Investing For Retirement
Many hardworking employees have worked hard on their job but often forget to grow their own money.
Based on Singapore REIT's dividend yield, investors can easily get 5% or more. So this means that if you invest SGD1mil into REITs, you will get an annual passive income of SGD50,000.
But to achieve that SGD1mil capital, we need to invest to grow our small capital to SGD1mil.
Most investment textbook advocates to invest into quality stocks that have low price earnings ratio, low price to book & pays dividend.
- But most investors neglect the aspect of a quality stock. They just buy into stocks that have low PE and low PB.
- According to Warren Buffett, one strong indicator of “high quality” in describing a business is having predictable and proven earnings.
- So this means we need to invest into stocks that have predictable and proven earnings, at the same time price earnings ratio
& price to book ratio are low and pays dividend.
One such example is UOB stock which I have invested myself. UOB has generally predictable earnings trend in the long run.
When the price is right, it can pay 4%+ dividend. There are several occasions whereby price to book is at or lower than 1 times. There are several times whereby PE is less than 10x. That will be the time to buy.
Based on Singapore REIT's dividend yield, investors can easily get 5% or more. So this means that if you invest SGD1mil into REITs, you will get an annual passive income of SGD50,000.
But to achieve that SGD1mil capital, we need to invest to grow our small capital to SGD1mil.
Most investment textbook advocates to invest into quality stocks that have low price earnings ratio, low price to book & pays dividend.
- But most investors neglect the aspect of a quality stock. They just buy into stocks that have low PE and low PB.
- According to Warren Buffett, one strong indicator of “high quality” in describing a business is having predictable and proven earnings.
- So this means we need to invest into stocks that have predictable and proven earnings, at the same time price earnings ratio
& price to book ratio are low and pays dividend.
One such example is UOB stock which I have invested myself. UOB has generally predictable earnings trend in the long run.
When the price is right, it can pay 4%+ dividend. There are several occasions whereby price to book is at or lower than 1 times. There are several times whereby PE is less than 10x. That will be the time to buy.
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