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Anonymous
With 10k in seed money I would like to start a portfolio of dividend yielding stocks such as Singtel, REITs etc
May I have advice on recommendations and allocations ?
And which platform to use? Any advice is kindly looked forward to
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Victor
10 Jun 2021
Financial Service Consultant at AIA
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Alex Chua
29 Feb 2020
Seedly student Ambassador 2020/21 at Seedly
One of the thing u may want to consider is cost when building your portfolio. The cheapest transaction (enter and exit) fee is $10. If u want to diversified, 10 stocks of $1000 will cost u $200. 5 stocks of $2000 each cost u $100. The former eats up 2% while the late eats up 1%
U would want to get your portfolio diversified. So pick 2 - 3 stocks and put the rest into robo advisors.
And do your research. Why singtel? Is it really a dividend play?
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This is a good strategy. Although you might start slow, but slowly the dividends will compound to give you more and more, eventually allowing you to sustain your lifestyle.
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I am not expert on the Singapore market, however the singapore S-REIT's dividends seem very attractive on global comparison, however inflation should also be acknowledged.
Anyway I would not recommend single equity investing but rather ETFs,
like the (mostly Singapore focused) Lion-Phillip S-REIT.
When thinking of dividend yielding stocks you should consider that dividends are only one part of stock investing, also the rise/fall of the stock price (= capital appreciation) must be considered. The following chart compares the 10 year price performance of the U.S. SP500 to one Singapore stock index ETF: Nikko AM Singapore STI ETF
The latter is almost a flat-liner compared to SP500, so maybe with Singapore stocks You have nice dividends but almost no capital appreciation or even losses.
The SP500 as an ETF (f.ex. VOO or IVV) currently has also nice dividend distribution (up to 2.0%).
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Ashley Wong
29 Jan 2019
Financial Assistant at Multi Management & Future Solutions
High dividends stock investing in SIngapore is really a very good idea. Dividend investing will be e...
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A well diversified portfolio will be good from income