Tuesday 14 November 2023

Creating a $100,000 Dividend Per Year Portfolio, Webull Reminder

Firstly a reminder for those who had signed up via my webull invitation link, there is a need to deposit at least SGD$1 into your webull account, keep it there for 30 days in order to be eligible for the US$100 gift. Based on my masked records, there are a few invitees who had opened an account but did not deposit at least $1, the deposit is essential to ensure you are on your way to getting the free gift. For those who have not signed up yet, the referral link is found at the bottom of this article and the promotion ends on 15 Nov, 1559hrs. So sign up by then to get it approved and then deposit.

The $100,000 Dividend Portfolio

I would say at current moment, building up a $100,000 dividend portfolio is the easiest in a decade. Firstly, in US, UK & Europe, interest rates are at an all time high; this translates to a expectations of higher returns in either dividends or future capital gains. As a result, in SGX, overseas REITs which carry a lower risk of balance sheet stress are at 11%-19% yields.

Secondly, due to the fear of a weakening Chinese economy and large scale slowdown in property, China stocks across all industries have been beaten down. The stronger and well run companies are now valued at 6-10% yields. For China's case, I am not talking just about REITs, but high dividends is seen across all industries from the defensive insurance industry (Ping An) to its 4 banking giants (ICBC, CCB, ABC, BOC) which are the largest in the world.

In 2018, yields from these 2 countries were much lower. Fast forward 2023, we are now seeing such yields and therefore building a portfolio for a $100,000 dividend with lesser capital avaliable is possible. Of course, investors have to assume the risk stated above for each sector.

Why It's a Struggle For Me

If readers notice, my actions now are to build up my dividends due to this trend. With the selldown in China Tech, I had earlier deployed capital to this sector in 2022 and as a result, I have less capital to build a dividend portfolio now.

My plan is to continue accumulating dividend stocks because they have been greatly sold down in the past few months, in addition to my large stake in Alibaba which will remain my core position. My target is a $100,000 dividends, hopefully markets remains depressed as I continue looking for stronger balance sheet companies with dividends.

Congratulations you made it to the end of the article. As a reward sign up as a new to Webull User, Fund $1, put it for 30 days and get US$100. Register only through this link; legitimate link which ends on 30 November 2023, 1559hrs.

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