Tuesday, 27 September 2016

what a 10k dividend portfolio can do for you - safe and sound.

We all want stability and to be able to sleep in peace.

So familiar are these companies that almost everyone would know most of them and are comfortable buying what they know. Who doesn't have mails delivered by singpost? Who doesn't use singtel or call someone who uses singtel? Who doesn't know capitalmalls and frasers malls? Who doesn't know Mount E is the premier medical centre?
and the list goes on.....

and notice that a lot of these counters have vested interests overseas, thus reducing single country risks.

Here is a portfolio made up for all the familiar brand names in singapore. very likey they will continue to exist for the many years to come

Each counter is worth approx $1,000. total portfolio value is approx $10,000

On the right is the number of shares

singpost 600
singtel 250
capitalmall reit 400
frasers ct  400
parkway life  400
capitacom  600
comfort delgro  300
st eng  300
sheng siong  900
suntec  600


January singtel $17
February Reits $84.9
March singpost $9
May Reits Comfort St E Sheng siong $118.25
July singpost $9
August Reits singtel singpost comfort shengsiong $141.5
Sept St E $15
Nov $66.5


By february, the dividend would have hit a three digit mark. By May, we can start to compound!

Best of all, we don't really have to monitor this. Unlikely any of these counter will go bust any time soon.

This would be my reply to a retiree who asked me for help in investing his money in familiar stocks and want regular income yet dislike too much risk. I told him I am no expert financial adviser, but if I were him, I could consider the above counters.  Of course, we should just check on our investments every now and then to see if there are any changes. We shouldn't be too bothered about price changes. Price goes up, don't be too happy. Likewise price goes down, don't be too sad. If too bothered about price, maybe the best place is to keep our money in the bank.

Anyway,...we have 8 months filled up with dividends.

Small money to some...but they can turn handy to a lot of people out there.














6 comments:

  1. Hi,

    I personally think it is dangerous to suggest individual stocks without in-depth research. True, these stocks might continue to give dividends but there is no guarantee that their prices won't fall over time.

    Lazy Singaporean

    ReplyDelete
  2. i have gone through the businesses histories and dividends of these companies thoroughly and of the view that these are stable businesses with give regular dividends and should last for many years to come.
    of course, we should review them over time so see that there are any changes.
    as for the prices falling, personally, i won't worry too much so long as the businesses are more or less intact and continue paying dividends, and as prices go up and down everyday, no one can predict them accurately.
    for the dividend compounder, falling prices are better as they can purchase more for the same amount.

    ReplyDelete
  3. Many subject to industry disruption - so need to worry or monitor closely to get out before too late.
    E.g.
    Comfort vs Uber
    Capitalmall vs Taobao/Amazon/Ebay
    Singpost vs Email
    Sheng Shiong vs RedMart/Uber etc

    Also, many with Singapore single-country risk.

    ReplyDelete
  4. comfort has gone global, so less single country risk. it has various different transport businesses in different countries. agree that uber pose some risk to it, but i think comfort is taking some steps to counter this uber threat
    capitalmall has various tenants of various different businesses integrated in a airconditioned mall in a very hot place like singapore. this is something online cannot match. people need some place to shop and chill out. but agree that certain products will go the online route and perhaps more in future.
    singpost is going into ecommerce and elogistics, and its upcoming 2.5m sf mall will provide additional revenue soon. agree that its traditional mail business is slowly declining.
    shengsiong....so far we see that its revenues are still up yoy, new stores are opening up. though u are right, redmart is a threat.
    thanks

    ReplyDelete
  5. Now I understand, you're a dividend investor, who is unconcerned about price movements. Going forward, there is definitely risk in the companies and require monitoring, which might not be suitable for a retiree if he or she does not have finance knowledge. There is always monitoring needed if individual stocks are bought. Just my 2 cents.

    Lazy Singaporean

    ReplyDelete
    Replies
    1. i agree. but the monitoring is much less than if one would to buy small caps.
      like i said and i think most would also agree, everything has risk. if one really cannot accept risk, then i think the best way would be to place money in the bank and get the 1% or so interest. but then one would be losing money to inflation and wouldn't that be a confirmed thing to happen? No risk, yet confirmed to lose money to inflation.
      these are some of the companies which the retiree can look and feel the presence of these companies almost everyday.
      just my 2 cents too. :)

      Delete

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