straits times index stocks undervalued

AKIN TO HOLDING SINGTEL STOCK BUT WITH CAPITAL PRESERVED … WHAT IS THIS PRODUCT?

Dear readers, how have you been? I think for many of us working, this week is a relatively short working week given that we just have had a long weekends earlier this week. So I think many of us employees should be quite happy this week.

Ok, back to today’s post. For today’s post, let me talk about a product that is akin to holding Singtel stock but with capital preserved.

Yes, that’s right, with capital preserved.

Talk to many investors who bought and hold Singtel stock and I believe among the oft-cited reason for holding Singtel stock is the consistent dividends that the stock pays over the years.

I recall some years back, Singtel stock pays a good dividend of some 4%. As at last trading week, the 12-month dividend yield of Singtel stock is 2.5%. So clearly, the dividend yield of Singtel stock has clearly become reduced over the years. Not to mention capital appreciation, depending on where investors entered into Singtel stock, investors may be looking at profit or non-profits.

So what if I tell you of a product that pays roughly the same dividend as Singtel stock. At specifically 2.53% average return per annum for ten years and with no risk to capital (that’s right capital preserved). This product is none other than the latest Jun 22 Singapore Savings bonds.

Yes, that’s right, the upcoming latest Singapore Savings bonds has seen the average 10-year return back up to a very decent level since a number of years ago. I think the Jun 22 Singapore Savings Bonds will appeal to investors who do not like to park their monies in banks to be eroded by high current inflation rates and who do not want to invest their monies in this current volatile stock environment. The Jun 22 Singapore Savings Bonds will also appeal to investors looking to park their monies to earn some decent returns while waiting for the next opportunity in the next stock markets corrections to invest.

That’s it for my insights today.  I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!


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