Thursday, May 8, 2014

Dividend Income for May - Fruits of Our Freedom

The month of May has been my favorite month of the year because of dividends that start pouring in, rewarding shareholders that believe in the company throughout the thick and thin.


I love dividends simply because they are hard actual figures that anyone anywhere in the world can earn. They represent the fruit of my labor which I have built up over the past couple of years. When you see your dividend income grows over time, you know that your past hard work has finally paid off. The best thing about this is I have created a system where it will auto-generate passive income for me the following year the same time, again and again, until the day the I never see another day.

Dividend investing is a fantastic strategy in my opinion. Rising dividend income is usually most predictable and can be used as a cash inflow to dictate our expenses during the month and for budgeting purpose the next couple of months. Most notably, they can one day replace your active income without having your physical presence to manage the day to day business. Someone is there for you to do the job!!

It's a fantastic feeling to be receiving S$6,132.00 in dividend income this month. This alone is already more than the salary I received from my company. With the money, I will probably use a portion to finance my May and Jun expenses and re-invest the rest into some quality stocks that could give me higher dividends in the future. What a nice cycle to be in.


CompaniesTotal Dividends ($)
FraserCenterpoint Trust864.00
Vicom870.00
Sembcorp Ind850.00
SPH350.00
FraserCommercial Trust225.50
Neratel800.00
First Reit258.70
ST Engineering360.00
MGCCT620.00
China Merchant Pacific722.50
Ascendas Hospitality Trust192.50
Mapletree Log Trust18.90
6,132.10

I hope that for those who are just starting out, that it is important not to give up at the early stage. The fruits and dividends you will receive will make your investment and journey all these while worth the every single effort you put in today.

12 comments:

  1. Good advice for those just starting out; to both old and young.

    ReplyDelete
    Replies
    1. Hi MH

      Good reminder to ourselves as well at times ;)

      Delete
  2. Thanks for sharing. this is very encouraging. i just started investing and always feel so happy to receive div! lol

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    Replies
    1. Hi Melting Starz

      I remember the days when I just started investing and received my first dividends. I was so happy to attain it :)

      Delete
  3. With the recent rise in CPF minimum sum, I feel that dividend investing is all the more important in creating a stream of passive income for those who wish to retire by 55.

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    Replies
    1. Hi Betta Man

      It's a requirement that every Singapore must meet in order to fund their retirement ;)

      Dividend investing is just another form of passive income through different stream.

      Delete
  4. Dividends themselves are NOT inflation adjusted as passive income stream.

    We have to increase our investment to receive more dividends and/or we hope to invest in more dividend-growth stocks and capital appreciation for investment income by assets drawn-down.

    ReplyDelete
    Replies
    1. Hi Uncle CW

      If we take a view from another angle, the company that we invest in will increase its revenue as inflation creeps up. EPS should have adjusted higher which results in a higher dividends over time for investors as well.

      Delete
  5. Hi,

    Your portfolio is very heavy on REITs. Aren't you afraid when tapering finally ends, your REITs will suffer?

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    Replies
    1. Hi Anonymous

      I am pretty confident about the Reits I have in my portfolio as they have prudent management about debt and gearing. FCT for example have fixed rate at 2.7% while MGCCT has a net effective rate at only around 2.2%.

      Tapering has been around for years now and investors should just stay calm and focus on the value of each individual stock.

      Delete
  6. Congrats on your bountiful harvest! More to come for everyone!
    - PIB

    ReplyDelete
    Replies
    1. Thanks PIB.

      And looking forward to more post from you as well :)

      Delete

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