Chinese New Year is upon us again.
The festive mood is infectious as shopping malls start hanging up decorations and playing Lunar New Year songs.
I remember the feeling of anticipation for this festival when I was a boy.
There are tons of snacks and a wide variety of good food that accompanies the holiday season.
The most enticing part of the celebrations, however, isn’t just focused on filling one’s stomach.
It’s the receipt of red packets, or hongbaos, filled with money, that really made my day.
I always received a healthy haul of hongbaos from relatives, family and friends.
The total amount would come up to a few hundred dollars — a tidy sum for a kid that received just a few dollars’ worth of pocket money for school every day.
As I matured into an adult, the amount of red packet money I received started to dwindle.
And very soon, it was my turn to start giving out hongbaos and stop receiving them.
But hongbaos doesn’t have to only come from your elders during Chinese New Year.
The January to February period will usually be filled with REITs and companies announcing their year-end results.
In tandem with the earnings releases, these stocks will also declare dividends.
In essence, I was receiving hongbaos all over again, only this time, it was from my investments instead of family and relatives.
I once again looked forward to Lunar New Year as it would be the season to receive dividend “hongbaos” chock full of cash.
Keppel DC REIT (SGX: AJBU) had just reported a full-year distribution per unit (DPU) of S$0.09851 for its fiscal 2021, with S$0.03506 to be paid out into unitholders’ pockets.
And industrial REIT Mapletree Industrial Trust (SGX: ME8U) had just declared a DPU of S$0.0349 for its fiscal 2022’s third quarter.
As these two REITs had announced a year on year increase in their DPU, it also meant that I was receiving a larger hongbao this year for my patience.
Enjoying the festivities
You can do the same, too.
By accumulating shares of dividend-paying companies and REITs, you will get to enjoy a nice fat hongbao when Lunar New Year beckons.
You’d be able to relive the magic of being a child who eagerly anticipates a juicy red packet.
These dividends enable you to enjoy the festivities better as your bank account becomes fuller from these cash inflows.
And if you are trying to pass on the good fortune to the next generation, why not consider gifting them some dividend-paying stocks instead of cash?
These stocks can continue doling out hongbaos long after your child has grown into an adult.
On behalf of the entire Smart Investor team, we wish everyone a Happy and Prosperous Year of the Tiger! Gong Xi Fa Cai!
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Disclaimer: Royston Yang owns shares of Keppel DC REIT and Mapletree Industrial Trust.