12-04-2013, 05:14 PM
(This post was last modified: 12-04-2013, 05:44 PM by CityFarmer.)
I don't know for any Singapore stock has consistent 20 years of >5% dividend. SPH has 10 years dividend history of above 5%. Since i have only 10 years data, so not sure it is so beyond 10 years.
You prediction is not flaw, but it highly depend on "the" company performance in the next 20 years, which might include 2 bull-bear cycles (assuming 7 years cycle)
IIRC, average return from stock investment is around 10% (both by capital appreciation and dividend). IF you manage to beat the average and take full advantage of compounding, the end result after 20 years is more than 74K
You prediction is not flaw, but it highly depend on "the" company performance in the next 20 years, which might include 2 bull-bear cycles (assuming 7 years cycle)
IIRC, average return from stock investment is around 10% (both by capital appreciation and dividend). IF you manage to beat the average and take full advantage of compounding, the end result after 20 years is more than 74K

“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡