So, you have received your paycheck, paid your bills, given your parents some money and have some leftover. What do you do?
You could spend the rest on socialising, clubbing, gambling or womanising. But I say, why not invest it?
Investing in high yield dividend stocks is the best way to get rich. Let me give you a scenario. Assuming you are earning $3,000 a month. If you put in $200,000 in dividend stocks at a 6% yield, you will receive $12,000 a year. That is $1,000 a month! Combine this with your monthly paycheck and you have $4,000 a month to spend.
As an investor, I can tell you nothing makes you happier than seeing dividends regularly stream into your bank account.
I will cut the chase and share with you the stocks that can help you achieve this regular dividend income.
First, do a broad scan of businesses that make money in Singapore. Can't think of any? Let me help you. I will give you an account of my life. Every morning, shortly after waking up, one of the first things I would do is to reach for a newspaper. Thereafter, I take a bus and stop by the neighbourhood mall to buy breakfast. On the train, I use Whatsapp, make phone calls and surf the net on my phone. After work, I go to the mall to shop and have dinner.
What is it that I am getting at? You see, what I have just described is the regular life of most Singaporeans. Consciously or not, you are actually spending money in your daily routine and enriching the coffers of certain businesses. So why not get some money back?
When you read a newspaper, it is likely published by Singapore Press Holdings (SPH). When you make a call, you are definitely using one of the three telcos in Singapore (Singtel, Starhub and M1). When you shop at a mall, there is a good chance that it is either owned by Capitamall Trust or FraserCentrepoint Trust.
These are public listed businesses or reits that pay very good dividends.
And any regular joe can buy these counters that trade every weekday on the Singapore stock exchange.
Using this broad sweep, you now have an idea of what sort of businesses that are unlikely to go bust. And this is crucial in determining how to choose a regular dividend paying stock.
For those who are starting out in investing, I suggest to focus on companies that "cannot fail". To begin, start with buying all the 3 telco operators - Singtel, Starhub and M1. Personally, I enter positions when I see that the dividend yield is at least 4.5% (dividend paid out in a year divided by the current trading price of the stock. For e.g Starhub pays $200 in dividends a year and is currently trading at $4.22. This translates into a yield of about 4.7%)
Why 4.5%? I think this yield can comfortably guard against inflation. Of course, your projection can be higher and you can wait for a price to enter around 6%. But I feel, 4.5% is suffice.
If you have a bit more savings, start pouring your cash into Frasercentrepoint Trust or Capitamall Trust. Both of these trusts own big malls like Tampines mall, Westgate, Northpoint and Causewaypoint. They pay really good dividends. One thing I really like about this business is that you can take a bus and swing by the mall to take a look at the human traffic. Have you ever seen a mall that is not crowded in Singapore? If not, why are you not benefiting from it?
I will elaborate more in my next post. For now, happy investing! HUAT ARH!
You could spend the rest on socialising, clubbing, gambling or womanising. But I say, why not invest it?
Investing in high yield dividend stocks is the best way to get rich. Let me give you a scenario. Assuming you are earning $3,000 a month. If you put in $200,000 in dividend stocks at a 6% yield, you will receive $12,000 a year. That is $1,000 a month! Combine this with your monthly paycheck and you have $4,000 a month to spend.
As an investor, I can tell you nothing makes you happier than seeing dividends regularly stream into your bank account.
I will cut the chase and share with you the stocks that can help you achieve this regular dividend income.
First, do a broad scan of businesses that make money in Singapore. Can't think of any? Let me help you. I will give you an account of my life. Every morning, shortly after waking up, one of the first things I would do is to reach for a newspaper. Thereafter, I take a bus and stop by the neighbourhood mall to buy breakfast. On the train, I use Whatsapp, make phone calls and surf the net on my phone. After work, I go to the mall to shop and have dinner.
What is it that I am getting at? You see, what I have just described is the regular life of most Singaporeans. Consciously or not, you are actually spending money in your daily routine and enriching the coffers of certain businesses. So why not get some money back?
When you read a newspaper, it is likely published by Singapore Press Holdings (SPH). When you make a call, you are definitely using one of the three telcos in Singapore (Singtel, Starhub and M1). When you shop at a mall, there is a good chance that it is either owned by Capitamall Trust or FraserCentrepoint Trust.
These are public listed businesses or reits that pay very good dividends.
And any regular joe can buy these counters that trade every weekday on the Singapore stock exchange.
Using this broad sweep, you now have an idea of what sort of businesses that are unlikely to go bust. And this is crucial in determining how to choose a regular dividend paying stock.
For those who are starting out in investing, I suggest to focus on companies that "cannot fail". To begin, start with buying all the 3 telco operators - Singtel, Starhub and M1. Personally, I enter positions when I see that the dividend yield is at least 4.5% (dividend paid out in a year divided by the current trading price of the stock. For e.g Starhub pays $200 in dividends a year and is currently trading at $4.22. This translates into a yield of about 4.7%)
Why 4.5%? I think this yield can comfortably guard against inflation. Of course, your projection can be higher and you can wait for a price to enter around 6%. But I feel, 4.5% is suffice.
If you have a bit more savings, start pouring your cash into Frasercentrepoint Trust or Capitamall Trust. Both of these trusts own big malls like Tampines mall, Westgate, Northpoint and Causewaypoint. They pay really good dividends. One thing I really like about this business is that you can take a bus and swing by the mall to take a look at the human traffic. Have you ever seen a mall that is not crowded in Singapore? If not, why are you not benefiting from it?
I will elaborate more in my next post. For now, happy investing! HUAT ARH!
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