Who is living on dividend & not working full time here?

I have been a retiree for 11 years living mainly on dividends. From my experience, one has to put at least 70% of your money on blue chips with regular dividend payout.
The other 30% for periodical thrills to punt on news and guts feeling when market is red hot. With regular payout comes capital appreciation. Look at the banking, oil, shipyard and property counters and you will appreciate what I am saying. Almost all retirees cannot afford to lose! So they have to go for the long haul on blue chips for regular income. If they can live on $2000 a month, $500,000 would suffice with annuity to supplement. Capital appreciation would also mean there will be future growth in their income. Just to share my experience with those considering to retire.
I started in the 1980 when there was no REITs. Therefore I keep my purchases to proven stocks mainly Hong Leong Fin, OCBC, DBS(sold too early), UOB(sold too early), SPC(sold recently), Capitaland(sold), Keppel Land and Keppel corp (both sold too early), F&N (sold recently), Sembawang (sold recently), SGX (sold too early). I do not own them all at the same time. During the 20 odd years, these are the stocks I bought and sold at one time or the other. I am more convinced to land with rock solid counters because of my unpleasant experience with Tat Lee Bank, Clob shares and CAO. Retirees should be reminded that making $2 with a dollar is not without risk. Unless you can afford to lose, please don't try.
Keep to those blue chips you are familiar with. Don't buy those you know vaguely or recommended by friends or "Gurus" unless you do a little reading up on these counters yourself. Otherwise, it will affect your confidence level when there is a market shakeup and cause you to take inappropriate action. Know your stocks well and also know the general trend of the market are the key ingredients of the game. However, no one is spared when there is meltdown no matter how cautious one is. It is only by degree how one is affected. The only consolation is that blue chips continue to provide you with regular dividends to live on and the hope of recovery when the cycle comes.

By: sbyeo



Thank you for sharing.... so....with $500,000, invest 70% ($350,000) with dividend return of 6% to 9% earn $21,000 to $27,000 per year.... not bad !