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

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Wednesday, 23 June 2021

The Lifelong Joy Of Dividend Investing As One Source Of Retirement Income From A Freehold Investment Portfolio

Read? After Point X .....

After Point X, the joy of Panadol investing to ease heartache will transit into lifelong joy of Funadol investing as one source of retirement income on top of CPF in Singapore. Truly passive income! No?




Posted by Createwealth8888 at 07:39
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6 comments:

  1. Singapore Man of Leisure23 June 2021 at 10:57:00 GMT+8

    CW,

    Nothing is "bao jiak"... (as some long term investors have found out)

    Passive can be harmful to our pockets if its sleeping at the wheel...


    Regular dividends are a sign of healthy businesses except:

    1) When management is borrowing and using debt to maintain or increase the dividends.

    2) When dividends are paid out to yield hogs instead of reinvesting back to the business for future growth, R&D, etc...

    3) When the company is under challenge from new disruptors. ComfortDelgro and SPH anyone?


    Dividend GROWTH stocks where dividends GROW slowly every year are a better gauge of healthy businesses ;)

    ReplyDelete
  2. Spur23 June 2021 at 15:00:00 GMT+8

    Hi Uncle8888 & Smol,

    "Dividend GROWTH stocks where dividends GROW slowly every year are a better gauge of healthy businesses"

    True .... but (there's always a but! LOL) many people won't go for it ... or won't stick with it for the long term, coz:

    1) current dividend yield tends to be low, often below 2%. Even during Covid crash the average yield of such companies maybe around 3%-4%.

    2) Hence, it's a loooooong-term thing, during which you'll have to sit thru -30% or -50% bear markets & recessions. The benefits only come after a couple of decades of holding & RE-INVESTING the dividends.

    3) These are usually value oriented stocks, so you WILL experience DECADES of losing out to even the broad index like S&P500, let alone growth stocks. Like from 2009-2021.

    But like I always say, in investing there isn't a yes or no thing. You can allocate a portion of your portfolio to such stocks or funds & test it out.

    S&P doesn't publish its list of Dividend Aristocrats or Dividend Achievers (they expect you to pay for it, cheap bastards). But you can see the constituents from info published by funds or ETFs investing in these companies.

    E.g. This is the portfolio of NOBL, an etf replicating the Dividend Aristocrats.

    Since the investing is done quantitatively by formula i.e. just follow index criteria, some dogs will be inside until they fail the criteria e.g. stop increasing dividends.

    For e.g. I view IBM as a current dog. Exxon & Chevron are also potential long-term challenged businesses unless they can pivot adroitly.

    But the vast majority are GOOD STUFF. ;)

    ReplyDelete
    Replies
    1. Singapore Man of Leisure23 June 2021 at 23:52:00 GMT+8

      Spur,

      You think why I like to poke so called passive "investors" and yield hogs?

      Nothing is "bao jiak"!

      All investing strategies are "sound", in theory and with back-testing, but often we are our own worst enemies...

      We say one thing; do another thing altogether. Little lies we tell ourselves!


      On the other hand, fee-based and commissioned financial snake oils will be out of their jobs if they can't come up with a portfolio of dividend growth stocks (calling them Aristocrats is marketing spin genius) that can beat 1M65 hands down within a 30 years time horizon ;)

      Why bother otherwise?


      IBM is like SPH today. How the former greats have become mediocre...

      A good reminder long term investing is HARD!


      You think why I'm a trader?

      If I can't see beyond 6 months, what edge do I have when it comes to 30 years and beyond?

      LOL!

      Delete
  3. Createwealth888823 June 2021 at 18:43:00 GMT+8

    Cyclic stocks can be alternating between dividend-growth and dividend-reduction over economic cycles.

    ReplyDelete
    Replies
    1. Singapore Man of Leisure23 June 2021 at 23:55:00 GMT+8

      CW,

      You have answered yourself.

      No one should practice Buy and Hold when it comes to CYCLICAL stocks ;)

      Shhh....

      Delete
  4. hyom26 June 2021 at 10:56:00 GMT+8

    REITs and dividend stocks can crash 50% within a few months. 2008 financial crisis and 2020 Covid crash demonstrated that years of dividend income can be lost within a few months.

    Dividends as panadols is not effective when investment portfolio is savaged by a violent bear. If peace of mind matters a lot to the investor, then don't be too reliant on dividends and REIT income.

    ReplyDelete

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