New opportunities are arising due to the changing landscape brought about by the pandemic.
As investors, the COVID-19 pandemic continually forces us to re-assess what we know about certain industries and businesses.
Previous assumptions may need to be altered in light of the changing habits and circumstances brought about by lockdowns and movement control restrictions.
As investors, we need to continually adjust our expectations and update it based on new information.
This mindset applies whether or not we are going through a crisis, as dynamic business conditions continually cause certain companies to flourish and others to falter.
The way we see it, there is an opportunity now to capture the “best of both worlds”.
To get a mix of growth and dividends within your investment portfolio.
Capturing growth through the next rising stars in the US
If you’re looking for growth, the US market offers a plethora of opportunities.
Many companies there are global and sell goods and services to all over the world.
Their track record of growth stretches over years, sometimes even decades.
Even companies in more traditional industries, such as Nike (NYSE: NKE) and Starbucks (NASDAQ: SBUX), continue to grow their store count and dominate the sports footwear and food and beverage industries, respectively.
And of course, with COVID-19 accelerating the digitalisation process, e-commerce has come to fore as a growth driver.
Aside from Amazon (NASDAQ: AMZN), other up-and-coming online retailers such as Sea Limited (NYSE: SE) and Etsy (NYSE: ETSY) have built a strong e-commerce platform or niche market.
And with more people going online and telecommuting, the demand for storage and digital services provided over the cloud is set to surge.
A whole host of cloud companies such as Snowflake (NYSE: SNOW) have gone public this year, offering enticing opportunities for investors to latch on to this new growth trend.
Or if you’re looking for alternative energy companies that are poised to do well after the collapse in oil and gas prices, there are fast-growing players out there such as SolarEdge Technologies (NASDAQ: SEDG) and Enphase Energy (NASDAQ: ENPH) with cutting-edge technology that promise the world a better, cleaner future.
Solid, stable income from Singapore stocks
For the intrepid income-seeker, Singapore stocks offer attractive dividend yields.
REITs offer steady dividends and are a good place to park some money if you wish to enjoy a passive income stream.
Other businesses Haw Par Corporation Ltd (SGX: H02) and Singapore Technologies Engineering Ltd (SGX: S63) also pay out dividends that have held steady even during this pandemic.
Some, such as Venture Corporation Ltd (SGX: V03), AEM Holdings Ltd (SGX: AWX) and iFAST Corporation Ltd (SGX: AIY), have even raised their dividends recently as their businesses boom.
Investors will be spoilt for choice as many of these companies offer yields of between 3% to 5%, handily beating the long-term inflation rate of around 2% to 3%.
Diversify and conquer
Even as you seek out suitable investment candidates, it’s important to remember to diversify your holdings.
In this uncertain world that we live in, any industry or company may come under pressure.
Being diversified means that you will not get hit too badly should something go wrong.
Another benefit of diversifying is that you get to enjoy the fruits of investing in multiple industries that show promise, allowing you to partake in the rewards many years down the road.
The best of both worlds
Enjoying both growth and dividends is within your grasp.
Buying US stocks for growth and Singapore ones for income provides you with the best of both worlds.
There’s no better time to take action and allocate capital to strong companies to grow your investment portfolio over the long-term.
As an investor, you might wonder what the future holds for the REITs in your portfolio. Or how to select REITs that can make you money as Singapore’s economy struggles to recover from the pandemic.
Download your FREE special REITs report: “How You Can Make Money Investing In REITs As Singapore Recovers” HERE!
Disclaimer: Royston Yang owns shares in Nike, Starbucks and iFAST Corporation Ltd.
