What will I buy with $3000 (Jan 2016)?

Read more about First Stock Series.

On 7 Jan 2016, the China market suspended its stock market after a 7% drop in prices for the second time in a week. It was the government's way of stablising the market. The Singapore stock market also fell to a new low and closed at 2,729.91 points. Lots of guts is needed to buy when everyone is panic selling. What will happen tomorrow is anyone's guess.

1. Singapore Press Holdings* $3.76, 5.3% yield. Pros: Diversified investment strategy (property, retail, childcare) to mitigate risks of falling media revenue. Buy 800 units, and expect to get $160/year.

2. SPH REIT* $0.95, 5.7% yield. If you buy 3,000 units, you can expect to get $150/year. Pros: Rental from Paragon and Clementi Mall are expected to be stable.

3. DBS* $15.70, 3.8% yield. Pros: Banks are usually the first to rebound in market upturns. If you buy 200 units, opt for scrip dividend payouts to get about $120/year. Depending on the share price, scrip dividends round up anything more than 0.01, so you can easily get 1 unit free. Example, when the payout is $0.30 per share half yearly, 200 units x $0.30 = $60. If the share price is $16, $60/$16 = 3.75 units. DBS will pay you 4 units. Two payouts will give you 4 x 2 = 8 units. 8 x $16 = $128, which is more than $0.60 x 200 = $120 if you have opted for cash payout. What's more? You reinvest your dividends without paying commission fees to SGX and your broker!

4. Singtel* $3.46, 5% yield. Pros: Diversed recurring income from mobile subscription in Singapore, Australia, Indonesia, Philippines, Thailand, India and Africa. Stable income from government sector. Buy 800 units, and expect to get $134/year. Read a recent Stock Review.

5. AIMS AMP Capital REIT $1.33, 8.5% yield. Pros: Diversed industrial properties (business parks, light industrial buildings, warehouses) on rental with continual asset enhancement activities (i.e. rebuilding/renovating old buildings). Buy 2,200 units, and expect to get $249/year.


There you go! Google search, read the financial statements, before putting your money on any stocks.

The above is by no means a fail-proof recommendation to buy. Stock prices fluctuate and buyers need to be aware of the risks.

The writer owns stocks marked *.