Investing in dividend-paying companies

Through the investment blog Investment Moats, I came to know of Singapore's version of Motley Fool ("Motley Fool SG"). Years ago I do follow the original Motley Fool in US but I'm happier following the Singapore version since I buy shares that are listed in Singapore.

Recently, I read an article on Motley Fool entitled "How to Find Great Dividends While Relaxing By the Coast", which then talked about a recent post by Eddy Elfenbein (an investment writer and analysis) where he published a short tweet on how to screen for dividend paying shares:

1. Screen for 3%+ divs.
2. Delete names with too much debt
3. Sit by pool.

Motley Fool SG then adjusted criterion no. 1 to suit the Singapore context and performed a quick screening. The important takeaway is at the bottom of the article:

" But crucially for most Foolish investors, this is not the end of the work to be done.

For the astute investor, the screened names simply represents the starting point for more study to be done. Avid Foolish investors may instead want to dig further, and look at the business behind the ticker.  My colleague Ser Jing also would encourage dividend investors to look at the track record of dividends, payout ratios and free cash flow.

Mr. Elfenbein’s overarching point should not be lost, though. And, that is, whatever element you choose to screen for, the companies should reflect high-quality and a cheap price. "

This is good advice.
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