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Wednesday, October 8, 2014

Go for Growth, Dividends or Capital Gains

After a series of bad investment choices this year, i got myself thinking about my own portfolio restructuring

As there are many opportunities in certain periods, it is always good to have certain stocks that are able to ride through the storm to provide us with growth and dividends in cash or shares. 

Growth stocks
As a beginner in stocks, i am always keen to learn from different people about their investing perspectives. One of it was to invest in Singapore banks like UOB, OCBC and DBS. These 3 stocks have good growth and will constantly distribute dividends yearly. 

I begin looking at higher value stocks like Jardine Cycle and Carriage because someone told me that a person who buys the stock knows about investing. Initially, i did not know why people choose this stock. Out of curiosity, I went to check out their business and ask around. I managed get answers that are able to justify the good value of this stock. Jardine C&C distributes Mercedes Benz, one of the premier luxury brands of car in Singapore, Malaysia and Myanmar. Apart from Mercedes, the group also distributes other brands. Their business consists of car distribution and maintenance. The maintenance portion of their businesses are recurring in nature, and thus able to provide a constant flow of income. 

Dividend stocks
Dividend plays are good as well because they provide you with good cash flow to reinvest and expand your portfolio. A person who played dividend stocks well is Dividend Warrior. He adhered to a patient strategy for good dividend yield stocks which seemed to be going well comfortably.

Capital Gains
Since SGX cap the lot size to a 1000 shares, penny stocks are one of the apple for investors looking for short term capital gains. In order for this to work, you have to correctly predict the the ups and downs of the stock.

Conclusion
My personal opinion would be to go for both growth and dividend stocks to ensure constant earnings over a longer period. The capital gains method would require constant monitoring and technical analysis to improve your prediction. 


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