Everyone should probably know by now that I did a podcast with my friends at Fifth Person two weeks ago.
What is my dividend yield on those shares today?
1. Passive income as much as earned income.
2. Peace of mind as investors.
Have a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
Everyone should probably know by now that I did a podcast with my friends at Fifth Person two weeks ago.
Posted by AK71 at 9:19 AM 12 comments
Labels:
ASSI,
passive income
Whenever I could find some free time, I would go out to sea in the last few days.
It is my latest hobby!
Well, in a sense, anyway.
Look at my latest ship!
Look at those cannons!
If you are interested in some naval warfare too, this is my latest free to play find.
Absolutely free to play and perfect if you feel like destroying stuff to feel better after a rough day.
Use my referral link for the Asian server and both of us will get some freebies in the game:
World of Warships. (AK's referral link.)
Anyway, now that the serious stuff is out of the way, let's look at other stuff.
In my last blog, I talked to myself about the bumper interim dividend from UOB.
Up by 40%, it made me giddy with joy!
I expect OCBC and DBS to pay higher dividends too.
This means they should at least match their dividends in the last quarter.
If nothing goes wrong, my passive income for Q3 2023 should be somewhat higher than for Q3 2022.
If this pans out, it would be quite a feat since 2Q 2022 passive income generated by my investment portfolio increased by an impressive 42% compared to 2Q 2021 (mostly because the banks were still paying lower dividends in 2Q 2021.)Whether passive income in Q3 2023 would be higher than Q2 2023 is less certain and, for that, I would wait and see.
On to another happy discovery.
When I checked my bank account, I found a few thousand dollars deposited by my old friend, AIMS APAC REIT (AA REIT.)
With my war chest largely depleted by IREIT Global's rights issue, getting some free money from AA REIT makes me love the REIT more.
As there will be quite a bit more dividend to be received from UOB and probably OCBC and DBS too next month, I decided to increase the quantum in my application for the upcoming 6 months T-bill with some of the money.
It is now open for application and the auction is happening on 3 August.
I will be going for non-competitive bid, as usual.
There is no need to agonize over a competitive bid since whatever the cut-off yield might be, it would most likely be higher than whatever interest rate the banks are offering for a 6 months fixed deposit.
So, the exercise to strengthen the fixed income component of my investment portfolio continues.
It gives my portfolio greater stability.
It gives me greater peace of mind to know that if I need more money, I have a T-bill ladder I can rely on.
This means I would not have to sell my stocks at prices not of my own choosing if some things should go terribly wrong in life.
Being forced to do something, not having control over our lives is not a good feeling.
With the yield curve still inverted, 6 months T-bills are going to remain rewarding.
So, they help to keep me sane and happy at the same time.
If AK can do it, so can you!
Related posts:
1. 2Q 2023 passive income.
2. 2Q 2022 passive income.
3. T-bill ladder is attractive.
Posted by AK71 at 6:11 PM 12 comments
Labels:
AIMS-AMP Capital Industrial REIT,
bonds,
DBS,
IREIT,
OCBC,
passive income,
UOB
During "Evening with AK and friends 2023", I said that UOB would continue to grow its earnings very strongly.
This is thanks in a large part to its acquisition of Citibank's consumer business in 4 South East Asian countries.
UOB has delivered and in terms of dividends, it has exceeded my expectation.
85 cents interim dividend per share has been declared.
Huat ah!
Source: UOB. |
Although I only started investing in UOB during the COVID-19 pandemic, it grew into one of my largest investments within a few weeks.
"When it's raining gold, reach for a bucket, not a thimble."Warren Buffett said this, not me.
Since then, I have been adding to my investment in UOB, most notably when the price of its common stock languished at around $26 a share for a while last year.
This enlarged investment in UOB is going to bring home a larger portion of bacon.
I remind myself that UOB retains 50% of its earnings which means that it is growing more valuable over time.
If the constant buying back of shares by UOB is anything to go by, this is probably going to be the case for some time to come.
Investing in UOB is not just investing for income, it is also investing for growth.
We can have our cake and eat it too.
If AK can do it, so can you!
Related post:
Banks: Even higher dividends?
Posted by AK71 at 4:04 PM 6 comments
Labels:
investment,
passive income,
UOB
While watching some YouTube videos regarding the economy, a video titled "Are All Singaporeans Rich?" popped up in the right sidebar.
I am usually not interested in videos like this but since I blogged about Singaporeans being obsessed with salaries not too long ago, I decided to give it a go.
Fortunately, the video had timestamps which allowed me to watch the segments I was more interested in.
It is interesting to see that the people interviewed in the streets of Singapore mostly agreed that everything was expensive in Singapore.
Most of them had earned income of $5K a month or more.
Personally, I think I can be quite comfortable with a salary of $5K a month today.
Apart from cars and private housing, I don't think Singapore is expensive.
Why do many Singaporeans think that a salary of $5K a month is insufficient?
Watching the video produced so many "Alamak, AK!" moments.
Someone said he would buy lattes regularly, paying $8 a cup!
Then, there is pubbing on weekends and taking taxis!
(OK, as a ComfortDelgro shareholder, I think taking taxis is a good idea. Please continue.)
Then, some talk about fine dining and how expensive wine is in Singapore!
Hey, we have choices.
If we overpay for coffee and if we choose to take taxis instead of buses and trains, of course, it would lead to a higher cost of living.
If we choose to get our nutrition in fancy restaurants, definitely, it would be costlier.
Such a lifestyle in any country would be more expensive than more humble alternatives in the same country.
Am I right to say that?
So easy to blame others for bad results even when it was our choices that led to those results.
Don't say Singapore is expensive when we make expensive choices.
Wake up.
A lady said that she had to work harder to earn more money.
I don't think that is a bad thing per se.
If she worked harder and put some of the money to work in order to generate passive income, her financial health can only improve over time.
If we do the right things, we don't have to worry too much about our financial future.
If I were 30 years old today and drew a salary of $5K a month, if I were truly prudent, I could probably save 50% of that money each month.
If I were to invest $2K per month in good income generating businesses, with a dividend yield of say 4% to 5%, I would be able to generate a few thousand dollars per year in passive income by the end of the third year.
Yes, it would take only 3 years to see meaningful results!
Over time, if we make more money, we could put more money to work if we stay financially prudent.
I remind myself that it is not how much money we make but how much money we save that will tell us if we are growing richer.
Then, be a pragmatic and patient investor for income and we can only become richer.
Not all Singaporeans are rich but all Singaporeans can be richer.
If AK can do it, so can you!
Related posts:
1. Why obsess with salaries?
2. Passive income as much as earned income?
Posted by AK71 at 9:48 PM 16 comments
Labels:
money management,
passive income,
Singapore
I don't think my application for excess rights would be fully filled.
So, I am waiting for some money to be refunded.
I have also received some money from a 6 months T-bill which has matured.
The next 6 months T-bill will see its auction happening on 20 July or next Thursday.
Instead of simply recycling money from the matured T-bill, I plan to increase the quantum by using some of the money I expect to be refunded from my application for excess rights.
Judging by the increased interest in non-competitive bidding in the last 6 months T-bill auction, it is possible that my non-competitive bids would only be partially filled in future auctions.
So, given this consideration, increasing the application quantum in future makes sense too.
With interest rates offered by the banks for 6 months fixed deposits having declined pretty significantly, it is only natural that interest in 6 months T-bills should pick up.
Adding exposure to 6 months T-bills while the front end of the yield curve remains elevated will generate relatively attractive passive income for me safely.
It would also help to strengthen the fixed income component of my portfolio which is something I have been doing for quite a while now.
The money in my T-bill ladder can also be deployed in the next significant stock market correction which might happen if the much talked about economic recession takes place.
Just talking to myself, as usual.
If AK can do it, so can you!
Recently published:
IREIT's rights issue oversubscribed.
(Read the comments section too.)
Posted by AK71 at 8:18 PM 24 comments
Labels:
bonds,
IREIT,
passive income
Posted by AK71 at 8:35 AM 14 comments
Labels:
passive income
This blog is just a bit longer than the video because I had a bit of problem with the voice recording.
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Posted by AK71 at 2:48 PM 17 comments
Labels:
money,
money management,
passive income,
wealth
This is the transcript of a YouTube video I produced recently.
-----------------------
In 2017, I published a rather controversial blog which shared the story of a couple who chose financial freedom over home ownership.
Posted by AK71 at 8:18 PM 9 comments
Labels:
passive income,
real estate
This is the transcript of a YouTube video I produced recently.
-----------------------
Q2 and Q3 are usually good quarters for me in terms of passive income.
Posted by AK71 at 6:05 PM 21 comments
Labels:
AIMS-AMP Capital Industrial REIT,
bonds,
IREIT,
passive income
Posted by AK71 at 9:48 AM 8 comments
Labels:
DBS,
investment,
OCBC,
passive income,
UOB