obiero wrote:VituVingiSana wrote:winmak wrote:Apples to Oranges.... I know @VVS has a keen interest on these 2 and can give a nice input
I am in both for different reasons (fundamentals) but the same core reason [to make money].
The real question here is why would anyone invest in a KES 21 per share stock to obtain KES0.80 dividend after 12 months.. It's possible that a mutura salesman earns higher returns than such an investor. I prefer capital appreciation.. But I also understand that investment choices are personal decisions
That is a yield of 3.8%. Not bad as you wait for it to grow over time. By freezing the yield, you separate yourself from everyone out there meaning that should dividend grow to 1.05 Bob in 2 years, you will be yielding 5% on cost. This is because even if market price is 25 by that time, your original cost remains the same.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.