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The Weekly Nibble: Income Shares, Anyone?

Here are some of the more interesting articles that have appeared in the Motley Fool Singapore’s website over the past week. Let’s take a look at them.

1. How to Find Great Management Teams In Asian Stocks

Yeo Seng Chong, founder of Yeoman Capital Management, an Asia-focused investment company, revealed five aspects he looks at when assessing a company’s management team.

One aspect is the company’s dividend history: He prefers a track record of stable or growing dividends. A firm that cuts its dividend and yet jacks up its managers’ pay would not interest him.

Another aspect he looks at is whether a company has a history of issuing shares rampantly. Which shareholder in the right mind would like to be diluted unnecessarily?

2. How To Buy 100 Winning Shares

With such an eye-catching title, what’s not to like? In this piece, my colleague David Kuo looks at how we can embrace volatility in the stock market and stay the course.

Here’s a small snippet from the article:

“And we humans can be as predictable as night follows day. Many will sell when they are afraid. They will also buy when they see that share prices are rising. But succumbing to the whims of the market is the wrong way to invest.

Our reasons for buying a stock should be based on the yield that a stock can deliver over its lifetime.

Consequently, we can capitalise on volatility in the market to help us achieve our goals. We can buy more of what like, when the market is gripped by fear. We must never allow volatility to be an obstacle that hinders us from our ultimate objectives.”

3. Income investing and growth investing

Income investing, as the name suggests, is an investing approach that focuses more on deriving income rather than earning capital gains. Income shares usually have a high dividend yield of over 3%.

Comparatively, growth investing involves investing in companies that pay little dividends but have the potential for growth through capital gains. For an in-depth look at the differences between income and growth investing, jump in here.

For those interested in becoming a successful income investor, you can check out here.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.