How You Can Compound Your Dividends to Secure a Happy Retirement

The Smart Investor01-11

[ Share Facebook Twitter LinkedIn Email WhatsApp Everybody longs for a blissful retirement after working hard for decades. Investing your money in stocks is an effective way of achieving...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2402845484?lang=en_US&edition=fundamental","thumbnail":"https://thesmartinvestor.com.sg/wp-content/uploads/2024/01/retirement-picture-300x200.png","is_english":true,"pubTime":"2024-01-11 07:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2402845484","market":"sg","top_or_hot":-1,"title":"How You Can Compound Your Dividends to Secure a Happy Retirement","media":"The Smart Investor","content":"<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nEverybody longs for a blissful retirement after working hard for decades.\nInvesting your money in stocks is an effective way of achieving...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/how-you-can-compound-your-dividends-to-secure-a-happy-retirement/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How You Can Compound Your Dividends to Secure a Happy Retirement</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow You Can Compound Your Dividends to Secure a Happy Retirement\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-11 07:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/how-you-can-compound-your-dividends-to-secure-a-happy-retirement/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nEverybody longs for a blissful retirement after working hard for decades.\nInvesting your money in stocks is an effective way of achieving...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/how-you-can-compound-your-dividends-to-secure-a-happy-retirement/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0572940350.SGD","symbol_name":"Janus Henderson Horizon Asian Dividend Income A3 SGD","start_time":0,"source_url":"https://thesmartinvestor.com.sg/how-you-can-compound-your-dividends-to-secure-a-happy-retirement/","article_id":"2402845484","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2024/01/retirement-picture-300x200.png"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2402845484","pubTimestamp":1704929400,"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Receiving dividends and compounding them is a surefire method you can use to achieve a blissful retirement.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","M44U.SI":"丰树物流信托","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","BK6033":"金融交易所和数据","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","BK6523":"ESG概念","CFA.SI":"NikkoAM-STC Asia REIT","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","BK6082":"工业房地产投资信托","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","SG9999002604.SGD":"LionGlobal Singapore/Malaysia SGD","SG9999005177.SGD":"Legg Mason Martin Currie - Southeast Asia Trust A Acc SGD","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","SG9999001689.USD":"施罗德亚洲成长股票","S68.SI":"新加坡交易所","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","FSTAS.SI":"富时海峡全股指数","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","FSTM.SI":"富时海峡中盘指数","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","LU0251143029.SGD":"Fidelity ASEAN A-SGD","LU0048573645.USD":"富达东盟基金","LU0384037296.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AT\" (USD) ACC","LU0084288322.USD":"Natixis Asia Equity RD USD","STI.SI":"富时新加坡海峡指数","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC","D05.SI":"星展集团控股","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU0955669360.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD","LU0821914370.USD":"贝莱德亚洲成长领袖A2","O39.SI":"华侨银行","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0181495838.USD":"施罗德新兴亚洲A Acc","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","BK6512":"房地产股","ES3.SI":"STI ETF","BK6112":"综合性银行","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","BK6133":"工业房地产信托","SG9999002406.SGD":"利安新加坡信托基金","C2PU.SI":"百汇生命产业信托","BK6134":"医疗保健房地产信托","SG9999002620.SGD":"LionGlobal South East Asia SGD"},"translate_title":"如何复利分红以确保退休快乐","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"C2PU.SI":1,"D05.SI":1,"M44U.SI":1,"O39.SI":1,"S68.SI":1,"CFA.SI":0.89,"STI.SI":0.6,"ES3.SI":0.6,"FSTAS.SI":0.6,"FSTM.SI":0.6},"content_text":"[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nEverybody longs for a blissful retirement after working hard for decades.\nInvesting your money in stocks is an effective way of achieving the dream retirement you seek.\nNot just any stocks, though.\nWe are talking about those that pay out steady and consistent dividends.\nThese dividends will form the bedrock of your stream of passive income as you enjoy your golden years.\nThe key to building and growing these dividends is in one magical word – compounding.\nRead on to find out how compounding your money in dividend stocks can help you secure a comfortable retirement.\nBuilding your portfolio’s foundation\nAs you embark on your journey as an income investor, you may be wondering how to go about building a dividends portfolio.\nFirst off, ensure that you set aside at least six months of expenses as an emergency fund.\nThis money should help to tide over any emergencies and should not be used for investments.\nSecond, money that you need to use for big-ticket items in the next five years should also not be invested in stocks.\nSome examples could be buying a house, using the money for a wedding, buying a car, or planning for a child.\nOnce you have set aside this sum of money, any excess can be used as your opportunity fund, which represents the money you can use to purchase dividend stocks.\nYou can start by purchasing stocks to form the initial foundation of your portfolio and then slowly grow the portfolio over time by adding more capital.\nSelecting the right stocks\nYour next question might be – which stocks should I purchase for my portfolio?\nWe are glad you asked.\nSelecting the right stocks is important because you want to own these stocks over years, if not decades, to help you generate rising dividends that can form your passive income source and help you beat inflation.\nBlue-chip stocks are a good starting base for your dividend-paying portfolio.\nThe local banks DBS Group (SGX: D05) and OCBC Ltd (SGX: O39) pay out reliable dividends and boast a long track record of operating through good times and bad.\nStock exchange operator Singapore Exchange Limited (SGX: S68), or SGX, is another stalwart that has paid out quarterly dividends for many years.\nDBS Group recently upped its quarterly dividend from S$0.36 to S$0.48 for its third quarter of 2023 while OCBC increased its 2023 interim dividend from S0.28 to S$0.40.\nSGX recently increased its quarterly dividend from S$0.08 to S$0.085 on the back of a strong set of earnings for fiscal 2023.\nThe REIT sector is another reliable asset class where you can source for dividend-paying stocks.\nWell-managed REITs such as Mapletree Logistics Trust (SGX: M44U) and Parkway Life REIT (SGX: C2PU) have doled out distributions over many years.\nEven though 2023 was a tough year for REITs, both REITs still managed to grow their distributions on a year-on-year basis.\nReinvesting your dividends\nOnce you have picked several dividend-paying stocks to start your portfolio, you can regularly allocate more capital to purchase more stocks over time.\nAs time passes, not only will your portfolio of stocks grow, but so will the dividends you receive.\nIt may start as just a trickle, but as you invest more money into dividend-paying REITs and blue-chip stocks, it will eventually turn into a gush.\nWhat’s more, with the dividends you receive, you can reinvest them by purchasing even more shares and units of blue-chip stocks and REITs.\nCompounding works its magic\nThis process of reinvesting your dividends is known as “compounding”.\nCompounding may be a slow and steady process but it is a powerful one.\nOver time, as you allocate more money to dividend-paying stocks and reinvest these dividends to buy even more stocks, you help to compound your portfolio into a robust one that can help you sail through your retirement.\nNot only will the value of your portfolio grow along with the business growth of the stocks within it, but your flow of dividend income will also increase by leaps and bounds.\nGet Smart: Time is your friend\nThe main prerequisite for compounding to work is – time.\nYou need patience to achieve effective compounding and need to exercise discipline in repeating the same process over years or even decades.\nThe rewards are well worth the wait.\nIf you can consistently compound your dividends into solid, growing stocks, you will end up with a portfolio you can not only be proud of but can also deliver healthy passive income for your retirement years.\nWe’ve discovered 5 SGX stocks that not only offer better returns than fixed deposits but also have the potential to beat inflation. Plus, these stocks provide capital growth and can significantly compound your wealth in the long term. If you’re looking to make your money work harder for you, download our FREE report for details on these five stocks. \nFollow us on Facebook and Telegram for the latest investing news and analyses!\nDisclosure: Royston Yang owns shares of DBS Group and Singapore Exchange Limited.\n\n\n\nYahoo\n]","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2402845484"}