Hi all, recently started out on investing with a small capital of $5k. But since I’m gonna start working soon, there will be a steady stream of income, a portion of which I intend to continue invest.
I know that many ppl will advise against holding individual stocks as one starts investing but well, here’s my positions so far: CRSP, PG, JD, M44U (M44U is a Singapore REIT, and dividends paid out of SG REIT is tax exempt, so yeah)
I have recently began exploring the idea of a dividend portfolio, and tbh it’s quite appealing. Getting a steady stream of income every quarter/month sounds rly great. So I did some calculations, assume average dividend yield of 4%, in order to achieve dividend income of $12k a year, I need to have $300k invested, which is an insane amount. Of course, generally we are probably looking at dividend kings and aristocrats, so the amount is more or less guaranteed with low risk.
On the other hand, investing in individual stocks can probably quite easily beat 4% return, albeit at a higher risk.
So I guess I just want some opinions on this? Whether dividend portfolio is worth building and if so, what should I watch out for and take note of in this process? Thanks a lot!
Submitted July 22, 2018 at 10:41AM by theinverse_ https://ift.tt/2uFZGg8
