The Smart Investor
    Facebook Instagram
    Tuesday, January 31
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Investing Strategy»Get Smart: Finding Certainty During Uncertain Times
    Investing Strategy

    Get Smart: Finding Certainty During Uncertain Times

    There are investments you can rely on during tough times to bring you comfort.
    Royston YangBy Royston YangMarch 10, 20224 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Feet Left or Right
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    I’d be lying if I said that I wasn’t disturbed by the Russian-Ukraine war.

    Singapore may be far removed from this conflict but the biggest European war to break out since the end of World War II is a grim reminder that life can be unpredictable.

    The same goes for investing too.

    Valuations of growth stocks have plunged in the wake of the US Federal Reserve’s decision to raise interest rates.

    As a result, their share prices have also plummeted.

    Take cloud computer company Fastly (NYSE: FSLY) for instance.

    Shares of the edge computing firm have declined by 75% in the last one year.

    Meanwhile, Lemonade (NYSE: LMND), an insurance company that taps on artificial intelligence, has seen its share price shrivel by 88% from its all-time high of US$163.93 in February last year.

    After seeing such declines, you may wonder if there is anything dependable left in investing. 

    Is anything certain anymore?

    If you’re searching for certainty, there’s one area you can focus your attention on.

    And that is the realm of dividend stocks.

    The ability to pay out a dividend provides some measure of assurance that a business is doing a good job.

    If that dividend is rising, then it’s even better proof that the business can weather challenges and tough times.

    Take DBS Group (SGX: D05) as an example.

    The blue-chip bank, Singapore’s largest, recently reported a record net profit of S$6.8 billion.

    Its quarterly dividend was also raised from S$0.33 per quarter to S$0.36.

    The dividend increase is ample proof that the lender is confident of its prospects, and investors should be, too.

    Mapletree Industrial Trust (SGX: ME8U), an industrial REIT, has shown its ability to keep raising its distribution per unit despite the effects of the pandemic.

    Such stocks represent an oasis in the desert as they provide welcome relief from the lingering uncertainty associated with current events. 

    Cold, hard cash

    Growth investors also face another problem.

    The gains that they saw back in late 2020 until late 2021 were unrealised.

    With share prices of growth stocks witnessing a steep decline, most of these profits have all but evaporated.

    But a dividend that goes straight into your bank account is a return that is already locked in.

    And even if the stock subsequently declines in price, at least you’ve got that cold, hard cash that you can choose to utilise in whatever way you wish.

    To me, this certainty is priceless.

    An eye on retirement

    It can be argued that these events — whether they be a pandemic or a war, are all short term in nature.

    They should disappear or resolve themselves within a few months or years.

    However, there is one certainty that will remain true — eventually, there will be a time where you will have to call it a day and retire.

    Unfortunately, the economic uncertainty has become stark as the US and Singapore report high inflation rates that will all but crimp your spending power.

    To combat the effects of inflation, your best bet is to park some money in well-run businesses.

    And one option is to select stocks with stable or growing dividends that provide a yield that exceeds the long-term inflation rate.

    Singapore Exchange Limited (SGX: S68), Singapore’s sole bourse operator, pays out an annual dividend of S$0.32 per share.

    Income-seeking investors can reliably count on the stock exchange operator to keep its dividend constant even as it seeks new avenues for growth.

    By allocating your spare cash to investments that can maintain or grow their dividends, you are building up a stream of passive income that can last you through your retirement.

    Sources of certainty

    The world may be an inherently uncertain place, but you should actively seek out sources of certainty.

    And there’s probably nothing more certain in investing than receiving dividends.

    That’s what we do at The Smart Dividend Portfolio.

    By building a portfolio of dividend-paying stocks, we help to reduce the uncertainty in our lives to prepare ourselves for our eventual retirement.

    You can do the same, too.

    Don’t hesitate — join us now as we embark on a journey to find the best dividend stocks in Singapore.

    You won’t have to worry about uncertainty any longer. 

    And your future self will also thank you for your actions.

    For over 30 years, David Kuo has successfully built many winning portfolios. What’s his secret? We break it down for you in our latest FREE special report. Discover his strategies and stock insights for 2022. Click here to download now.

    Disclaimer: Royston Yang owns shares of Mapletree Industrial Trust, DBS Group and Singapore Exchange Limited.

    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    Merger and Acquisition

    What Makes Some Serial Acquirers So Successful

    January 30, 2023
    Data Centre (Sunlight)

    5 Key Takeaways from Mapletree Industrial Trust’s Latest Business Update

    January 30, 2023
    Screen Showing Share Prices

    Get Smart: Why You Shouldn’t Focus on Share Prices Alone

    January 29, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.