Dividend Investing

Dividend Investing

Dividend investing in Asia was found to offer the highest returns at stock investing according to a report by an investment firm. Over a period of 20 years, dividend investing outperformed other kinds of stocks. Read more about dividend investing in the article attached below for details.

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The Business Times
Published October 4, 2010
By JAMIE LEE

High-yield stocks beat growth plays in Asia, says Citi report

Dividend investing has trumped growth investing over 20 years

STOCKS with high dividend yields in Asia offer the highest returns and beat investing in stocks that promise earnings growth, Citi Investment Research said in a report last week.

Citi noted that dividend investing in Asia excluding Japan has trumped growth investing over 20 years, which provides a return of about 8 per cent per annum in US dollar terms.

'In a growth part of the world, it is not growth that outperforms but the purest form of free cash flow - dividends,' said analyst Markus Rosgen. 'Yet, most investors still focus more on growth and capital appreciation than income.'

Citi's analysis showed that the largest earnings per share (EPS) growth came from stocks of companies with an average earnings growth.

And in comparison to returns from those with average earnings growth, those from dividend yield still beat this by 310 basis points per annum.

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Editor
Investments Singapore