Friday, 5 February 2016

Portfolio simulation. 50k is enough to pay 9months of dividends a year. Bao Chi

A friend of mine said that my investment method is only reserved for pple with more funds.

Not true!

i decide to do a portfolio simulation with less than 10 counters, probably good for people with little time for monitoring yet want to reap the benefits of investing in the stock market.
(I am vested in these counters)

$50,000 is enough to buy into these counters to earn meaningful dividends for reinvestment, since now the lot size is 100 instead of 1000. 8 counters means an allocation of about $6,000 per counter.

1) Singtel
2) Singpost
3) Reit ( plife, suntec, capitacom)
4) SPH
5) ST ENG
6) OCBC

Notice these are big blue chip counters, probably the bluest of the blue chips in singapore. And notice that most of these counters have gone international, thus reducing the risk of single country.

Any of the above counters going bust is very unlikely.

They will likely be around 10 years time.

Buying into these counters will give the investor dividends in

January
February
March
May
July
August
September
November
December

Whenever dividend comes, simply invest them into counters which would be paying dividend soon. And repeat the process.

Using this strategy, a cagr of >10%, (usually 12-15%pa) is easily achieveable.

NOTE; FOCUS ON USING CASH FLOW TO INCREASE CASH FLOW. DON'T KEEP LOOKING AT PORTFOLIO SIZE. OVER TIME, THE PORTFOLIO HAS TO KEEP UP WITH THE INCREASED CASH FLOW(IE DIVIDENDS)