Christmas is just around the corner.
Malls start to take down their Halloween decorations and replace them with tinsel, Christmas trees and presents.
And who can forget the same familiar Christmas tunes being played ad-nauseum almost everywhere you go?
Apart from Wham’s “Last Christmas”, which has been a staple Christmas ditty since 1984, the other regular song on the playlist is Mariah Carey’s famous “All I Want for Christmas is You”.
Investors, though, would probably welcome a slight change to the title of this popular tune.
For it would be a much happier Christmas if it was filled with dividends rather than just songs alone.
Tis the season to be jolly
Christmas is indeed a season to be giving, and it’s also a wonderful feeling to receive.
Over the years, that joy of receiving has been compounded by the presence of dividends as I sank more money into dividend-paying stocks.
Without a doubt, this passive flow of cash has been instrumental in helping me to better balance my budget.
What is Christmas without family and friends, right?
The dividends received from your portfolio can be used to bring joy and buy gifts for your loved ones.
REITs such as Keppel DC REIT (SGX: AJBU) and Frasers Logistics & Commercial Trust (SGX: BUOU) have enriched me this year with increased distributions.
And it can do the same for you too should you decide to park some money in REITs with great track records and strong sponsors.
The song “Silent Night” has always given me the impression of a calm, steady song to soothe my nerves.
In contrast to the many upbeat Christmas tunes out there, this song is a refreshing change with its gentle melody and slow tempo.
I am also reminded that we should say a prayer while we sing this classic, as with everything in life, luck plays a major role in achieving our dreams and desires.
When it comes to investing, luck also plays an important role in ensuring we can achieve our financial goals.
I was pleasantly surprised when a holding of mine, iFAST Corporation Limited (SGX: AIY), more than doubled year to date even after achieving a spectacular performance in 2020.
You can experience this too if you park some money in promising growth stocks that are well-positioned for continued prosperity as we head into 2022.
Whether it’s software-as-a-service businesses such as Salesforce.com (NYSE: CRM) or technology giants such as Microsoft (NASDAQ: MSFT), owning a piece of growth stocks means you open yourself up to the possibility of higher gains as these businesses grow and expand.
The little drummer boy
The rat-tat-tat of drums is a familiar sound that can be heard in the song “The Little Drummer Boy”.
Somehow, this song always reminds me of a person forging on like a stubborn soldier on a cold, chilly winter’s night.
This image is hard to shake off as it reminds us of how we should persevere in investing even when we encounter difficulties.
Though the markets may not always be in our favour in the short term, if we purchase shares of great companies, everything will turn out fine in the end.
Take Singapore Exchange Limited (SGX: S68), or SGX, for instance.
The bourse operator had declined around 25% from its year-high of S$12 even as the group has been actively building up its portfolio of products to cater to a wider group of clients.
As of this writing, SGX’s shares are down around 6% for the year after hitting as high as 24% above its price at the beginning of this year.
We need the mental fortitude and patience to hold on for the long term to see investments such as SGX bear fruit.
Have yourself a merry little Christmas!
Most of all, do remember why you are investing.
For some, it’s about the freedom to choose what you want to do with your life.
For others, it could be about building a nest egg that can continue to support you well into your golden years.
And whenever you can, do consider sharing your good fortune with others who are less fortunate.
From all of us at The Smart Investor, we wish you a very Merry Christmas and season’s greetings!
May your bank account will always see increased inflows of dividends in 2022.
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Disclaimer: Royston Yang owns shares of Keppel DC REIT, Frasers Logistics & Commercial Trust, Singapore Exchange Limited and iFAST Corporation Limited.