Sunday, October 23, 2016

Dividend or FIFO?

Dividend or Fast In Fast Out (FIFO)?

I started my first blog post in May 2016 and the strategy I used was Power of Dividend (Click here for my first post).

We are reaching end of 2016 soon, my total dividend collected in 2016 is $2,985.45.
I am not expecting to have any new dividend coming in for the rest of this year.
That work out to be $248.79/month of dividend.
My target is to achieve $2,000/month of dividend from 2037 onward.

Recently, I did a few FIFO and realize that this might be a faster strategy to increase my investment portfolio size compare to dividend (Of cos, I will need to put in more effort as compare to doing nothing and just collect dividend).

The most recent of my FIFO, which I have not blogged it yet, was added 1,000 shares of DBS at $14.89 on 17th Oct. 
Am happy to also see that my Frasers Cpt Limited is $700 in green now in 11 days.
But I am not selling it anytime soon as I am waiting for FCL Full year result release on 9th Nov where a potential dividend declare of $0.062 should push the stock price higher up even more.

The main point was it took me 1 year to receive close to $3000 as compare to FIFO where I am able to profit $800+ in 11 days. I could realize this profit and strengthen my portfolio amount to roll it into bigger amount faster. Of cause the flip side of the story can also be I paper loss $800+ in 11 days. But I don't think it will give me any issue as beside being able to FIFO, before I choose to add that particular stock, I will also consider the stock dividend payout if I am being force to hold long term if the stock price fell below my cost price as a safety net.

Rafflesian, an HWZ forum member, had been FIFO where his realized profit each time can range from 2 digits to 5 digits (All thanks to his huge capital he had) - Link
I am both envy & jealous at the same time.

So for now, I guess I will be more of a FIFO-er than a dividend-er.
However, ultimately, I should be a pure dividend-er when I started to retire in 2037 as I need to generate passive income and I need my money to auto work hard for me when I am sleeping. LOL!!

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