My long term target being able to get a sizeable portion of income comparable to my annual salary. I planned to engage approximately 50% of my savings of approx 80k in equities... I have currently about 25k in equities, which means I have another 15k to engage in equity investment. Thus I'm on the hunt for good quality shares that give a relatively good yield and possible capital appreciation.
The aim
Target income per year : $50k
Estimated current non-salary income: $2.3k with 25k vested
At this rate, I'm looking at accumulating $550k to 600k of savings to achieve the eventual target non salary income.
Hopefully I'm able to achieve 20% of target because of this down trend, hence saving up and spending within means is very important.
Means of getting there
Currently looking at two counters: Keppel corp and starhub
Keppel corp has entered the 5plus region which is approximately at the 50% from peak price region. Though high compared to the 4plus earlier this year, you can nv time the markets perfectly. It has now a potential div yield of 6 to 7 % after this year and a potential up of 60%. Makes it an attractive investment at the 5 to 7 year time frame.
Starhub: is #2 in the local Telco market, has more than mobile biz as its main stay. Though there is threat of a 4th Telco entering the already squeezy sg market, the fact that starhub is at multi year low, plus its consistent div approximately 20c, makes it an attractive buy. Though I would consistently review it's fundamental.
Looking at getting keppel for the keepers, and starhub for growth investment with some dividend to pay for the opportunity cost while I wait for price to go up. Gonna enter $15k while I scout for more opportunity .
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