Whenever you mention income investing (or dividend investing) to certain investors, they may reply with one of many possible responses:

“Dividends? I’m only earning 2-3% a year. That’s too low.”

“If I’m earning a 3% dividend yield, I’ll need a large investment for my dividends to be worthwhile.”

“I can make higher returns investing in growth stocks.”

Do these sound familiar to you? Income investing is often viewed as a ‘slow and steady’ way to invest. If you look at the Straits Times Index, a basket of the 30 largest companies in Singapore, its dividend yield is only 3.60% (as at 28 February 2019). It’s a similar story in Malaysia and the U.S. – the FTSE Bursa Malaysia KLCI currently yields 3.18% and the S&P 500 yields 1.99%. All of that sounds a little unsexy considering that the FAANG Stocks have gone on to dominate the stock market over