Passive income thread

[BBCWatcher]

Passive income can also cover your taxes and expenses!

My understanding is that Revhappy is reinvesting interest and dividends, which he'd preferably not have to do since there are costs involved (broker commissions, direct and/or indirect tax loss on the distributions, lost yield between payout and reinvestment). But perhaps Revhappy can comment.

I would also remind everyone that we have an excellent, recent, local example of a "dividend star." Hyflux paid dividends for many years (and paid taxes on those dividends)...and apparently hasn't been profitable for the past 10+ years. And an awful lot of investors had/have a dividend fetish and are now holding worthless Hyflux shares and bonds.

Do not focus on dividends, especially to the exclusion of other factors. You will surely get burned (or at least pay higher direct and indirect costs) if that's what you do.

 

[Prof. Utonium]

My understanding is that Revhappy is reinvesting interest and dividends, which he'd preferably not have to do since there are costs involved (broker commissions, direct and/or indirect tax loss on the distributions, lost yield between payout and reinvestment). But perhaps Revhappy can comment.

I would also remind everyone that we have an excellent, recent, local example of a "dividend star." Hyflux paid dividends for many years (and paid taxes on those dividends)...and apparently hasn't been profitable for the past 10+ years. And an awful lot of investors had/have a dividend fetish and are now holding worthless Hyflux shares and bonds.

Do not focus on dividends, especially to the exclusion of other factors. You will surely get burned (or at least pay higher direct and indirect costs) if that's what you do.

Do you do growth ETF?

If so which would you recommend.Not truly interested in dividends for long term.

 

[bernie_en]

Hi all, I am new here. New to the forum and new to investing/trading as well.

A brief background - I have been saving money but not putting my money to work for the last 2 years that I have been working. I recently set up a brokerage account together with a CDP, but I am really not sure where to start. Have read a good number of articles online but I haven't found one that's focused enough for me to part with my money into stocks. Could anyone here please share some advice? Thank you very much, and it is much appreciated.

Best regards.

 

[tangent314]

Hi all, I am new here. New to the forum and new to investing/trading as well.

A brief background - I have been saving money but not putting my money to work for the last 2 years that I have been working. I recently set up a brokerage account together with a CDP, but I am really not sure where to start. Have read a good number of articles online but I haven't found one that's focused enough for me to part with my money into stocks. Could anyone here please share some advice? Thank you very much, and it is much appreciated.

Best regards.

Check out this thread https://deluxeforums.hardwarezone.c...advice-portfolio-junior-investor-5969340.html

 

[limster]

My understanding is that Revhappy is reinvesting interest and dividends, which he'd preferably not have to do since there are costs involved (broker commissions, direct and/or indirect tax loss on the distributions, lost yield between payout and reinvestment). But perhaps Revhappy can comment.

I would also remind everyone that we have an excellent, recent, local example of a "dividend star." Hyflux paid dividends for many years (and paid taxes on those dividends)...and apparently hasn't been profitable for the past 10+ years. And an awful lot of investors had/have a dividend fetish and are now holding worthless Hyflux shares and bonds.

Do not focus on dividends, especially to the exclusion of other factors. You will surely get burned (or at least pay higher direct and indirect costs) if that's what you do.

I haven't heard of any dividend investor in this forum that simply buy stocks with the highest dividend. Likewise, I never hear Growth investor say they must buy the stock with the highest price momentum or P/E.

Of course must do FA plus a little TA first, use asset allocation strategy and construct a portfolio that is consistent with your risk profile.

Thats why I have many REITs and dividend stocks but never touched Hyflux or APTT.

 

[bernie_en]

Thank you very much! Anything else apart from the thread?

 

[revhappy]

My understanding is that Revhappy is reinvesting interest and dividends, which he'd preferably not have to do since there are costs involved (broker commissions, direct and/or indirect tax loss on the distributions, lost yield between payout and reinvestment). But perhaps Revhappy can comment.

I would also remind everyone that we have an excellent, recent, local example of a "dividend star." Hyflux paid dividends for many years (and paid taxes on those dividends)...and apparently hasn't been profitable for the past 10+ years. And an awful lot of investors had/have a dividend fetish and are now holding worthless Hyflux shares and bonds.

Do not focus on dividends, especially to the exclusion of other factors. You will surely get burned (or at least pay higher direct and indirect costs) if that's what you do.

I am not a dividend fan, wherever possible I invest in instruments that do not pay dividends and somehow reinvest them, so EIMI, IWDA I like. My fixed deposits too, I could have chosen to have interest payout quarterly, but I don't, I ask them to payout at maturity and rollover the deposits on maturity, so I never see dividend or interest cash flows in my account statements.

 

[Dividends Warrior]

Another view that shows cumulative distribution of new inflow and profits.
So 20% of my networth is profits.

Did a simple one myself

 

[NewInvestor]

Did a simple one myself

Hi. Thank you for this pie chart. Does the paper profits include the dividends paid out by the shares/reits?

 

[revhappy]

Did a simple one myself

Awesome

 

[madtari]

FD that pays quarterly? U mean ur on 3-mths FD? Yet ur asking them to pay out once a year? BTW for FD u should always renew at end of maturity or else they will renew automatically for u at lousy rates.

I am not a dividend fan, wherever possible I invest in instruments that do not pay dividends and somehow reinvest them, so EIMI, IWDA I like. My fixed deposits too, I could have chosen to have interest payout quarterly, but I don't, I ask them to payout at maturity and rollover the deposits on maturity, so I never see dividend or interest cash flows in my account statements.

 

[Buzy_bee]

FD that pays quarterly? U mean ur on 3-mths FD? Yet ur asking them to pay out once a year? BTW for FD u should always renew at end of maturity or else they will renew automatically for u at lousy rates.

Except for CIMB who will renew the FD at current promotional rate. Although my FD amount is only S$10k which is below their requirement for FD promotional rate ($20k). Due to this, I have been rolling the 10k there for years.

If Maybank yes, need to show our face at the branch, ask to close the account then reopen to enjoy promotional rate.

 

[The_Only_Yong]

Hello all!
I’m 27 years old, earning about 3k a month
Wondering would it be wise to start buying stocks that gives dividends at my age and slowly build up my dividend portfolio until I can retire.
Can anyone here give me some tips?

 

[Dividends Warrior]

Hi. Thank you for this pie chart. Does the paper profits include the dividends paid out by the shares/reits?

No, the paper profit excludes dividends that I received throughout the years.
Just based purely on price appreciation.

 

[madtari]

I mean my parents let their FD roll over and the rate for 1yr FD is only like 0.5%? It's really very terrible. That's y u should never let it roll over. Better to renew with same or other banks, but never let it auto roll over.

Except for CIMB who will renew the FD at current promotional rate. Although my FD amount is only S$10k which is below their requirement for FD promotional rate ($20k). Due to this, I have been rolling the 10k there for years.

If Maybank yes, need to show our face at the branch, ask to close the account then reopen to enjoy promotional rate.

 

[cook123]

Reinvesting dividends together with a portion of monthly income regularly is a very powerful tool for dollar cost averaging and compounding
But it takes time though
Can’t expect fast results

 

[revhappy]

No, the paper profit excludes dividends that I received throughout the years.
Just based purely on price appreciation.

I am assuming you reinvested the dividends, so the cash injection figure includes your dividends. For correct representation you should show the dividends injected back as profits.

 

[focus1974]

Did a simple one myself

U no need to invest in stocks lah..
just do what you are doing best to be able to contribute so much capital..

Your effort and energy should be there.

Capital preservation and appreciation , u can let ur property take care.

You are the ideal property investor profile type.

GOt a business that generates a high cashflow income. It is good for bank loans approval and ability to pay installment short-falls. At the same time, ur saving rate affords you the ability to pay for another downpayment sooner than later.

The capital preservation part using property is its stability and will never go to ZERO while at the same time giving you cash monthly... in line with inflation.

The capital appreication part using property is ..as long as over the long run , and you believe in inflation and the depreciation of money, a property price will not stay stagnant at prices for more than a decade or two in worse case scenarios.

 

[Buzy_bee]

Hello all!
I’m 27 years old, earning about 3k a month
Wondering would it be wise to start buying stocks that gives dividends at my age and slowly build up my dividend portfolio until I can retire.
Can anyone here give me some tips?

Wondering about the same thing... I worry about capital depreciation since I am not familiar with this.

 

[Buzy_bee]

I mean my parents let their FD roll over and the rate for 1yr FD is only like 0.5%? It's really very terrible. That's y u should never let it roll over. Better to renew with same or other banks, but never let it auto roll over.

Yep. I think all the banks (except cimb) will give terrible rate of 0.05% if u auto roll