Saturday, February 9, 2013

Trading to Investing in 2013

2013 will be a different year for me, in terms of my market strategy.

I have been an active trader in the Singapore market, trying to make money from price movements. Like most people, I have gained trading experience the hard way losing money. I also took courses in Technical Analysis (though I did not follow the rules strictly). Now I am still learning.

Recently, I read a blog by "Dividend Warrior" (http://dividendsrichwarrior.blogspot.sg/) and was greatly inspired by his strategy in dividend investing. I have thought of similar ideas before, but have never seriously implemented them until now. I have always prefer to make stable passive income, rather than a huge sum of money inconsistenly.

The idea is simple. Search for stable dividend-giving companies with high and consistent yield to build a portfolio that will generate paasive income every month. My goal is to achieve a monthly passive income of $2.5-3K for retirement I project that I will require a invested capital of about $500K.(assuming a constant yield of 6%)

The counters for consideration include telcos (StarHub, SingTel, M1), SPH, REITs and Trust funds. After some strategizing and fine tuning, I finally settled for 4 counters for my 1st investment: Sabana REIT, CitySpring, Global Premium Hotels and UMS Holdings. What prevented me from choosing the telco counters was the low yield based on the current price which is quite high.

With quarterly dividend payouts, I will be getting dividends in most months in 2013:

Feb: Sabana REIT
Mar: CitySpring
Apr: GP Hotels
May: Sabana REIT, CitySpring, UMS
Aug: Sabana REIT, CitySpring
Oct: UMS
Nov: Sabana REIT, CitySpring
Dec: UMS

Stock
Avg Price
Last
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Yield YTD
SABANA SHARI'AH COMPLIANT REIT
1.165
1.225
 
0.0241
 
 
 
 
 
 
 
 
 
 
2.07%
CITYSPRING INFRASTRUCT TRUST
0.445
0.455
 
 
0.0082
 
 
 
 
 
 
 
 
 
1.84%
GLOBAL PREMIUM HOTELS LIMITED
0.27
0.275
 
 
 
0.0101
 
 
 
 
 
 
 
 
3.74%
UMS HOLDINGS LIMITED
0.4575
0.46
 
 
 
 
 
 
 
 
 
 
 
 
0.00%

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