Investing rules of thumb- Dividend yields and Doubling

Ryan Goh: Life through these eyes

So, on my last post, Dividend Knight left me a nice comment. The part I found really interesting is that he mentioned that he’s on track to collecting $1,600 per month in dividends. Using my handy back-of-the-envelope calculation, I figured that his portfolio might be in the $300K region.

A day later, I happened to click on the link to his latest blog post and lo and behold, his current portfolio value is $316,000.

This brings me to the point of some useful rule of thumbs that I often use:

  1. The 4-5% dividend yield
  2. Rule of 72

4-5% Dividend Rule

While this is in the Singapore context, the same rule can be modified to suit your local market conditions. The way it works is that, in Singapore, while the dividend yield* can range from as low as 0% to as high as 7-8% for REITs, I find that the yield on…

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About andrepartridge

andrepartridge@googlemail.com
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