i am looking for companies with high yield, but the condition is that they must be well-managed, and sustainable margins with low P/B & PE. I lost $ since last year till now in commodities stocks & i am comtemplating to cut my loss & switch to UMS. Even in an downturn, UMS will still pay a dividend, and assuming it goes back down to 6 cents again, at the most i lose about 32cents on paper assuming the current share price of 38cents and it will take abt 6 years of receiving the current dividend payouts for me to take back my initial investment capital now. Worth to do that? Inflation is almost 5% annually now. If i put my tiny $ in the bank it is also useless. In 6 yrs time watever $ left in my bank will be eroded by 30%. If i hold on to the current commodities stock i dont know how long i have to wait before it goes back up and wonders how long the euro crisis will drag. And in an downturn, all stocks go down. Shouldnt i be choosing companies that are cheap & at least willing to pay good dividends if they are doing well? Ofcos if they dont do well, i cant be expecting them to still pay out the same dividends. Any advice on which other good companies that offers good yield?
