Here’s an extract from the radio:  ,
Andrea Heng:
But when I invest in a payout stock, I may expect some returns. So when is quick for income owners, and how are they paid out?
Abel Lim:
Okay it varies, suddenly from company to company, business to business as well. So dividends may come in the form of monthly, half- every, or even annually. Therefore, it really depends on the board of directors and their standard operations within the given business. But, in general, we see businesses basically pay out on an annual basis, and this money is usually done in several ways. It can be in the form of money, so it’s a strong credit into your profile. Likewise, you can be paid via more stock. And if you’re paid more stock, you can possibly sell those stocks for income or for the long term investment, spend it. So the best way, if you have a long term sky, spend the funds. You really summon the seventh wonder of the world when you reinvest the money.
Andrea Heng:
The seventh wonder of the world? Show me more.  ,
Abel Lim:
The seventh wonder of the world is the power of compounding. But when you reinvest your income, you reinvest the shares in the company, creating two streams of income: the dividend payment and natural earnings. But because of the truth that you are reinvesting it, you’re earning attention upon that curiosity, or dividend upon income.
Andrea Heng:
Therefore, having it stack on top of each other to maximize your profits is really a wise idea… But can a business decide to reduce dividends or, in some cases, even no pay out at all?
Abel Lim:
Well, a company can do that. It’s within their control. However, it’s typically a pretty bad sign that a business is n’t doing particularly well when it chooses to reduce or cut its dividends. There are some difficulties that they are acquiring sufficient resources to overcome, and they are typically not ( an ) ideal situation for a company to be in. When a company reduces or stops its dividends, the news that enters the sector or the markets is typically rather bad. That’s also one of the causes of the controlled nature of many of these earnings in the beginning to prevent sending the wrong message.  ,