Dear readers, are you interested to earn $4,000 annual dividends for FREE?
Yes, $4,000 annual dividends, though these may not be a lot but it could still offset the high cost of living and inflation right now.
This needs a Wealth Plan and I will illustrate how this Wealth Plan works as below.
Assume you earn $5,000 a month and have saved an investment warchest of $100,000.
Say, in the eventuality of a Singapore stocks markets meltdown, the Straits Times Index (STI) plunged to 1,500 and you invest in the STI through the STI ETF.
When the stocks markets return to normalcy sometime later, say to 3,000 level, you will be profiting a cool 100% return $100,000 in capital profit, not counting the dividends that you earn throughout holding the STI ETF.
At this point, your investment would have doubled from $100,000 to $200,000 and assume you sell back the investment to reap back the $100,000 cost of your investment leaving the other $100,000 half still into the investment.
Taking an average 4% dividend yield, this $100,000 investment will give you $4,000 annual dividends at no capital cost to you (since you have earlier reaped back the $100,000 capital).
Hence, you are in effective, adopting a Zero Cost Averaging Strategy to earn these $4,000 annual dividends for FREE!