Sunway distributes 28¢ dividend, profit or loss?
On 6th May, income growth Malaysia stock Sunway announced a dividend distribution and attracted many investors who are eager to buy.
Some investors like to invest in an income growth company which distribute dividends,
and buy regardless of the unreasonable price.
Is this investment method correct ?
Is an income growth share dividend stock really a good buy?
Refer to the following chart: Malaysia Stock Sunway Berhad 5211
The figure shows Sunway on May 6, 2015 will distribution of 28¢ dividend per share. On the same day and the following day, the stock price dropped down to RM3.57
and sequentially fell again to about RM3.35.
On April 29, 2015 our INSIDERS sell signal has already alerted you sell at the very high prices, to avoid losing the profits.
“Buying at the peak to earn dividends is the biggest mistake.” – FatnRich.com
The dividend is only 28¢ per share, but the stock price drop difference is about 50¢.
So, is it worth ?
Just think for a moment, by getting the dividends at the expense of stock price drop;
do you make a profit or loss?
The right way to invest is:
Buy low and sell high – the essence of a profitable investment. If you buy low to earn dividends, then it is worth.
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