While many will say this is now not a good time to invest due to the ongoing banking and interest rate hike issues, I am of the opposite view. If I had $100,000 now and could restart my investing, I feel I could confidently create a 5% dividend portfoilo which has decent diversification across industries and regions.
A 5% Dividend Portfoilo with only 5 Companies
Which are the 5 companies I would choose? They are Alibaba (Div: 0%), YZJ Finance (Div: 4.6%), Keppel Pacific Oak (Div: 15%), ICBC (Div: 8%) & JP Morgan (Div: 2.8%)
JPM and ICBC were chosen because they are largest financial banks in their respective countries and seems to be the favoured child of the industry. Alibaba is a recovery play and a proxy to China's consumer sentiments. Kep Pac Oak for its exposure to the US Commercial real estate which I view is beaten down but the REIT has done its homework and lastly, YZJ Finance due to its exposure to both Singapore and China.
Allocating a 20% weightage to each of the 5 means I have a 6% dividend yielding portfoilo.
Breakdown
(i) Alibaba- USD $81 (No of units with $20,000 - 184 ADR Units)
(ii) YZJ Finance- SGD $0.385 (No of units with $20,000- 51,900 SGX shares)
(iii) Kep Pac Oak- USD $0.365 (No of units with $20,000- 40,800 SGX shares)
(iv) ICBC- HKD $4.2 ((No of units with $20,000- 28,000 HKSE shares)
(v) JP Morgan- USD $140 ((No of units with $20,000- 106 US units)
Let's see how this goes but I feel in the current investing environment, we are at the lows of a cycle and I am quietly confident, such a portfoilo will be able to generate at least a 5% dividend with a good chance in appreciating.
<Invested in Alibaba, YZJ Finance and Kep Pacific Oak as of writing>
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