Coffee Meets Investing
Asked by Anonymous
Asked on 07 Jul 2018
1) When you're young/beginner and you're looking at investing for the first time. Being a Financial Advisor, I've found that a year of starting my beginners of on dividend funds has been really encouraging for them, to see their returns come in month after month.
2) When you're old. Most of them will then transition into funds that have signficant growth, because dividend funds tend to be limited via bonds with leverage on the bonds itself or currency, or just REITs - either way, they don't tend to surpass a 9% mark, while going into equities gives you that chance. So as fun as it is to see dividends every month, you're not likely to use them as a young investor.
So when you're old, most people transition from their 80-20 Equity-Bonds into more bonds, and more fixed income, and by extension something that provides them with more dividends.
The best age/time is really about your scenario and risk appetite.
Fixed income is one of my investment specialties. I have funds that do 4.2% up to 8.66% annually, depending on your risk. You can always reach me if you'd like to explore.
Yesterday... time is a friend in investing, the earlier the better
Short answer: yesterday
but you must first understand how companies give out dividends (dividend policy). If the company still young and growing it is not very prudent to give out dividends when it can be injected back into company for higher rate of growth.
Surprisingly, I have discovered a Singapore stocks blog, where they are sharing amazing information about singapore stocks investment. And I found a information rich blog post on dividend stocks. i was wondering that you might be interested to check this list of dividend stocks. https://www.mmfsolutions.sg/blog/top-10-high-dividend-paying-singapore-stocks/
As young and as soon as possible as time in the market is more important
As early as possible, as some others have already mentioned. When you are still young, you have a longer time horizon to accumulate the assets needed to build a sizeable portfolio which are dividend paying. Can look into reinvesting the dividends as well, either manually or if the share counter allows it to be done automatically. All the best in your journey.
It's always good to start as early as possible because time value of money is always diminishing. So if you have sufficient emergency funds, you can start doing your own research and read up more to find out more about dividend investing before going into it.
There is a popular chinese saying goes "The best time to plant a tree (Invest) was 20 years ago. The second best time is now!"
It means that if you want success and growth in the future, the best time to act is NOW!
A good time would be after you have built up your emergency funds
The excess can go into investment and the dividend payouts will help generate a steady flow of income.