Q. “My question is really basic and so please bear with me… I have been wanting to invest in shares for the last three years and I would very much like to receive dividends as a passive income. Could you please explain what dividends are exactly and why a company would pay dividends to shareholders?”
A. I am always happy to answer these questions, because we all have to start somewhere w... ››› more
There are many different ways to make money from cryptos…
You can invest in them.
You can trade them.
You can even make money through arbitrage, which is when you buy and sell a crypto simultaneously to take advantage of the price difference.
But did you know you can actually make passive income from cryptos?
I'm talking about…
______... ››› more
There are 275 dividend paying shares in the JSE today. They average a dividend pay-out of 3.88%.
While a 3.88% dividend is surely better than nothing - this doesn't even cover the interest you'd have received on your cash with a fixed deposit.
And, once that money is paid out by a company the money is lost to it forever.
But what if I told you there's a better option - a company that d... ››› more
As you may know, many shares pay dividends. A dividend is a portion of a company's earnings that it pays to its shareholders. Usually this payment happens once or twice a year.
And because they offer this added benefit of a regular income stream, income-seekers love dividend-paying stocks.
But occasionally, companies surprise investors by electing to pay a ‘special dividend'.
Special... ››› more
If you have a scan of the JSE you'll find there are currently around 68 stocks with a dividend yield of 5% and higher…
You'll also see that a specific stock, Quantum Food Holdings, sits on a massive 16% dividend yield!
That's right, R1,600 in dividends for every R10,000 invested…
If you invest R10,000 into a fixed deposit today you'd be lucky to get 6% on your money - for R600 in i... ››› more
Before Donald Trump escalated trade wars, which sent shockwaves through the markets, stocks were performing well overall.
The major US indices like the Nasdaq and S&P500 were flying.
Even the JSE All Share was showing good returns. From its lowest level to its highest, the JSE was up around 14%. A great comeback from 2018's negative return.
However, while stocks were making all the ... ››› more
The only way to live a worry-free retirement these days is to have steady streams of income coming in, month after month.
Without income you can count on, you're dependent on your retirement annuity to get by. And that's not a spot you want to be in…
That's why, part of my job as Real Wealth editor, is to find investments that consistently pay investors dividends - as well as - investmen... ››› more
Imagine investing R100,000 in a company and receiving over R600,000 in dividends alone…
Or investing the same amount and getting back nearly R200,000 just in dividends…
Now that's serious income that could guarantee a comfortable retirement. Now imagine owning six of these shares right now…
I'd call that the ‘Ultimate Paycheque' retirement.
And as I said, I've identified si... ››› more
Right now, there's one JSE listed company who has a dividend yield of 57%.
That's unheard of in JSE listed companies. But it's true.
In fact, it could be one of, if not the highest dividend yield I've ever come across from a JSE listed company.
Just consider this…
The JSE All Share's dividend yield is just over 3%. This means, the company has a yield nearly 20x higher than the av... ››› more
It's no secret that if you are investing for your retirement, you want to have income producing stocks in your portfolio.
And by income producing, we mean shares that pay consistently high dividends.
But looking at the dividend yield alone, may show x but it could mean y….
Instead I want to show you a far more RELIABLE way to calculate the real dividend yield, so that you can invest... ››› more
Generating consistent income is a wonderful way to grow your wealth. And one of the best ways to make consistent income is with dividends.
However, finding the right companies that can consistently pay you dividends every year isn't all that easy.
Unfortunately, you'll get companies that pay-out most of their profits in dividends. Eventually, they won't be able to sustain this. This happen... ››› more
Q. “I want to start to trade Crypto-currencies. I heard that I don't need to worry about ECNs ever again. I don't even know what an ECN is, let alone worry about them. Could you explain this in layman's terms. I find that the definitions on the internet, are far too complicated to understand?”
A. I'll try to explain what an ECN is with an easy to understand analogy.
... ››› more
Imagine this… You could've bought Capitec shares at R26 a share in 2008.
In the past year, the company paid investors R15.75 in dividends. That means 60.50% growth on your original capital JUST FROM DIVIDENDS.
If you add up all the dividends since 2008, investors received R69.88 in dividends. That's 268% growth from dividends alone.
In fact, a study of dividends and returns on shares... ››› more
The most common argument you hear from investors who aren't interested in dividends is that the company should be able to find something better to do with its cash than give it back to shareholders.
They say the funds should be used to grow the business either by investing in the business itself or by acquiring new ones.
These are valid points but here's where they are wrong…
Recomm... ››› more
Last week, I explained the power of income investing.
And how it can boost the overall performance of your portfolio…even in the worst of times.
I also revealed (in short) some of the best ways to start generating an income for your portfolio.
Today I'd like to delve deeper into one of those income investments.
The reason why, is because they offer more income than a normal share... ››› more
From mid-2002 to mid-2017, the JSE All Share returned a cumulative 420%.
Doesn't sound too bad, right?
But if you had re-invested dividends, the return would be over 700%
Just think about that for a second…
That's an extra 300% growth thanks to simply reinvesting the dividends.
To put it another way, R10,000 back in mid-2002 would be worth over R50,000 invested in the JSE. Bu... ››› more
Q. “I'm looking for a downloadable charting platform to set up my charts when I trade… Which user-friendly charting platforms do you recommend and why?”
A. The best way to sign up to a trading charting platform, is by going directly to the platforms' websites.
You'll find that these charting platforms work on a yearly subscription basis, which you'll need to renew and even upgrade ea... ››› more
Dividends can make you massive returns.
If for instance you bought Adapt IT in 2009, you'd have paid 44c per share. Since then the company has paid out 81.84cps in dividends - a return of 186% from dividends alone.
Based on the latest dividend of 17.1cps, you'd make 38.8% on your original investment THIS YEAR ALONE.
... ››› more
Following on the theme of buying shares at a discount, today's company is trading at a discount to its net asset value as well as paying over 6.5% in dividends.
You will get paid to patiently wait for the company's share price to return to a premium to its net asset value (NAV).
The biggest reason for the discount is that it failed to comply with credit regulations in the past. These issues... ››› more
The rand lost 4% of its value in mere days last week.
At the same time, between 13 and 15 August the JSE lost 4% of its value.
As uncertainty at home and abroad causes this kind of volatility, there's a simple kind of investment that warrants a place in portfolios.
I'm talking about dividend paying stocks. The appeal is simple, dividend payers can provide investors with tangible returns (... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.