Wednesday, August 27, 2014

How to Find Great Dividends While Relaxing By the Coast | The Motley Fool Singapore

How to Find Great Dividends While Relaxing By the Coast | The Motley Fool Singapore: "In a single tweet, he tried to convey two important characteristics on the kind of bargain-priced outstanding companies he looks for:

a) A 3% yield might indicate that a company is selling on the cheap

b) A company with negligible or little debt may indicate that the company is well run

Awesome, let’s test this screen out on the SGX"

As Mr. Elfenbein’s tweet highlighted, this could be the time to sit back and relax. Not everyone has a pool at their void deck, so folks may instead enjoy taking a stroll along the sea in East Coast Park.



But crucially for most Foolish investors, this is not the end of the work to be done.



For the astute investor, the screened names simply represents the starting point for more study to be done. Avid Foolish investors may instead want to dig further, and look at the business behind the ticker.  My colleague Ser Jing also would encourage dividend investors to look at the track record of dividends, payout ratios and free cash flow.



Mr. Elfenbein’s overarching point should not be lost, though. And, that is, whatever element you choose to screen for, the companies should reflect high-quality and a cheap price.

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