You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

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How to Make Big Profit from Dividend Stocks

Dividend stock is the term for a stock which the company pays dividends in large amount, say more than half of its net profit in a given year, while on the other hand, the price of the stock is not too high so that its dividend yield are greater than other stocks in general. Example? Bank BJB (BJBR). Since the year 2007 to 2013, BJBR always pay dividends by an average of 65% of its net income each year. For the book of 2013, the dividend was Rp78 per share. With the price of Rp965 per share before the cum date, then the dividend yield of BJBR was 965 / 78 = 0.081, or 8.1%. This figure is quite large when compared with yield of blue chip stocks, which only 2 – 4% in average.

Outlook of Pharmaceutical Stocks related to Healthcare

In addition to the sector of construction which we’ve discussed last week, in the last fe days I often receive questions (by email) about the prospect of Kalbe Farma (KLBF), Tempo Scan Pacific (TSPC), etc., aka pharmaceutical stocks, related to the government program that called Social Security of Health (Badan Penyelenggara Jaminan Sosial Kesehatan, or BPJS Kesehatan, it’s more and less similar to Obama’s Healthcare), which has been running since the beginning of 2014. Then, after Jokowi sworn in as President on 20 October yesterday, shortly afterwards he launched his program of 'magic cards', one of which called Indonesia Healthy Card (Kartu Indonesia Sehat, or KIS), which may make you curious, how about its impact on the stocks of pharmaceutical in Indonesia Stock Exchange (IDX). Well, before that, let us first discuss the theme of 'health' from the beginning.