Two Solid Reasons To Own Singapore Stocks

Posted by on

US investors looking to gain exposure to Asian equities should consider investing in Singapore. Unlike its neighbor Malaysia, the country is a well developed with a GDP per capita comparable to wealthy developed countries. Though China is a major trading partner, Singapore is diversified in terms of exports and imports with other major countries including the U.S.

For American investors Singapore is an excellent destination to find investment opportunities. Two of the reasons for investing in Singapore stocks are listed below:

1.Singapore stocks have the second highest dividend yield among Asian countries as shown in the following graph:

Click to enlarge

Singapore Dividend Yield vs Asian Countries

Source: Nikko AM Singapore Dividend Equity Fund: Our First ASEAN CIS Passport Fund On Board! by  Lee Tien Xiang, Nikko AM

Only Australia offers higher dividend yields than Singapore in Asia. In addition, the market has gained a cumulative total return of 27.6 % over the past 5 years as of April 1st this year.

2.Singapore is one the few developed countries that charges no withholding taxes on dividends paid to foreign investors. Hence investors will receive the full dividend amounts paid by Singapore corporations.

Five Singapore stocks are noted below with their current dividend yields for further research:

1.Company: DBS Group Holdings Ltd (DBSDY)
Current Dividend Yield: 3.77%
Sector: Banking

2.Company: United Overseas Bank Ltd (UOVEY)
Current Dividend Yield: 3.66%
Sector: Banking

3.Company: Singapore Telecom (SGAPY)
Current Dividend Yield: 5.57%
Sector: Telecom

4. Company:Keppel Corp (KPELY)
Current Dividend Yield: 6.24%
Sector:  Industrial Conglomerate

5.Company: Singapore Airlines Limited (SINGY)
Current Dividend Yield: 2.40%
Sector: Airlines

Note: Dividend yields noted above are as of June 29, 2016. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: No Positions

An Example of a Multibagger Stock

Posted by on

A multibagger is a stock that multiples many times over. An investor in a multibagger will reap a huge return of their original investment as opposed to say simply doubling the money.

One example of a multibagger is Continental Aktiengesellschaft (CTTAY) of Germany. Here is a brief intro about the company:

Today, Continental ranks among the top 5 automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also a competent partner in networked automobile communication.

Source: Corporate Site

Continental’s ADR soared from under $3.00 in Feb, 2009 to over $45.00 recently.That amounts to a multibagger-type return of 15 times the original price.The ADR had a 5 for 1 split in 2013.

Click to enlarge

CTTAY-10 Year Returns

Note: Chart shown above is based on closing prices a few a days ago

Source: Yahoo Finance

Disclosure: Long CTTAY

Knowledge is Power: Helicopter Money, Dividends, Indexing Edition

Posted by on

Topic: Dividends

Earlier:

University of Oxford, UK Museum

University of Oxford, UK – Museum

The Highest Railway Line in the World: Qinghai-Tibet Railway

Posted by on

The Qinghai-Tibet Railway is the world’s highest railway line in the world. At its highest point it is 5,072 meters (or 16,640 feet) above sea level.The railway line was opened 10 years ago this month and is 1,956 kilometers (or 1,215 miles) long connecting Xining, the capital of Northwest China’s Qinghai province, to Lhasa, capital of Southwest China’s Tibet autonomous region.

The highest railway station in the world is also located on this railway line. The Tanggula Railway Station on the railway line is at an altitude of 5,068 meters (or 16,627 feet).

Click to enlarge

Train in Lhasa Tibet

Train in Lhasa Tibet

Cuona Lake Train

Train passing Cuona Lake, Tibet

Source: Travelling on the Qinghai-Tibet railway, China Daily

Also see:

Which Countries Are Best For Life After Retirement?

Posted by on

Paris-based Natixis Global Asset Management recently published its 2016 Natixis Global Retirement Index report. This report contains the rankings for Global Retirement Index(GRI) based a study of 43 countries including the BRICS.

The Top 25 countries based on the GRI are shown below:

Click to enlarge

Top 25 Countries for Retirement

Source: 2016 Natixis Global Retirement Index, Natixis

Of the top 25 countries 17 are from Europe. This is not surprising as socialist European countries spend heavily on social welfare of the society.

The Top Three countries are Norway, Switzerland and Iceland. The US ranks 14th in this list. Some of the reasons for the low scores for the US include high levels of public debt, increasing tax burden , etc. The report also notes that though the country ranks 5th in per capita income globally, it ranks among the lowest in income equality (37th).

Download the full report: