there are also opportunistic buys that also have very credible growth stories going forward, notwithstanding their paltry or zero dividend policies. Centum in my view presents a very enticing accumulation price and I have been taking heed. Too bad my funds are now running real low.