With the inflation rate in Singapore hiting 5.4% and the property prices are sky high now , it is is better to put your spare cash in good dividend stocks like Cerebos Pacific (Brand Essence of Chicken) and Cambridge Trust rather than low interest rate saving deposits. Though Cerebos Pacific is a low volume trading counter but it has never disappointed investors with consistent attractive dividends, kudos to its top Japanese Executive.
Companies like Cerebos have reached maturity and cannot grow rapidly. That's why they give consistent dividends.
Cerebos shareholders received 2.5 cents dividend every year, without fail, from 2007 to this year. The yield is about 4.9% taking the current stock price of S$5.10.
Last year was an exception -- Cerebos upped it to 3.2 cents dividend.
I agree with Tiger, which is why I do have such steady yield stocks. However, being adventurous and still young, I am inclined to increase my investments in growth stocks. I like WORLD PRECISION MACHINERY (48 CENTS), for example.
I also like beaten down stocks that have a high chance of turning around, such as MIDAS (30 CENTS).
Yes, the title of this post is right. My suggestion is for retail invester to really go long term and choose the most fundamental stock that pays a lot of dividends and sit and sleep on it. Don't try to be short term trader like me, unless you are nimble and fast. you can do that buying when the market crash, hopefully sometime in Q4 or 2013. or maybe summer. I dont know, but a crash is coming for sure. Just ask, have any country in history with debt of this magnitude like Greece ever clear their debt in a peaceful manner??? contagion, follow by Spain, and Italy. Greece is not Argentina, it is not iceland or Russia. Greece is EUROPE. But it is always the bottom of the society who suffer the most in a recession. The poor will be even poorer. Already we have some poor who look for food amongst the garbage in some poor country. It look now more likely this will become a fact soon. This euro crises is unavoidable. We are safe, we still got food to eat, but the poor will be the real victim of the crises. May they be well.
I am sorry i have to add this. You can go long on the most fundamental blues chip. that is i am refering to, not other penny.
good luck, a crash is good for us, think positively, your price is not 6 months, your price is 6 years from now.
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[cheongwee 30-05-2012]:
Yes, the title of this post is right. My suggestion is for retail invester to really go long term and choose the most fundamental stock that pays a lot of dividends and sit and sleep on it. Don't try to be short term trader like me, unless you are nimble and fast. you can do that buying when the market crash, hopefully sometime in Q4 or 2013. or maybe summer. I dont know, but a crash is coming for sure. Just ask, have any country in history with debt of this magnitude like Greece ever clear their debt in a peaceful manner??? contagion, follow by Spain, and Italy. Greece is not Argentina, it is not iceland or Russia. Greece is EUROPE. But it is always the bottom of the society who suffer the most in a recession. The poor will be even poorer. Already we have some poor who look for food amongst the garbage in some poor country. It look now more likely this will become a fact soon. This euro crises is unavoidable. We are safe, we still got food to eat, but the poor will be the real victim of the crises. May they be well.