Dear Smart Investor,
It’s heartening to see the hustle and bustle return to Changi Airport.
With reopened borders and a resumption in air travel, many have been eagerly snapping up air tickets to travel once again.
Being cooped up in Singapore for more than two years, I naturally couldn’t resist the urge to make a short trip as well.
My idea was to start small – a trip to Malaysia.
It turned out to be a great decision as the brief holiday provided some respite away from the routine in Singapore.
Additional cash flow
Many of us are ready to travel, or already have travelled, since the borders have reopened.
That’s why dividends are so handy for times like these.
The robust dividend portfolio that I’ve built up over the years has provided me with passive income to spend on a nice holiday.
By owning resilient REITs such as Mapletree Industrial Trust (SGX: ME8U) and Keppel DC REIT (SGX: AJBU), I’ve had the joy of seeing distributions flow in even when the economy was not doing well last year.
Dependable blue-chip dividend-paying stocks such as DBS Group (SGX: D05) and Singapore Exchange Limited (SGX: S68) have also supplied me with the extra cash flow to boost my cash reserves.
The best part?
Unlike working for a salary, I do not need to put in additional effort to earn extra income.
If you set up your dividend portfolio right, the one time-effort can produce passive income to fund your vacations.
Dividends in your pocket need not be limited to just travel alone.
The great thing about them is that you can choose to do anything you wish with the cash flowing into your bank account.
Whether it’s sipping a latte at a new café, or booking a Grab ride with all of its surcharges for convenience, all these simple pleasures can be funded by your passive income.
And as you add to your portfolio of dividend stocks, these inflows will also rise in tandem, allowing you even more flexibility to spend as you like.
A tangible reward
Dividends are also important in that they represent a tangible return on your investment that no one can take away.
Simply said, it’s money in your pocket that comes in like clockwork.
Share prices can be volatile at times and cause your unrealised capital gains to fluctuate wildly.
But dividends constitute a real return on your investment that is immune to share price movements.
The beauty of receiving dividends is that you can choose to reinvest the money back into the very same stocks that paid them.
This virtuous cycle of compounding not only helps you to steadily grow the value of your investment portfolio but also bumps up your dividend amount to better prepare you for retirement.
Build your dividend portfolio
So, why wait?
If you’re looking forward to a relaxing holiday or to trying out some food at a newly-opened restaurant, it’s time to consider building your dividend portfolio.
All it takes is for you to invest money into solid, dividend-paying companies that can reward you over years or even decades.
A one-time effort can — literally — pay you dividends in the future.
At our flagship service, The Smart Dividend Portfolio, we have placed our money in 25 dividend-paying Singapore stocks that continue to churn out healthy payouts through good times and bad. We continue to add to our portfolio, steadily investing our spare cash, and reinvesting the dividends.
We have already received over $3,000 in dividends from our portfolio, making up about 6% of our invested cash to date.
It’s an ongoing journey to build a cash-churning machine. But the results are worth it.
Making the right move during a recession could deliver sky-high returns for your portfolio. It might even be more than what you could make during a bull market. That’s why in our upcoming webinar, we’ll dive deep into the topic “How to make money during a recession”. Join us and discover what you must do in a downturn to pull in more returns than the average investor. Reserve a FREE seat here.
Disclaimer: Royston Yang owns shares of DBS Group, SGX, Mapletree Industrial Trust and Keppel DC REIT.