Dear Smart Investor,
I’m getting ready to watch the National Day Parade later this evening.
After enduring two tough years of lockdowns and movement restrictions, the parade is back in full force this year.
Sit back and relax
This National Day, it’s a good time to sit back, relax, and finally enjoy the festivities.
I’m certainly going to do so.
It helps that my personal portfolio and the portfolios that we run at The Smart Investor, including our flagship service, The Smart Dividend Portfolio, will continue to chug along, growing steadily day by day.
Our portfolio is filled with a careful selection of strong businesses. And that means that it allows us to sleep well at night, knowing that we are betting preparing ourselves and our families for our eventual retirement.
You’ve got your troubles, I’ve got mine
For those of you who are old enough to remember the song by The Fortunes, everyone has their own set of problems to deal with.
The nagging worry of high inflation, coupled with a potential slowdown in the economy, are might make some of us feel vexed.
That’s why it’s important to take a step back now and then to assess where you stand and whether your investment portfolio is built to cope with adversity.
Does your investment portfolio deliver a yield that is higher than long-term inflation?
If not, it may be time to reallocate some of the money into stocks with higher dividend yields.
Right now, reputable REITs such as Mapletree Logistics Trust (SGX: M44U) and Frasers Logistics & Commercial Trust (SGX: BUOU) are paying out distribution yields of 5.1% and 5.4%, respectively.
Or if you prefer the comfort of blue chips, DBS Group (SGX: D05) has a trailing dividend yield of 4.3% while contract manufacturer Venture Corporation Limited (SGX: V01) sports a dividend yield of 4.2%.
It’s also a great time to do a clean-up of your portfolio to rid yourself of duds and lemons.
By reallocating the money to more promising investments, you increase the chances of chalking up a good long-term performance.
There’s nothing holding me back
The key is to soldier on and remember that a well-built, strong portfolio should allow us to sleep well at night.
Bad news will always swirl around the internet and news outlets.
There’s good reason to feel optimistic as Singapore transitions to its new normal.
Recessions don’t last forever.
Neither does high inflation that threatens to eat away at our savings.
By consistently putting your money into well-run businesses, you can slowly but surely build up a rock-solid foundation for your portfolio.
Get Smart: A Rock-Solid, Strong Portfolio
At The Smart Investor, we continue to be fans of income or dividend investing.
Income investing, when done well, can be a way for any investor to enjoy a passive stream of income, that you can choose to reinvest, or spend on whatever your heart desires, while sleeping well at night.
Happy National Day!
Did you know there are 5 REIT sectors with a high potential for creating passive income? If you are building retirement wealth, this is crucial information. We have a new report that details all you need to know about them. Find out which sector to pay attention to, and see if you can fit them into your portfolio. Click HERE to download the guide here for free.
Disclaimer: Royston Yang owns shares of DBS Group and Frasers Logistics & Commercial Trust.