On Auto Dividend payments issue.
Investors can get their dividends directly deposited into their Bank accounts.
As of April 12 some 154 listed companies are participating in this auto-dividend deposit program. This according to the Bangkok Business Post, on April 12 "04.
This auto deposit called the "SMART program". Applications for this can be downloaded at www.tsd.co.th Each dividend deposited is charged 10 Baht which they say is lower then cashing the check in person. You will get a letter from the "Thailand Securities Depository Co".(TSD) confirming each time a dividend deposit and the amount, has been so made directly to your account. Also its faster, as the other method requires a 5-7 day check clearing time vs. this deposit is credited instantly.
According to the TSD, 993,083 individual investors where eligible for dividend payments in the year 2003. This is an increase of 116% from the year before.
Clearly, unlike too many brokers still think and claim more and more investors are investing for dividends, not just trading gains. The average annual dividend rate on the SET is currently around 2.8%, but as we have pointed out for years many smaller and mid sized firms pay double or more this average. Besides much higher dividend rates, these secondary choices have lower valuations and often fluctuate less in market value, as compared to their big "brothers and sisters".
Always diversify your stock portfolio!
Best Regards,
Paul A. Renaud.
