Time and time again, I am reminded of how furiously the price of a stock can drop.
In yesterday alone, the price of Starhub shares dropped by 6.67% ($0.20), which is more than the total dividend issued in 2016. The share price continued dropping today (although at a slower pace).
I reckon, for some dividend investors, Starhub is a key dividend stock and occupies a big portion of their portfolio.
Speaking of dividend stocks, another stock comes to mind: Sabana REIT (Sabana Shari’ah Compliant Industrial Real Estate Investment Trust). Its stock price has dropped since April 2013. Although in recent days there has been a slight uptick.
Yes, on one hand, I wanted to buy dividend stocks, but on the other hand, I have to think hard as to how resilient the business is, and how strong the company is fundamentally (to ensure consistent dividends or even increasing dividends).
In fact, I have been reading back my old posts and trying to check if the current share prices of some of the companies which I have covered are within the ‘buying’ range. These are not all high dividend stocks, but hopefully are companies with strong fundamentals.
Unfortunately, seems like most of their stock price have been getting higher and higher (Health Management International Ltd, Spindex, Dutech, QAF… to name a few). While others have buy-out offers (eg. Innovalues – read here).
Incidentally, Auric Pacific might be privatized soon (read here)- by the way, I did not do any posts on Auric.
Been too lazy to do some detailed analysis today, but reading up my old posts help me recall many of my thoughts in the past (and compare them with the business performance of the companies so far). I tend to treat my blog as a digital notepad or diary to record down my thoughts on stocks.
Health Management International seems to be doing well in recent times and appears to be expanding.
- HMI to consolidate ownership of two hospitals in Malaysia for RM557m (read here)
Another point to note – there are some stocks which are fundamentally strong (eg. Straco and Spindex), however, I have my reservations. Straco’s share price has been trending downwards. However, I view Straco and Spindex’s business as being more cyclical and less resilient during an economic downturn, hence the ‘reservations’ in purchasing their stocks.
Well, although I can’t 100% forecast the future prospects of the company (and how it would affect the stock prices) —- but I guess I really have to convince myself and do my due diligence before committing to the stock purchase.