Dividend investment vs index investment

As mentioned by several others on this platform, i've dabbled into Robo, RSPs and just 3 months ago started to try DIY stock picking (mainly stable ones on SGX) to gain a sense of everything. But now I think i've had enough of DIY stock picking and would like to just focus on 3-5 key ones.

Im undecided between dividend investing vs index investing... the former seems to be very popular in Singapore and im currently holding stocks like Sheng Shiong and Yanlord for the divident (but not sure if it's actually a good move..?). However, everyone is also encouraging index investing as a safer, more structured way to go about investing for a long term..

Should i combine both? If so, how should i go about it? If not, should I just pick and focus on one methodology? It's confusing and I'm not quite sure how to go about it. Dividend still gives the 'fun' of stock picking of sort...

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Frankie Rappaport

02 Jun 2021

It is pretty easy, index investing via passive ETFs is best.

You only need a single one, that could be just f.ex.

VT

or

ACWI

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1M45

02 Jun 2021

Combine both. unless u have a huge capital & the dividend recieved make an impact to your life.

The fun of dividend is not stock picking, is recieving $$$ perodically 😁 regardless market up or down. And see your annual dividend getting bigger & bigger.

Index investing $$$ appreciate faster than dividend stocks but u have to sell it to get cashflow, but as a long term investor, u know u shouldnt do it. So basically "lock" there.

So i use index to rise capital. Use dividend recieve to judge how far i am away from retirement. I DCA to dividend because sg market is slow. Lump sum periodically into US market whenever there is a correction.

Dividend porfolio is easier to forecast & plan eg. Ur portfolio generate 4% dividend. U want to increase $1k dividend this year, u need to pump $25k in this year. It give u a target.

Able to recieve the amount of $$$ i want monthly without doing anything that is my goal.

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