1) Steady passive income. 2) Total return = price appreciation + dividends. Stable dividend stocks often outperform in bear markets. 3) Reinvesting dividends compounds wealth long-term.
1) Yield > 4% (higher than bank deposits). 2) Payout ratio < 70% (sustainable). 3) 5+ years consecutive dividends. 4) Growing free cash flow. 5) ROE > 12%.
PNJ: 5-6% yield, gold + jewelry brand. FPT: 4-5% yield, tech leader. VNM: 6-8% yield, defensive consumer staples. MWG: 4-5% yield, retail king. VCB: 3-4% but 15%/year growth.
Yield > 12% usually a warning — price drops faster than dividend. Example: penny stock drops 50% → yield "rises" to 20% but company near bankruptcy.
Cash dividends Vietnam: 5% tax. Stock dividends: no tax at receipt (only on sale). Consider stock dividends for long-term tax efficiency.