Monday, August 23, 2010

Which is better ? Fixed Deposit Interest vs Dividend Play in Stock Market

I believe majority of stock market investors would agree with me that one will earn more income by going the dividend play approach in Stock Market.  Possibly 6% or higher per annum in comparison to a mere 3% from FD interest.  Among the most popular high dividend yield stock are YTL Power, Public Bank and LPI.  Not only will the investor benefit from its high dividend yield, but also the stock appreciation in value.  On average, one can be assured of an average of 10% annual return, unless there is a global crisis or recession taking place during the year.  No doubt FD is almost risk-free, but some wisdom and patience, I feel taking a little more risk for an almost triple the returns is justifiable. 

As for myself, I love taking risks, which sometimes is not a good thing.  I hate to invest in something which does not seem to move for a long period of time.  I find them to be too boring for my taste.  A moderate risk is my type where I can feel the price movement in 3-6 months time frame for a 10% to 20% gain.  Let's hope my risk appetite pays off.

1 comment:

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