Dividends

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Dividends
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun
    21 Answers, 42 Upvotes
    Answered 5d ago
    Risk can be managed via diversification. For example, say you have all your investment money in DBS. this exposes you to not only the global macroeconomic risks such as the Trade War between China and US that affects all companies, but also DBS's own industry specific and firm specific risk, such as a scandal regarding DBS's financial statements, or increase rules and regulations by the Central Bank of Singapore that leads to more stringent requirements for DBS's operations. The risk here that can be "taken away", or diversified away, are the industry and firm specific risk, as you add more and more stocks into your portfolio to make it more diversified and covering many different sectors of the Singapore economy. Adding more stocks does not mean getting more stocks from the banking industry (which will mean that industry risk still remains), but also adding stocks such as Starhub, CapitaLand Mall trust, Venture Corp etc. The ups of one firm in another industry covers the down of another firm, and so the deviation of returns you experience become more and more stable, until all the risk you are left with is the Global Macroeconomic risk that affects all companies, which cannot be diversified away . This is the crux behind the whole idea of risk management. Of course I am giving you a rather layman version of this, but that is why many people recommend investing in broad index funds and ETFs that purchase a broad variety of stocks that track the performance of a particular index, which are tied to the performance of the economy. Such an example of this is the STI in Singapore, which comprises of 30 of Singapore's largest companies. For someone who does not track his investments frequently, I suggest looking into perhaps an ETF that tracks a broad market cap weighted index, or a passive index fund that basically "tags" and tries to follow a benchmark index as closely as possible, providing generally respectable market returns. However, you must take note of the costs of management of such funds and ETFs, for such passive funds, low costs of management are essential in ensuring you are getting the best returns for your investments. If you would like to learn more about such concepts of index funds and indexing, might I suggest a book " A little book of common sense investing" by John C. Bogle, founder of the Vanguard Group, and is credited with the creation of the world's first mutual fund. I have gained much insight regarding index funds from there!
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    Answered 3w ago
    If you have some investment horizon, look for growth first instead of dividends. You'll need to accumulate a million dollar portfolio to give you 50k per annum dividends. Also, you can set one up with an FA using funds, or look at individual bonds and stocks and REITs.
  • Asked by Anonymous

    Loh Tat Tian
    Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding

    Top Contributor (Jan)

    232 Answers, 331 Upvotes
    Answered 4w ago
    Personally, I would encourage a structured way to learn investing. 1) Understand what are the basics, what kind of financial Instruments are available? 2) Understand yourself. What is your risk appetite and your goals. What if, the goals cannot be met if you have low risk appetite)? 3) Are blue chips really all safe? (hyflux, AIG, creative, keppel, Starhub, singtel? 4) economy changes and the effects on business (in turn affects their financial and stock market value)? 5) why does the index survive 100 years but stocks drop out of the index?
  • Asked by Anonymous

    Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic

    Top Contributor (Jan)

    278 Answers, 395 Upvotes
    Answered on 16 Jan 2019
    https://blog.seedly.sg/which-regular-savings-plan-is-the-cheapest/ The usual stock risks. You have to be able to handle volatility in stocks to hold on if not you will just pull out when the price drops which is not good. Yea there will be dividends and some you can choose to reinvest the dividends if im not wrong.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered on 18 Dec 2018
    The Drwealth.com i see is just explaining what is cum dividend and ex dividend. He didnt recommend u shouldnt buy on XD. He is saying do not freak out when price dips on XD.
  • Asked by Anonymous

    Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic

    Top Contributor (Jan)

    278 Answers, 395 Upvotes
    Answered on 26 Oct 2018
    They take from the ETF assets if im not wrong. So ETF with no dividend same.

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