Starting young is great as it allows you to have many decades to compound your wealth.
However, not everyone discovered investing early in their life.
If you start investing in your 30s, you face a set of different financial circumstances.
Some will be hitting the middle management level with several years of working experience under their belt.
As such, salaries will also be higher than what you used to earn in your 20s.
And if you adopt prudent financial habits, you should have a much larger cash stash with which to invest.
Meanwhile, many of you may be looking to settle down, get married and start a family.
Hence, your investment portfolio at this stage of life would probably benefit from a healthy mix of both growth and dividends.
As you’re still in the prime of your life, more of the focus will be on growth while some passive income helps defray the additional expenses that come with various commitments.
Here are three stocks that would be perfect for an investor in this age bracket.
DBS Group Holdings Ltd (SGX: D05)
DBS Group needs no introduction, being one of Singapore’s three big banks.
The lender has demonstrated its resilience during this pandemic by posting record earnings of S$3.7 billion for its fiscal 2021 first half (1H2021).
At S$30.06 per share, an investor in his 30s will be better able to afford to buy a decent amount if he has sufficient opportunity funds.
The bank has managed to grow its non-interest income by 26.2% year on year to offset the decline in net interest income due to prolonged low-interest rates.
Investors can also obtain a decent forward dividend yield of 4.4% as DBS has restored its 2019 level of dividends of S$0.33 per quarter.
The group has put in place several growth initiatives to help the bank to diversify its revenue streams.
One of these is the setting up of a cryptocurrency exchange called DBS Digital Exchange that leverages blockchain technology to provide fundraising opportunities through asset tokenisation and the trading of digital assets.
Other promising business developments include the development of a carbon exchange in collaboration with Singapore Exchange Limited (SGX: S68), Standard Chartered Bank (LON: STAN) and Temasek Holdings for high-quality carbon credits.
DBS is also seeking acquisitive growth with the purchase of Lakshmi Vilas Bank in India late last year.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT that owns a portfolio of 19 data centres across eight countries.
Its assets under management (AUM) stood at S$3.1 billion as of 30 June 2021.
The pandemic had created a surge in demand for data storage as businesses digitalised and more people went online to telecommute and communicate with loved ones.
Keppel DC REIT reported a robust set of earnings for 1H2021, with revenue rising 9% year on year to S$135.1 million and distribution per unit (DPU) jumping by 12.5% year on year to S$0.04924.
The REIT offers a great mix of both growth and dividends, with its trailing 12-month dividend yield clocking in at 3.8%.
Keppel DC REIT also recently announced two acquisitions to boost DPU growth.
The first was the purchase of its first data centre in China. The REIT forked out around S$132 million to acquire a fully-fitted data centre facility in Jiangmen, Guangdong province.
The second involved the acquisition of the REIT’s third data centre in the Netherlands for around S$59.9 million.
Both acquisitions are expected to boost the REIT’s DPU.
PayPal Holdings Inc (NASDAQ: PYPL)
PayPal is one of the market leaders in the digital payments space.
The company runs a platform that connects merchants and customers, allowing for safe, hassle-free and secure funds transfers.
The pandemic has accelerated the company’s growth and investors can be confident that there is still significant momentum for revenue and earnings to increase over the years.
For 1H2021, net revenue grew 24.2% year on year to US$12.2 billion while net profit jumped by 41.3% year on year to US$2.3 billion.
For the second quarter, total payment value surged by 40% year on year to US$311 billion.
The company also saw a 16% year on year growth in net new active accounts to 403 million, while transactions per active account rose 11% year on year to 43.5.
This acquisition will help to expand the company’s reach into the Japanese market and also boost its BNPL capabilities.
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Disclaimer: Royston Yang owns shares of DBS Group, Keppel DC REIT and PayPal.