I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Wednesday, 29 July 2020

Local banks should cap FY2020 dividends, offer shareholders alternatives to conserve capital: MAS


Read? Local banks should cap FY2020 dividends, offer shareholders alternatives to conserve capital: MAS

The central bank in its release called on locally-incorporated banks headquartered in Singapore to cap their total dividends per share (DPS) for FY2020 at 60 per cent of FY2019’s DPS, which it said balances the objective of capital conservation with the interests of shareholders.

"We have carefully calibrated the restriction on dividends, taking into account the needs of investors who may rely on this income.”

Retirees kena f... by MAS! Cham liao!





10 comments:

  1. Ouch again!

    At start of 2020, dividend target was $80,000 (This was after achieving $78.8K in 2019)

    Then in mid - 2020, target reduced to $60,000.

    Now after this latest MAS guidelines, target reduced yet again to $50,000

    Dividend collected from Jan to Jul 20 : $38,300

    Even the $50,000 target is looking like a stretch.

    ReplyDelete
  2. Hard time for some retirees who may not be able to re calibrate their cash flow for few next years.

    Potential FI seekers want to like to review their income for life strategies.

    ReplyDelete
  3. At least not like in UK or EU, where both govts & central banks are telling their banks to give zero dividend, lol.

    2020 is basically washed out. For those with holding power > 3 years, these few months will be a period to buy stocks on pullbacks.

    ReplyDelete
  4. Hihi Uncle CW,

    Come, I jio you to Ethereum savings account. Interest rate varies between 0.01% to 1500% per annum! Kekeke

    ReplyDelete
  5. Hell hath no fury like a yield hog scorned...

    Morning open was a minor dip for the banks (as expected) until 10:20 am when someone dumped the bank stocks big time!

    Oh well... Missed the trade.

    Back to walk here, walk there I guess ;)

    ReplyDelete
  6. Ouch, double ouch.

    Dividend cut, portfolio value decimated. What next? When will the pain end? No more panadol.

    Hope CPF interest rates can be sustained. Last line of "defense".

    ReplyDelete
  7. Oh I just got reply from CPF ... Even if RA already have FRS or more, one can still do cash refund to CPF for housing withdrawals + accrued interest. It will go into OA.

    Hmmm, sounds different from what Uncle8888 got in reply.

    Btw, MAS didn't mention about buybacks? Banks can still do a ton of buybacks to boost stock prices. ;)

    Guess maybe not so prevalent in S'pore as compared to overseas where buybacks are more tax efficient then dividends e.g. in US, dividend payouts are subjected to either income tax (for locals) or withholding tax (for foreigners).

    ReplyDelete
    Replies
    1. You can refund your housing loan before 55 to CPF OA. Do it before celebrating your 55th birthday! LOL!

      Delete
    2. Heheh I asked them about after 55 scenario, with RA already created. They say still can?!? Think they should create black & white FAQ on this so that everybody can talk the same language. Lol!

      Delete
    3. LOL! Need to ask their Director. Why different answers given by CSOs?

      Delete

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