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Anonymous

18 Apr 2019

∙

General Investing

Should I buy dividend paying stocks or unit trusts that pays out dividends?

Have a small lump sum coming in a few months time, would be interested to buy into something that focuses on paying dividends (7-8%). As per the question, which should I buy if I'm not focusing on the stock price or NAV increasing? Please let me know the reasons also if possible, thanks!

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Jonathan Chia Guangrong

01 Feb 2019

SOC at Local FI

Dividend paying stocks for sure. You only need to pay the broker commission for buying / selling the stocks. Look into reits for stable dividend payouts.

On the other hand, UTs will be subject to many fees, including but not limited to bid offer spread, management fees, platform fees and if you are buying through an insurer, admin and policy fees. How much do you think these fees will erode into long term profits? Oh, and dividends paid out are from NAV so price will drop. Avoid like the plague

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