Dear Smart Investor,
The Singapore stock market has just presented you with two gifts.
All you have to do is pay attention and focus on the right things.
Investors hesitate to take action for many reasons.
Most of all, it’s fear of the unknown.
What if you buy …
… and stock prices crash next month because of the Omicron variant?
What if you don’t buy …
… and stock prices keep rising, leaving you behind?
This fear is understandable.
After all, no one likes to see their hard-earned money disappear.
This fear is also crippling, causing you to hesitate before you put your money to work.
But there’s one thing that is different today that you need to consider …
… you should recognise that you are no longer operating without a playbook for the pandemic era.
You just need to know where to look for the right information.
2020: The Year of the Pandemic
Back in 2020, there were so many unknowns and events happening daily that struck fear into the hearts of even the most seasoned investors.
But here’s new information you will want to consider.
Having gone through this harrowing year …
… we have emerged with a clear understanding of the types of businesses that have done well and those that have not.
This is your first gift from the stock market.
There is no longer a need to guess or speculate how much a business will be impacted by the pandemic.
We have hard data on exactly how individual companies performed in 2020.
Below is a list of five Singapore blue-chip companies that have raised their dividends during the calendar year …
Source: Company announcements; annual reports; website. Wilmar’s 2020 dividend includes a special dividend.
This data is neither an estimate nor a guess.
So, if you are concerned about the impact of Omicron or the prospect of another lock down, this list of stocks will be a good place to start.
These businesses have proven themselves as resilient and are offering a dividend to boot.
2021: The Year of the Vaccine
If 2020 is the year of the pandemic, then 2021 is the year of the vaccine.
We are blessed to be in Singapore as the vaccine rollout has been swift.
Today, 96% of the eligible population has been inoculated against the virus.
2021 is also the year of economic recovery.
As businesses recover, Singapore’s blue chip stocks have started to reinstate their payouts.
This is your second gift from the stock market.
If 2020 showed us which companies were resilient, then 2021 showed us which companies were able to quickly recover.
Here are four Singapore blue-chip companies that recovered their dividend payouts during the first nine months of 2021 …
Source: Company announcements; website.
I’ll say it again: this data is neither an estimate nor a guess.
So, if you are wondering which companies have the propensity to recover from 2020’s downturn, here’s a list you can start with.
Get Smart: The gift that keeps giving
When it comes to your own money, there is no one who will care more about it other than yourself.
The two gifts above should put to rest any concerns over how businesses are impacted and whether they can recover.
This fear of investing due to uncertainty should, we hope, be put to rest.
The data above should put you in a prime position to make a judgement call on the group of stocks that are suitable for you.
Now, of course, not every company listed above may be ripe for investment.
You still need to put together a coherent portfolio that will create a cash-flow generating machine that marries the best of both worlds, the stability of income coming in every month that grows over time.
At The Smart Dividend Portfolio, our portfolio of 24 Singapore dividend stocks has already performed well, delivering a 27.2% during a time when the Straits Times Index (SGX: ^STI) declined by 2.2%, of the market close on 27 December 2021.
Meanwhile our accumulated dividends have increased by over three times between 2020 and 2021.
That said, we are not about to rest on our laurels.
Between January and March 2022, we will be using the two gifts that we have been presented to curate a portfolio that will grow and pay us for life.
In short, we are putting our money where our mouths are, and will be deploying another S$20,000 to work in 2022.
We have done the initial work for you. All you have to do is to follow along as we invest and learn about the best way to build a money-making portfolio for yourself.
Our most popular service, The Smart Dividend Portfolio, will go on sale from 5-9 January! Since we first started the service, we have helped over a thousand members master dividend investing and get closer to their goals. If you’re looking for more dividend stocks, then keep a lookout for our sale announcement. Meanwhile, download your FREE report “Top 9 Dividend Stocks for 2022 – and 3 Tactical Shifts to Maximise Your Profits” and see if you can find more stock ideas today!
Disclosure: Chin Hui Leong owns shares of SGX, Mapletree Logistics Trust, Keppel DC REIT, CapitaLand Integrated Commercial Trust,