Advice needed

[DevilPlate]

No need to argue.

3 local bank shares cannot be “low risk” no matter how u argue.
Shares/stock market is a risk on asset.

However, i would deem MBH as low risk.
Astrea will be higher risk than MBH relatively.

 

[DevilPlate]

https://www.nikkoam.com.sg/funds/nikko-am-sgd-investment-grade-corporate-bond-etf
Refer to their factsheet as at 31 March 2025
YTM: 3.26% (TER 0.26%)
Weighted average duration: 5.75years

Today 5y SGS: 2.15%
https://eservices.mas.gov.sg/statistics/fdanet/SgsBenchmarkIssuePrices.aspx

Overall MBH nett YTM 3% vs 5y SGS at 2.15%
Worth it? I think so-so


Astrea 8
https://www.azalea.com.sg/products/astrea-8

How to calculate A1 YTM based on current price of 1.049

 

[singaporean11]

If you believe the government is going to bail out all shareholders at 100% of pre-crisis valuation (in this hypothetical), I think you have a brave belief.

Not 100% of pre-crisis valuation, but didn't US Gov bailed out US banks and "too big to fail" US companies like Citibank, Bank of America, Goldman Sachs, Morgan Stanley, GE Finance, AIA, etc. even after US Gov claimed no country should never bail out their private banks?!

 

[Eternit]

I also have some spare cash that I wanted to get my hands on local bank stocks. I already DCA-ing religiously to VWRA and Amundi USA prime + Amundi World Index, just wanted to diversify a bit and get local bank stocks that pay good dividends over time. In all honesty, a bit jealous of people like @Dividends Warrior and others who can get steady stream of dividend income from local banks. Not only is it a stream of extra income (for practically no effort), the stock value increase over time too (historically, I know). But I think @BBCWatcher is against dividend investing and when I asked him about it previously, he explained quite persuasively why buying accumulating ETFs is better than dividend distributing stocks. So yeah, I'm still just doing the DCA to the 3 ETFs. Don't know will regret not getting local bank stocks in the future or not lol

 

[Celibrium]

I also have some spare cash that I wanted to get my hands on local bank stocks. I already DCA-ing religiously to VWRA and Amundi USA prime + Amundi World Index, just wanted to diversify a bit and get local bank stocks that pay good dividends over time. In all honesty, a bit jealous of people like @Dividends Warrior and others who can get steady stream of dividend income from local banks. Not only is it a stream of extra income (for practically no effort), the stock value increase over time too (historically, I know). But I think @BBCWatcher is against dividend investing and when I asked him about it previously, he explained quite persuasively why buying accumulating ETFs is better than dividend distributing stocks. So yeah, I'm still just doing the DCA to the 3 ETFs. Don't know will regret not getting local bank stocks in the future or not lol

From another perspective, DBS was hovering at $18 for most of 2020 during Covid. 1000 shares bought back then would have costed $18,000. Dividends paid since then till date is approx $7,520, ie almost already 50% of your capital. Based on current dividend yield, a crazy 12%. Not even mentioning the capital gains yet.

 

[BBCWatcher]

I also have some spare cash that I wanted to get my hands on local bank stocks. I already DCA-ing religiously to VWRA and Amundi USA prime + Amundi World Index, just wanted to diversify a bit and get local bank stocks that pay good dividends over time.

Buying any individual stocks within the global index when you're holding a global stock index fund is the opposite of diversification.

From another perspective, DBS was hovering at $18 for most of 2020 during Covid. 1000 shares bought back then would have costed $18,000. Dividends paid since then till date is approx $7,520, ie almost already 50% of your capital. Based on current dividend yield, a crazy 12%. Not even mentioning the capital gains yet.

Yeah, so? 5 years ago NVIDIA was below US$8 per share. Yesterday it closed at US$113.82. Not counting a bit of dividend income.

 

[DevilPlate]

Buying any individual stocks within the global index when you're holding a global stock index fund is the opposite of diversification.

Yeah, so? 5 years ago NVIDIA was below US$8 per share. Yesterday it closed at US$113.82. Not counting a bit of dividend income.

Is there any stock that outperform BTC since 2009

 

[BBCWatcher]

Is there any stock that outperform BTC since 2009

That's difficult since Bitcoin debuted with a price of zero. Stocks don't do that; they IPO at some non-zero value. At the beginning if you just started playing with Bitcoin as a hobbyist you got some. Even if 1 Bitcoin had a value of $0.01 today, its growth in value would be mathematically infinite in percentage terms.

I don't have a good list of the absolute best performing stocks over that time period. However, I see one high flying stock you might've heard of: Monster Beverage Corp. (MNST). On May 1, 2009 (about 16 years ago) its stock was US$3.42 per share (split adjusted). Yesterday it closed at US$60.91. It was under US$1 per share (split adjusted) 20 years ago, and you don't have to go back too much farther when it was US$0.01 per share (split adjusted).

 

[Eternit]

So @BBCWatcher, do you not think those who hold dividend stocks and gets a steady stream of dividend income are doing well? Or you're saying they could have done much better if the amount they invested in dividend stocks are instead invested in accumulating ETFs?

 

[BBCWatcher]

So @BBCWatcher, do you not think those who hold dividend stocks and gets a steady stream of dividend income are doing well? Or you're saying they could have done much better if the amount they invested in dividend stocks are instead invested in accumulating ETFs?

I'm saying that for liquid, non-lumpy investments it simply doesn't matter what form(s) net returns take. Net interest, dividends, and capital gains are all equally great. I don't think you should filter liquid, non-lumpy investments based on how they deliver returns to shareholders.

There's also some investment psychological evidence (such as this study) that $1,000 in capital gains spurs less additional consumption than $1,000 in dividends would, on average. If you're trying to be disciplined in your consumption spending, filtering investments in favor of dividends (and thus against capital gains) is not helpful. Indeed, you could make an argument that filtering investments to favor capital gains (and to disfavor dividends) would encourage more responsible consumption patterns.

 

[CrashWire]

That's difficult since Bitcoin debuted with a price of zero. Stocks don't do that; they IPO at some non-zero value. At the beginning if you just started playing with Bitcoin as a hobbyist you got some. Even if 1 Bitcoin had a value of $0.01, its growth in value would be mathematically infinite.

I don't think that makes sense.

BTC was as good as a private stock before the first exchanges popped up, and the first trade on the famous MtGox was at $0.04951:

https://cryptopotato.com/10-years-ago-first-bitcoin-trade-on-mt-gox-for-0-05-per-btc/

 

[BBCWatcher]

I don't think that makes sense. BTC was as good as a private stock before the first exchanges popped up, and the first trade on the famous MtGox was at $0.04951:
https://cryptopotato.com/10-years-ago-first-bitcoin-trade-on-mt-gox-for-0-05-per-btc/

Mt. Gox launched about 18 months after Bitcoin did. You could collect free (in cash outlay terms anyway) Bitcoins at the beginning in 2009 if you simply downloaded the early software and ran it.

 

[Dividends Warrior]

I also have some spare cash that I wanted to get my hands on local bank stocks. I already DCA-ing religiously to VWRA and Amundi USA prime + Amundi World Index, just wanted to diversify a bit and get local bank stocks that pay good dividends over time. In all honesty, a bit jealous of people like @Dividends Warrior and others who can get steady stream of dividend income from local banks.

Come join the dividend party!
I just received a nice chunk of dividends from OCBC yesterday.

 

[limster]

I also have some spare cash that I wanted to get my hands on local bank stocks. I already DCA-ing religiously to VWRA and Amundi USA prime + Amundi World Index, just wanted to diversify a bit and get local bank stocks that pay good dividends over time. In all honesty, a bit jealous of people like @Dividends Warrior and others who can get steady stream of dividend income from local banks. Not only is it a stream of extra income (for practically no effort), the stock value increase over time too (historically, I know). But I think @BBCWatcher is against dividend investing and when I asked him about it previously, he explained quite persuasively why buying accumulating ETFs is better than dividend distributing stocks. So yeah, I'm still just doing the DCA to the 3 ETFs. Don't know will regret not getting local bank stocks in the future or not lol

Owning the local banks for more than 15+ years for me is like getting free money. Like others have pointed out, those who hold for a long time, the dividends already covered the purchase price of the bank shares, not to mention the capital gain.

Some people like to spread fear by pointing out stocks that have gone to zero.

Please DYODD and understand the difference between DBS, OCBC, UOB and banks that failed like Credit Suisse. If you can't tell the difference between DBS and Credit Suisse, then of course you shouldn't buy local banks. Those that are able to understand the difference, will realise that they are great stocks. I have benefited from capital gain and dividends for 15+ years. And frankly, so have some of my elderly relatives who only hold bank shares.

Come join the dividend party!
I just received a nice chunk of dividends from OCBC yesterday.

Power of CD!

 

[limster]

LYG and SAN are my main Euro banks holdings. I have lesser amounts of ING and BBVA, which outperformed LYG and SAN on a 5 year basis (sad because I should have bought more).

Of course, there's also no reason to restrict yourself to only local banks. Foreign banks have also done well (the % return is excluding the 5% dividend they pay each year, so total return need to add about 25% more). I never held Credit Suisse. Any investor doing fundamental analysis should be able to figure out why CS was no good.

 

[Youshallnotknow]

Good morning all.

For a person with a low risk appetite for investments, how do I maximise 500k? I'm thinking of the following:

- park 350k in T Bills (6 months)
- put 150k in the UOB One account

Your advice is much appreciated. Thanks in advance.

Show us you have 500K first