little book of big dividend review draft

121 days 

: 除净T 前後60天，持有61天税reduction, so it may be better to invest 1 months b4 T to capture

red flag if yield 3pct above the peer. may not sustain 

if 2 to 3 times to index, also need to beware

Big safe dividend rules

1 payout lt 60pct

2 quatrix gt 75, ie the strength of firm gt 75pct of the market 

..growth of income, cash flow and sales

..quality, roe, roa and past return

..value, book value, pe and price to sale

.. debt ratio

.. income forecast

.. relative price to index

it is possible to buy directly from the firm, eg 941, 857, in hk

inflation is fierce, even 3pct, it will halve ur money in 25 years

dividend reinvestment can buy at downturn as well as good times

35 to 45 stocks evenly for diversification 

110 minus age equal ratio of stock. so age at 40, better 70 

......

advanced BSD

1 payout , wt 30

2 interest coverage, wt 10

3 cash flow to income, wt 5

4 yield wt 5

5 six mth RSI, lower may indicate problem, wt 10

6 increase in book value wt 10

7 long term income growth forecast wt 10

8 three years of cashflow growth wt 5

9 three year of dividend growth wt 10

10 three year of income growth wt 5