The Trouble With Dividend Stocks



Don't get me wrong, I love my dividend stocks.

I mean, I love the passive income that comes from all the profit surplus that I inject into dividend stock investing, and in Singapore, not only dividends and capital gains are tax free (thank you Singapore) but the dividends are wired straight into my bank account (see my passive income reports)

This is passive income in its purest.

Of course, there are quite a few shortcomings:

  • It truly takes money to invest in dividend stocks to get the passive income. Personally, for me to be 100% on dividend passive income living, I'll need to have at least SGD$ 2 million invested, and based on an average 5% return per annum, that'd mean I'll get $100K per year. SGD$ 2 million is far away at this point in time, but it's doable over a period of say 20 years.

  • The yields range between 2.6% to 12%, the lower the yield the more stable but slower, and the higher the yield of course the fluctuation is higher, so it depends on your risk.

  • You will have to research the companies that you want to invest in, to ensure that they're defensive and safe and strong in the country and industry for a period of time; and keep updated but not that often (either monthly, quarterly, bi-annually or yearly)

A 5% yield from $100 is only $5, and that's insufficient no matter how I look at it. For dividend stocks investing, yes, it's a long term game for me, but that's also why we need to accelerate our income by first building passive income businesses that increases our income flow for investing and daily use.

Then we take the additional profit surplus and plow it into the dividend stock investing, so instead of investing a couple of thousand per year, we can invest $10K or more per year, accelerating the process.

No matter how I look at it, building an online business on the side is very important to not only have extra income to use or invest, you also learn more skills, and you then are protected from a 1-income-1-job situation, so whatever happens to your job, your side business will sustain and keep you going.

If you're a student, stay at home mum (SAHM), working full time or part time, or retired: you must build an online business on the side. Please don't quit your job yet, build it on the side until it's profitable enough to replace your salary, then you have more options.

It's not a luxury but truly a necessity for your future.

I've built multiple businesses (and lost multiple too) and I can tell you frankly that building a business on the internet is the cheapest/most cost-effective way to business. There are thousands of people who do so sharing on topics that they're passionate about (like how NigelChua.com shares on passive income and online business, which is my passion…for years now).

I know I am making some money online (see my income reports), and I know my financial future is getting better and better. But it is not easy, and takes a lot of time to learn and apply but I am building my passive income internet businesses that will work for me day in, day out; serving readers and customers profitably and delivering value 24/7.

To learn how I to make money online, join my mailing list and visit my resources page to see all the tools I use actively to build money making online businesses.



join the passive income family

Don't drown in the details - get the free fundamentals of passive income and early retirement and make your first $100 online.

Join the passive income family & newsletter below and get a bonus "Boring Blueprint To Passive Income & Early Retirement"

  • Learn how I started with less than $100 in my bank account from 2005-2008
  • ...turned my life and money around and by 2014
  • ...paid up my $390,000 flat in full in less than 5 years
  • ...starting making USD 40+ online per month
  • ...invested in dividend stocks for passive dividend income for recurring cashflow...for life!

You will also get subscriber-only Passive Income Tips, Starting & Growing Online Businesses Updates, Special Offers/Discounts and More - see you on the inside!

Talk soon!


Nigel

Please note that all fields followed by an asterisk must be filled in.

No spam ever - your email is never shared and you can unsubscribe anytime with one click.

Enjoyed this article? Share it with your friends by clicking one of the buttons:

Even better - share your thoughts and comments below:


Back To Top

Search In NigelChua

Current Projects

Nigel Chua

Nalco Group

Therapy Entrepreneurs

Xtend Health Asia

Wisdom Of Seneca

Bee Pollen For Health

#1 Recommended Online Business University And Platform

Solo Build It!

More than 95% of my online businesses and publishing works use the Solo Build It platform, for good reason. Find out here.



GetResponse Email Marketing

Building a relationship with your audience, customers and readers are highly important for any offline and online business, and I recommend GetResponse for their services, great price, ease-of-use.

Try GetResponse today (1st month free)

Bonus: learn how to use an email autoresponder



The Hoth

TheHoth can help to outsource your guest posting, article writing and backlinking marketing activities. Visit them here.



Google Suite

Google Suite (GSuite) is THE recommended Google tools for email, calendar, documents, sheets - for productivity  and communication.

GSuite/GMail one month free trial available here.



Shopify

Shopify has made it very easy to start an ecommerce business, solving most of the tech and logistical barriers and even has product suppliers with Oberlo!

Try Shopify today

Books I'm Reading

Holy Bible

Tribe Of Mentors

Seneca Letters From A Stoic

Seneca On The Shortness Of Life

See my full book/read list here.

Blogs I'm Following

Tim Ferriss

Pat Flynn

Tony Robbins

Ramit Sethi

Personal Goals

SGD 2,000,000 invested in dividend stocks with average 5% returns per annum by 45

SGD 2,000,000 in cryptocurrency

Owning, affording and living in a landed property in Singapore (or relocated to another country without worry of money) by 40

Publish at least one book by 40 years old

Online businesses serve readers and clients well (ie readers make more money, have happier/freer life etc), and website makes SGD 10,000 per month

Ongoing: spend more quality time with children, wife, family, bible, God.