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EP 004: Why investing for dividend is not for most people

by | Jan 29, 2020 | Podcast Episode

Show Notes

In this podcast, we talk about why investing for dividend is not for the majority and why it can be a terribly bad idea. Many people think dividend as some kind of free money, but that’s not the case.

The goal of this episode is to let you understand better about dividend.

We discuss the implication of dividend payment.

From the chart above, we can see that the price adjustments for smaller dividend payout are not apparent. Each bell icon represents a dividend issue.

From the chart above, which is AIRASIA, we can see that price adjustment for larger dividend is more apparent.

We also use this stock as one of the examples where we also mentioned about the concept of “free shares”. Refer to the price trend for AIRASIA since its IPO.

What you’ll discover in this episode:

  • Why investing for dividend is not for the majority
  • Why investing for dividend can be a terribly bad idea
  • The implication of dividend payout
  • Why would companies pay dividend and also why they wouldn’t
  • Investing for dividend is for whom

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