$500 dividends per month

$500 dividends per month - Redpanda

$500 dividends per month

Hello, am here to seek some opinions. For context im 32M looking to get some dividends income to better diversify my portfolio. I have in general settled my high risk investments (or at least am happy with current investment amts) And am looking for a more stable fixed income / dividends / low risk investments. The goal here is whether i am able to earn on avg $500 in dividends. Plan is to start accumulating over time (dca) singapore stocks that pays dividends. And for the first year re-invest my dividends earnings. 1. which platform do u recommend? 2. is there any flaw in this plan? 3. do u recommend funds over purchasing the stocks by itself? E.g UOBAM vs UOB stocks itself 4. any current stocks u recommend and is now a good time to buy in? (Just trying to time the market a little so outlook is better, also why i’m looking to dca)

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You should re-examine whether this goal makes sense for you or not. For most people your age, it does not, and the passive income is just a left pocket right pocket exercise, since issuing of dividends causes the stock price to fall. And you have enough income to cover your expenses anyway, so either you re-invest the extra money (good) or you're tempted to spend the passive income (bad). Unless you're in a situation where you temporarily have extra expenses you struggle to cover, or temporarily have low/no income (e.g. doing Masters degree full-time), what's the passive income really for? If you are talking about diversification, then sure, you can go for some SG stocks or lower risk instruments like bond funds. But the issuing of dividends is not free money, you know? Lower risk compound growth is just as good if not better, as there must be costs associated with the company/fund disbursing the dividends and you re-investing them. In other countries where there's hefty capital gains tax, there could be some advantages to chasing dividend stocks. But in Singapore, not really. You can always sell to create "income" when needed. Look at total returns, and don't separate dividends from capital appreciation.

Precisely because it does not, hence i felt it worth to look into it. Having additional cash is almost always a good thing. Having stocks like TSLA or AMD etc etc is almost always subjected to market volatility. U can be a millionaire one day and a beggar the next. Hence why im exploring into dividends now. The extra cash can be used for MANY things including re-investing into other stocks and markets. Heck even using it to pay income tax also shiok lo🤣 $500 monthly tho it does not compound, really does alleviate financial stresses in singapore.

how much capital you have? how much are you making? how much are your expenses? STI dividend is about 3% p.a. on average for the past 5 years. assuming that rate doesn't fall, you'll need 3/100*12*500=200k higher risk dividend stocks yield are around 5-6%? so you'll need at least 100+k to even be remotely close to your target without all the numbers how to advise if your plan is possible?

Yes thats the rough initial capital that i have calculated too. The reason why i didnt state the initial capital is because i don’t have any set aside as of now. Essentially starting from 0. So realistically to reach my goal in an estimate of 3 years, its gonna be 200k / 3 / 12 = 5.6k roughly dca per month. At this rate would it not be better if just use UOB one account?

No? Uob one is half the interest rate and might fall further.

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$500 dividends per month