As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Thursday, 21 January 2016

Depending On Your Dividends in the Land of Financial Independence For Small Retail Investor?



With Kep Corp cutting its FY 15 dividend to 34 cts instead of market expectation of at least 40 cts. This is a good reminder to Uncle8888 on the importance of strengthening his Tap 1 in his Three Taps Solution for Sustainable Retirement Income for Life.


Can we as small retail investors seriously depend on dividends as bulk of our "passive" income in the Land of Financial Independence?


For Tap 3 cash flow, Uncle8888 has downsized the cash flow on his two top holdings in view of more uncertainty in the next two years as follows:

Kep Corp's dividend to 30 cts in 2016,  28 cts in 2017 and 2018 

Semb Corp's dividend to 10 cts in 2016, 8 cts in 2017 and 2018


Revised Cash Flow for Tap 1 (Interests) and Tap 3 (Just on Dividend Income)
















12 comments:

  1. Life of a small retail investor in the Land of Financial Independence depending on "passive" income is harder than we think.

    ReplyDelete
    Replies
    1. CW,

      You and I have gone through late 2008 where we have experienced companies reducing and even suspending their dividends.

      I was telling temperament if that scenario happens to my core holdings again, I've to get back to full-time work :(

      Glad you have come back down to Earth ;)

      Was rolling my eyes when you were getting carried away with one of your readers about EQUATING the dividend yield from STI ETF (equities) as similar to Singapore bonds and CPF interest rate returns???

      If they are the "same", why you need so many taps in the first place?

      Passive income my foot!

      We got to work for it ;)

      Delete
    2. 100 different stocks of dividend yield of at least 5% yield may be "passive" enough for small investors. No?

      Delete
    3. CW,

      Another one that likes to reinvent their own rules and definitions...

      The last I heard, its still 30 stocks in STI ETF ;)

      OK, now its "homemade" DIY Singapore ETF?

      Happy can oredi!

      LOL!

      Delete
  2. For me diversify between diff ways of earning/receiving income is even better, rather than just diversifying financial assets?



    ReplyDelete
    Replies
    1. Unless retirees still want to work part-time to earn some income; we have to depend on diversifying into different "passive" income taps solution.

      Delete
    2. rolf
      so iron bowl rice job+ side income+ dividend income+ rental income?

      Delete
  3. yeah agree! to b v honest, if u can see v far from young, n do the building up of human capital to earn more when young, n start investing stocks or property much earlier, then when old, passive income need not be too much... or u can have a huge portfolio n even 2% return per yr is sufficient.

    We pass that phase... arggg...

    So only hope the younger generation can realise.

    Last resort, educate kids properly n they give u money when retire.. hahha but v difficult nowadays! Although my generation still do that.

    ReplyDelete
    Replies
    1. Not just financial independence. We have to be Big Retail Investors too. Life is tough! :-(

      Delete
    2. me and husband in mid 30, still able to work.
      we hope our portfolio can grow in 10/15 years time, then we can retire comfortably.

      Delete
  4. Actually if have to or force to, we can just live on fresh air and water & rice.
    It seems those were the days long gone.
    Once it was not uncommon in Singapore.

    We worry so much now, because we all so use to having more and more of the wants in daily living.
    It's O. K. but not so much until you get yourself and immediate family into financial troubles.
    That's why am i still investing?

    ReplyDelete
    Replies
    1. And don't be little CPF rates of interest.
      Combine all the accounts return and it is about 3.8% i guess.
      It not much but at least you can have something that allows you to sleep well at night no matter what happens to your other investment.
      Actually if only i know when i will go, why i need money?
      That's to me is the main problem.

      Delete

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