REgarding the posb blue chips RSP.
Guys i got 2 very simple question
PLease explain in layman terms
If somebody invests $100/month
So 1 year = $1200
How much dividends can he expect to receive?
2nd question, are dividends "cumulative"?
Meaning if i put in $200/month. Will i get MORE than twice the dividends of somebody who put $100/month?
I mean , the more you put obviously the more dividends you get. But my question is does the payout (ratio) becomes more rewarding?
The last time I checked, this RSP has 2 counters to invest, NikkoAM STI ETF and one Bond ETF. To understand more about dividends, you may read up at sticky thread for dividends.
Dividend is paid per unit(share).
http://dividends.sg/view/g3b This site allows you to check the dividend history. For the ETFs in this RSP, the dividends' rate is quite consistent. An example to understand div...
Example Singtel declares dividend of 6cents per share. If you hold 100shares of Singtel, you will be paid $6. If you hold 200shares, you get $12. Equivalently, for the RSP, when your investment amt increases, you are buying more units of the counter per month, meaning more dividend. However, the percentage dividend yield is the same no matter how many shares u buy.