Buy Growth Stocks, Not Dividend Stocks

When we buy shares for long term investment, we will look for stocks with high dividend payout. However, the price trend of certain dividend stocks is on a continuous downtrend. If we invest in such companies, our capital loss will be more than the dividend payout received.     

To secure our investment capital, we should invest in stocks with high Total Shareholder Return (TSR). TSR takes into account the share price appreciation and dividend payout of the company. With this, we are able to tell the total return to a shareholder (expressed in annualised percentage).     

With ShareInvestor WebPro, you can now find the stocks with the Best Shareholder Return for the past 3 or 5 years. The following 2 steps will get you the list of high TSR stocks.

  1. Go to Prices => Stocks Price
  2. At the Fundamental filter, select “Best Shareholders Returns”. You can either select “3 Years” or “5 Years” option.

In the results list, we can identify some companies with substantial capital gains.

Best World International Limited

The share price of Best World increases from a low of $0.315 (on 29th Mar 2016) to a high of $1.67 (on 8th Sep 2016). This is a 430% capital gain in less than half a year!

 

Dividend Payout:

Innovalues Limited

The share price of Innovalues increases from a low of $0.43 (on 15th Jan 2015) to a high of $1.115 (on 7th Jul 2016). This is a 159% capital gain in less than 1.5 year!

Dividend Payout:

ShareInvestor Member – View the Total Shareholder Return

Non-member – Redeem a FREE Trial for ShareInvestor WebPro

View the Best Shareholder Return Companies

 

Disclaimer:

The mentioned stock should not be taken as an advice to buy or sell. Each user should go through with his usual self-analysis of his risk appetite and perform additional due diligence before making any investment or trading decision. Your Trading Representative should be consulted before making any financial decision.