After checking out other Singaporean investors blogs, I decided to amend a little bit on my portfolio update starting this month. I think transactions are not vital for me to trace back. Instead, any remarks and important lessons I have learned during each of my investment months will be noted down, so my future self (and readers) can gain benefits of them.
Without further ado, here is my stock portfolio on 31 May 2019.
Gross Investment: RM87,809.18
Total Market Price: RM86,537.00
May 2019 Dividends: RM301.66
Total Dividends in 2019: RM1,025.80
Time flies, and I have surfed the investment wave for around 2 months. In order to trace back my investing mistakes and also see my portfolio grows over time, I committed to myself that I will update my portfolio every month in this blog.
Below shows all the transactions in my CDS account in April 2019:
When I was young, I love to play duckling fishing whenever my parents brought me to the fun fair. I love the anticipating feeling when we have no idea what rewards the duckling will give. It feels awesome when we get to pick the duckling with a number that gives great rewards, and quite disappointing when it does not have any rewards.
This is much related to our stock market now. Imagine that the small pool is Bursa Malaysia, and the ducklings are the stocks. The only difference between stock investing and duckling fishing is, we can study and analyze the probability that the duck will give us any reward at the end of the day.
Today I would like to share to you on how do I pick a stock to invest for dividends. By default, I always aim for the stocks which give at least 5% dividends. If it is less than 5%, I would rather put my money in a fixed deposit account during promotion, which guaranteed to return us at least 4% of interest.
Yet, only blindly aim for dividend yield is not a smart way of dividend investing. There are many companies that give lucrative dividends to lure innocent investors. Hence I compiled my 5 criteria which I used to determine if a stock is worth to invest for dividends.
p/s: I apply the same evaluations on blue-chip stocks and REITs.
Before I started my investment journey, I did my thorough research on which is the best brokerage firm for me to register a CDS account. Since I am working in Singapore, I need a brokerage firm with online registration that doesn't require me to physically go to the bank or office. Rakuten Trade is somehow fit all my requirements as a fully online brokerage account which can register via online. Moreover, it has a really competitive brokerage fee compared with other options.
About Rakuten Trade
Rakuten Trade is a joint venture between Malaysia’s leading independent investment bank Kenanga Investment Bank Berhad and Japan’s Rakuten Securities, Inc. part of Rakuten Group. Rakuten Trade joined the investment banking industry on 19th May 2017 as Malaysia's first digital equity broker. Less than a year later, they were named FinTech Company of the Year 2018 by the Malaysian Communications And Multimedia Commission (MCMC).
With Rakuten Trade, Malaysian investors no longer need to go through a dealer or to a bank to open an account. You can now open an account within two hours, top up available funds via normal instant online bank transfer and have access to real-time market price feeds. You will have all the comforts of a traditional broker except it’s completely online via Rakuten Trade website or iSPEED.my app.
Types of Accounts in Rakuten Trade
Rakuten Trade offers two types of accounts to trade on Bursa Malaysia: Cash Upfront and Contra.
I am so excited to start my dividend investing journey on 27 February. I opened my first ever brokerage account via Rakuten Trade because it allows online account opening and very competitive brokerage fee too!
Below shows all the transactions in my CDS account in March 2019: