All about Dividends

[homer123]

 

[iadpotato]

any recommendations for any free app/website to track dividends?

dividends.sg seem to be not updating already... wonder what happened

 

[limster]

I see ASSI pushing a $588 dividend investing course on his website. From the photo on his blog it appears that he was a guest speaker previously (with mask and sunglasses) His link to course registration page, can see it is an affiliate link so he is earning 'passive' income by getting his followers to pay $588 for someone to tell them to buy DBS, UOB, and OCBC.

 

[laokorkor]

Just want to share my 2 cents in dividends investing. My dividends stocks are mainly in high dividends ETF.

- if you invest in bond funds for stability and income, you'll get hit by low or negative real returns because of the inflation. The best seller, "A Random Walk Down Wall Street", considers dividends funds/ETFs as a bond substitute. Sure, there's a higher volatility but you've a higher chance of earning good returns. But, the caveat is you need to take some volatility.

- dividends come from the fundamental/intrinsic value of the company while capital gains come from the prices of stocks. Prices are a pretty good judge of a company's worth but they can sometime be sentimental and can swing wildly. Thus, dividends are weighing machines and capital gains are voting machines in Benjamin Graham speaks.

- my personal data mining of the S&P500 series (from multipl.com website) shows that over the past 140 years or so, the standard deviation (a proxy of risks) of dividends is much lower than the standard deviation of S&P500 prices. You'll appreciate the nuance of this strategy if you dive into the periods such as the Great Depression or the Great Financial Crisis.

- since stocks prices gains and dividends distribution do not move in tandem, investing in dividend stocks can have a diversification effects.

 

[sohguanh]

Just want to share my 2 cents in dividends investing. My dividends stocks are mainly in high dividends ETF.

- if you invest in bond funds for stability and income, you'll get hit by low or negative real returns because of the inflation. The best seller, "A Random Walk Down Wall Street", considers dividends funds/ETFs as a bond substitute. Sure, there's a higher volatility but you've a higher chance of earning good returns. But, the caveat is you need to take some volatility.

- dividends come from the fundamental/intrinsic value of the company while capital gains come from the prices of stocks. Prices are a pretty good judge of a company's worth but they can sometime be sentimental and can swing wildly. Thus, dividends are weighing machines and capital gains are voting machines in Benjamin Graham speaks.

- my personal data mining of the S&P500 series (from multipl.com website) shows that over the past 140 years or so, the standard deviation (a proxy of risks) of dividends is much lower than the standard deviation of S&P500 prices. You'll appreciate the nuance of this strategy if you dive into the periods such as the Great Depression or the Great Financial Crisis.

- since stocks prices gains and dividends distribution do not move in tandem, investing in dividend stocks can have a diversification effects.

Whenever we invest using other currency than SGD please also factor that in when you buy and sell process. As long you don't convert is ok but the moment you convert you may lose. When you convert to buy and then convert to get back SGD the exchange rates are likely different if you invest for long term.

 

[DevilPlate]

Just want to share my 2 cents in dividends investing. My dividends stocks are mainly in high dividends ETF.

- if you invest in bond funds for stability and income, you'll get hit by low or negative real returns because of the inflation. The best seller, "A Random Walk Down Wall Street", considers dividends funds/ETFs as a bond substitute. Sure, there's a higher volatility but you've a higher chance of earning good returns. But, the caveat is you need to take some volatility.

- dividends come from the fundamental/intrinsic value of the company while capital gains come from the prices of stocks. Prices are a pretty good judge of a company's worth but they can sometime be sentimental and can swing wildly. Thus, dividends are weighing machines and capital gains are voting machines in Benjamin Graham speaks.

- my personal data mining of the S&P500 series (from multipl.com website) shows that over the past 140 years or so, the standard deviation (a proxy of risks) of dividends is much lower than the standard deviation of S&P500 prices. You'll appreciate the nuance of this strategy if you dive into the periods such as the Great Depression or the Great Financial Crisis.

- since stocks prices gains and dividends distribution do not move in tandem, investing in dividend stocks can have a diversification effects.

But subject to forex risk and 15% wht.

Those LSE listed dividend etf that i know give about 3-4% yield before 15% wht.
Unless u have some better recommendations?

 

[DevilPlate]

Looking at SGX listed QL3/O9P…..
Any red flags other than low trading volume & USD forex risk?

7%+ yield not too bad….worth the risk/reward ratio?

 

[laokorkor]

I agree that foreign investments are subject to forex risks. I just want to add a few points about global diversification and forex risks:

- global diversification can lower risks, despite the forex risks. It's recommended for even Americans by US investments books.

- our sovereign wealth funds, GIC and Temasek are globally diversified and make good returns despite forex risks

- there is no way for us to structure our lifestyle to avoid forex risks. Samsung/iPhones are priced globally, so are our food, cars, fossil fuels, clothes. So won't you want your expenses (tied to forex) move in lock steps with your investments?

- the SG stock market is simply too tiny to obtain adequate diversification.

 

[sohguanh]

Looking at SGX listed QL3/O9P…..
Any red flags other than low trading volume & USD forex risk?

7%+ yield not too bad….worth the risk/reward ratio?

If you are using USD to buy why not buy US listed ETF? Yes got 15% WHT but you need to think of SGX ETF when you sell got buyers or not if there is low to zero volume for the counter? Unless you don't intend to sell at all?

 

[sohguanh]

I agree that foreign investments are subject to forex risks. I just want to add a few points about global diversification and forex risks:

- global diversification can lower risks, despite the forex risks. It's recommended for even Americans by US investments books.

- our sovereign wealth funds, GIC and Temasek are globally diversified and make good returns despite forex risks

- there is no way for us to structure our lifestyle to avoid forex risks. Samsung/iPhones are priced globally, so are our food, cars, fossil fuels, clothes. So won't you want your expenses (tied to forex) move in lock steps with your investments?

- the SG stock market is simply too tiny to obtain adequate diversification.

Yes there is forex risk even if you use SGD to buy the investment which underlying is buying into USD stocks,ETF. But at least from your own calculation of profits and loss is much easier no need to factor in after sell convert back is actually how much SGD.

SGD buy SGD sell is much simpler formula to calculate profit and loss versus SGD convert USD then buy, then sell get USD convert back to SGD the actual profits or loss will then be the initial put in SGD minus the final converted SGD.

 

[DevilPlate]

If you are using USD to buy why not buy US listed ETF? Yes got 15% WHT but you need to think of SGX ETF when you sell got buyers or not if there is low to zero volume for the counter? Unless you don't intend to sell at all?

Got similar high yield bond etf listed on LSE? 6-8% yield before 15% wht

 

[limster]

already mentioned so many times that Irish domiciled US bond ETF like LQDE have 0% WHT. pls refer to their annual report/financial statements for info.

 

[homer123]

already mentioned so many times that Irish domiciled US bond ETF like LQDE have 0% WHT. pls refer to their annual report/financial statements for info.

Sometimes we get people commenting even though he/she has no experience in a particular market

 

[DevilPlate]

already mentioned so many times that Irish domiciled US bond ETF like LQDE have 0% WHT. pls refer to their annual report/financial statements for info.

Got any HY bond etf listed in LsE? >6% dividend/coupon yield

LQDE 4%+ nia…..might as well go for IdTL/IDTM?

 

[limster]

https://forums.hardwarezone.com.sg/...nt-positioning.6847545/page-35#post-149848476

The 'problem' with regular bond ETF is the risk of MTM losses.
Normally, if a bond drop in price but does not default, the investor will not lose any money, just hold to maturity. But most regular ETFs do not hold to maturity and have to sell earlier so the loss is "realised." The exception are the iBond ETFs like ID28.

I bought some ID28 to try. If I hold to 2028, I will get the full 6.16% YTM return as long as no default.

Like I mentioned in this quote above, I bought ID28 when the YTM is 6.16% for an investment grade bond ETF. Furthermore, if there are no defaults, this YTM is 'guaranteed' because the fund holds to maturity.

6.16% YTM is good enough for me and its investment grade, I got no interest trying junk bond ETFs, where they don't hold to maturity and the risk of MTM losses is much higher.

 

[yslvlys]

I see ASSI pushing a $588 dividend investing course on his website. From the photo on his blog it appears that he was a guest speaker previously (with mask and sunglasses) His link to course registration page, can see it is an affiliate link so he is earning 'passive' income by getting his followers to pay $588 for someone to tell them to buy DBS, UOB, and OCBC.

I don't see this course in his latest blog post? Maybe he took it down liao? You have the link? Wanna see how ridiculous it is lol

 

[limster]

I don't see this course in his latest blog post? Maybe he took it down liao? You have the link? Wanna see how ridiculous it is lol

I prefer not to post link , but its in his 28 Feb 24 blogpost, together with photo of him in the previous years' course.

 

[yslvlys]

I prefer not to post link , but its in his 28 Feb 24 blogpost, together with photo of him in the previous years' course.

Yeah i read that post. Abt ocbc one right? Still don't see it. Maybe my browser blocked the ad..

 

[yslvlys]

I prefer not to post link , but its in his 28 Feb 24 blogpost, together with photo of him in the previous years' course.

Haha just saw it. But it's not the 28 Feb post, it's in the 26 Feb post

 

[homer123]