My perspective of a $20k blue chip stocks for retail investor. Below are a list of stocks that would construct a retail investor portfolio.
- STI ETF ($3.38)
- M1 ($3.25)
4000 shares x STI ETF = $13,520
2000 shares of M1 = $6500
Total cost is = $20,020
STI ETF provides excellent diversification in the event of a single sector crash. Its top 5 holdings include 3 relatively strong Singapore banks namely DBS, OCBC and UOB.
Source: Bloomberg
Current Dividend Yield 2.75%
Over a 10 year period, the STI ETF provided a return of 9.06% including dividends and 5.89% excluding dividends
Source: STI ETF Annual Report
M1's recent drop in price due to news of a fourth telco had became an attractive buy with a dividend yield of 5.83%.
Source: Bloomberg
Its recent first quarter financial statements, M1 slashed off 16% of its debt. Lesser company debts keep M1's balance sheet healthy.
19 Jun 15, chairman of M1 bought 50,000 shares at $3.23 each. This could be an indication of a slightly undervalued share value.
