HOW TO PICK A DIVIDEND STOCK?

Choosing dividend stocks is not a bad idea at all as it provides passive income for anyone from all walks of life. But which stocks do we choose?

Personally I feel banks stocks are safe but the 3 big banks prices are relatively high. You can buy a minimum of 100 shares if you are on a tight budget. Another alternative is to buy ETF such as STI ETF or Nikko AM STI ETF. Both gives good dividends at different months. In that way, you can spread your monthly collections within 1 year.

What do we look out for? If you pick bank stocks, eg. DBS, you can see at the bottom which indicates dividends snd dividend yield and compare with other banks like UOB or OCBC and decide on which bank pays a bettr dividend yield.

Alternatively, you can google best dividends stocks in Singapore. After googling and deciding some stocks, I go to SGX App and check those stocks corporate actions to see the amount paid and the frequency of payout. Then i total up the dividends in 1 year. From there i do the calculations of DBS, UOB, OCBC paid in a year. In that way, i can decide how much money to buy for the particular stocks.

For those who choose reits, the prices are a range. What I do is to multiply the amount. For example, if you look at Parkway Reits or Frasers Reits or Keppel reits, then do yr calculations to make the value of the same to calculate the dividend payout.  At SGX, total up the amount of dividend paid per stock. In that way, we can get a good gauge of the same value in terms of dividend payout.

Always remember, invest wisely, invest within your budget and set aside 20-30% cash flow for emergency.

NEVER LET GREED CONTROL YOU. BE CONTENTED WITH SMALL PROFITS.

Happy Investing :)