What is better than earning a capital gain on an investment? Stocks that pay you to wait for that gain.
SINGTEL is one example of a stock that is currently paying a relatively handsome "waiting fee".
If you had caught Singtel in early January, you are potentially holding a stock yielding 6.12% on your invested capital based on a $0.175 per share dividend payout.
If you hold the stock for a single dividend cycle, at current share price ($3.15), you would have made about 9% capital gains + 6% yield for a total return of over 15% .
Not bad at all.
A similar story may be observed with KepCorp.
If you had caught KepCorp in early January, you are potentially
holding a stock yielding 4.3% on your invested capital based on a
$0.25 per share dividend payout.
If you hold the stock for a single dividend cycle, at current share price ($6.6), you would have made
about 13% capital gains + 4.3% yield for a total return of over 17.3%.
Singtel has pledged to maintain the current dividend payout until 2020, whereas Keppel Corp pays out a very sustainable 40-50% of earnings.
If you are wrong, and the stock price languishes in the current range, then at least you are getting paid to hold the stock, while waiting for improvements to investor sentiment/earnings performance.
If you are right, then you could potentially reap a double digit return, based on the capital gain and the dividends received.
The above are just examples of utilizing a growth + dividend strategy. Of course, not all companies are suitable for implementing such a strategy. Ideally, one should shortlist companies with strong balance sheets, free cash flow, and which exhibit potential to grow earnings on a long term basis.
Vested in both companies. DYODD.
Onward to FI!