Author: Dividend Warrior

The Power Of Compounding Dividends & A Mystery Counter Revealed

The Snowball Effect Over Last 5 YearsMy overall portfolio value as well as dividend stream has grown considerably since 2014. Besides injecting fresh capital, consistently re-investing my dividends has started to make an impact. Compounding growing dividends over long periods of time has been the cornerstone of my investing strategy. I believe this strategy is probably one of the best ‘wealth-creating machines’ on earth, especially for the ordinary man on the street. Tried and tested.     Top 10 Core Holdings Are you able to spot the mystery counter?...

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Returns On University Education

Going through the public education system is a rite-of-passage for most Singaporean children. The Singapore education system is highly-regarded world-wide on most measures. School fees are heavily subsidised from kindergarten to Junior College levels. It is generally considered worthwhile for students and parents to ‘invest’ time, effort and money into this glorious 20-year ‘paper chase’. However, the ROIC (Returns On Invested Capital) becomes trickier at the tertiary level. Is it still worthwhile pursuing that part-time degree at a private university like SIM? Many years ago, one of my friends got a degree from SIM after spending close to S$30k...

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Dividend Warrior’s Football ‘Portfolio’ Team (19/20 Season)

This post on my ‘portfolio’ soccer team was one of my most read posts last year. So, I decided to do another one :)This season, I shall be using the 4-3-3 formation. This formation offers the best flexibility in the current low interest rate, slow growth macro environment. The pace and movement of the veteran attackers, support of the fullbacks, and offensive midfielders will combine to overload the opponent’s defence with ‘Power of CD’. I believe this formation can be a massive success if you have the right players to play to its strengths. You can sit back in a...

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Dividend Warrior 1H2019 Portfolio Update – Best Quarter Ever!

Portfolio Cost: S$457, 975Portfolio Market Value: S$593, 943 (+39.2% year-on-year)Portfolio Overall Unrealized Profit: S$135, 968 (+29.7%)Portfolio YTD Unrealized Profit: S$68, 660 (+11.5%)Portfolio XIRR (including dividends): 14.63%Portfolio XIRR (2019): 48.71%Dividends Collected (1H2019): S$13, 410 (+11.6% year-on-year)Current Warchest: S$7, 800 Portfolio Actions in 2Q2019: Initiated positions in APAC Realty, Propnex Group, HRnet Group, F&N and UOB Took SCRIP dividends for OCBC Took SCRIP dividends for Raffles Medical Applied & allocated 1000 units for Frasers Centrepoint Trust’s preferential offering Singapore Market Becoming A Top Hub For REITs Global markets had quite a roller-coaster ride from May to June, right? It had been a...

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Common Mistake 1 – Obsessed Over Market-Timing

Many investors believe that timing the market gives better returns and reduces risk. I am afraid that’s not the case.If you are in your thirties, you can expect to live through roughly 10 more bear markets, big and small, at least. Are you really going to freak out, panic and go fully into cash every time? It makes no sense. Market timing doesn’t work over the long run. It just… doesn’t! Financial advisors and investment managers would try to convince you they don’t do market-timing, but they actually do. They ‘packaged’ their sales pitch in a different way, using...

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Learn From Mistakes Of Others

“By three methods may we learn wisdom. First, by reflection, which is noblest; Second, by imitation, which is easiest; and third, by experience, which is the most bitter” ~ Confucius All investors are hard-wired with human emotions. When we experience failure in our investments, usually it’s self-inflicted, which makes dealing with it objectively a daunting task. One of the best ways of speeding up our learning process is to examine and understand the blunders committed by others. This way, we increase our probability of avoiding similar setbacks. Fro example, one of my golden rules is to avoid S-Chips. After witnessing...

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Dividend Warrior’s 2nd Pot Of Gold Series – BTO Flat Downpayment

Yesterday, I attended an appointment at Toa Payoh HDB Hub and settled the downpayment for my HDB BTO flat using my CPF OA savings. I also paid the ‘Buyer’s Stamp Duty’ as well as conveyancing fees. This is another step closer to owning my first residential property on this lovely tropical island. My second pot of gold!  The entire process took roughly 15 to 20 minutes. Not much verification of documents involved. The important thing is to remember your HDB Portal and CPF log-in passwords and bring along your smartphone/OneKey token. You are required to log into the HDB...

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The Global Economy Will Adjust To The New US-China Economic Hostilities

The period of relative calm in the markets was rattled by an endless stream of provocative tweets from US president Trump as the US government ratcheted up the trade war and tech war against China. Oh boy! Did the global media have a field day on this latest development. Some of the headlines were more fear-inducing than horror movies. Droves of analysts, experts, economists, fund managers, talk-show hosts are talking about an impending recession in 2020. Or was it 2021? Sorry, these people keep changing their minds. Everything seemed rosy and bright between January and April, remember? Look, don’t...

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Hidden Danger Of Early FIRE

Time horizon is a critical factor in retirement planning. It is the duration you need your assets to work for you, usually spanning 20 to 30 years. Over that few decades of retirement, a person’s purchasing power can be seriously eroded by the inflation monster. Nobody wants to get to 80 and discover the money has run out. That’s not fun. Aged poverty is cruel, especially in Singapore where the costs of living is high and the medical fees even higher. One of the potential big mistakes early FIRE wannabes make is underestimating the effect of inflation. Sure, the...

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Get Your Fair Share Of The Economic Pie. Start Now!

Investing is really all about laying out cash now to get more back later. The earlier you start investing and the more you invest, the greater your money will compound over time. I do enjoy allocating my dividend cashflow. In fact, I have been rather active in deploying my funds in the current volatile market. It’s no secret that global wealth is concentrated in the hands of the elites, the top 1%. It’s time we claw some of that wealth back. [embedded content] When I first started dividend investing, my main objective was to achieve financial independence by building...

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Dividend Warrior’s Latest Buys – Accumulating ‘Middleman’ Businesses

Last month, I wrote an article on the ‘Middleman Economy’. Thanks to Trump’s tariff tweet, Mr Market gave me a chance to pick up some well-run ‘middleman’ businesses such as HRnet Group, APAC Realty & Propnex. Tens of thousands of property agents and recruitment agents slogging out there in the economy. I also initiated a small position in F&N. It has a 20% stake in Vinamilk, which has been growing well 2017-2018. Be greedy when others are fearful. Do your research, draw up a plan and follow the plan. No opportunity to add any quality REITs as all of them remained resilient...

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Notes from DBS AGM on 25 April 2019 – Achieved Broad-Based Growth in 2018

2018 Annual report of DBS & the electronic voting device Growth Drivers:The wealth management business grew 5 times and the cash management business expanded 8 times over the last decade. Both formed around one-third of the bank’s total income. Their growth rate is encouraging/important because they are considered ‘high-returns’ businesses, which are less capital-intensive. Achieved significant income growth from the Hong Kong & China markets. This shows that the acquisition of Dao Heng Bank years ago, has paid off. Prosperity of HK is closely tied to the fortunes of China. The CEPA between China & HK would benefit DBS in the long...

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