Dear readers, in this post, we will revisit the Simple Investing Strategy behind SG Stocks Investing. Actually, to be precise, it is to revisit the first half of the strategy which is to form the core of your investment portfolio in the Straits Times Index (“STI”) ETF. Let us revisit this strategy right now.
The STI ETF closed on the last trading day of year 2018 (31 Dec 2018) at $3.117. The STI ETF closed last week at $3.278 on 15 Nov 2019. Hence if an investor were to invest at the starting of Year 2019 in STI at $3.117 (in fact the STI ETF closed at $3.08 on 2 Jam 2019), he would have profited by approximately 5.2% in capital gain. And that is not all. The STI ETF paid a dividend of $0.056 per share in Feb 2019 and $0.064 per share in Aug 2019 which totals up to a dividend of $0.12 per share or approximately 3.85% dividend yield based on the entry price of $3.117.
5.2% capital gain and a 3.85% dividend yield added up to 9.05% total gain on the STI ETF! This is really not bad an investment considering that the STI ETF is a relatively defensive equity against the current backdrop of the more volatile trading environment for 2019!
What I have shared above is precisely the first half of SG Stocks Investing mantra (as you could see below the blog title): STABLE STI CORE, MULTI-BAGGED BY SELECTIVE INTERNATIONAL PICKS. If an investor were to form the core of his investment portfolio in STI ETF and has the remaining portion of his investment in selective international picks which are potential multi-baggers, then investment success would be achievable!
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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