facebookShould I buy stocks (E.g. Nikko AM STI ETF, Keppel Infrastructure Trust, Overseas stocks) for a stable dividend return as a 19 year-old investor? - Seedly
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Alcander Seow

Alcander Seow

Level 8ยทEngineering With Business at Nanyang Polytechnic

31 May 2020

Should I buy stocks (E.g. Nikko AM STI ETF, Keppel Infrastructure Trust, Overseas stocks) for a stable dividend return as a 19 year-old investor?

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    What are your thoughts?

    Sharon

    Sharon

    28 May 2020

    Level 10ยทLife Alchemist at School of Hard Knocks

    If you buy individual stock, gotta make sure you monitor them because behind every stock counter is -- a company with people managing it.

    • Keppel Infrastructure Trust distribution per unit (3.72 cts) is more than its earnings per unit (0.82 cts). Is it sustainable to keep shareholders happy?

    • Also, Basslink is undergoing arbitration for the cable outage and is reported that they expect to settle it this year (hopefully).

    • KIT sold DataCentre One to Keppel DC Reit, before Covid-19.

    • KIT bought Ixom in Feb 2019, and it turned in a profit for them.

    • KIT debt servicing ratio is 65% in 2017 (27.5% in 2019). Previously it was highly leveraged.

    All these business decisions by the co. management and risk will impact the company and its earnings.

    Just throwing up these as an example, so if you want to invest in individual stock, you'll need to monitor the risks unqiue to the company & its business environment, as well as the business decisions they take. It's a risk-return consideration. That's why dividend yield is high, about 7.29%.

    If you buy ETF, then you don't need to worry all the above & can sleep better at night. It really boils down on whether you can do your own due diligence (i.e. there's a lot of reading, learning from others, maybe even taking up courses), your risk appetite, and risk-return expectations.

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      Nikko AM STI ETF is a good way to start. I started from there too. I took the POSB Invest Saver monthly DCA $100-$200 from the start.

      However, the returns are abit low @ around 3%. (Low risk, low returns)

      But I think its still a good starting point. Put in $100-$200 every month and accumulate. Then once you have enough capital, take it out and venture into higher risks.

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        Your money, your rules - as long you do your due diligence & dividend return appeal to you...

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