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Are you an income investor? Income investing might not sound very exciting but as you grow your portfolio to a critical mass, you would be creating a massive stream of cash flow for you to either reinvest or subsidies your lifestyle. Imagine if you have an income portfolio of SGD1.0 million with a 4% dividend yield, you would be expecting a cash flow of dividends worth SGD40,000 every year for you.
So what are some of the stocks that might be potential investments for an income investor? Here are 2 of our Income Watchlist stocks that be perfect for you.
Frasers Centrepoint Ltd
Frasers Centrepoint Ltd is one of the largest property companies in Singapore. It has presence globally, in particular in China and Australia. It has an integrated property business model. It is able to develop residential properties for sales, but it also has a full range of property REITs under its stables.
This means that when it develops a commercial or industrial property, it has the option to sell them to one of the four REITs it managed, freeing up capital for more projects and ensuring a recurring income for its shareholders.
From its interests and control in REITs and Trusts like Frasers Centrepoint Trust (Retail Malls), Frasers Commercial Trust (Offices), Frasers Logistics & Industrial Trust (Industrial) and Frasers Hospitality Trust (Hotels), Frasers Centrepoint has a wide stream of stable income which in turns provide a strong dividend for its shareholders.
Nestle Malaysia is the listed-subsidiary of Nestle SA, the USD260 billion global food giant. Nestle Malaysia has a long history in Malaysia, supplying Nestle brand of food products for the residents of Malaysia. The household brands like Milo, Maggi, Kit-Kat and Nescafe are all part of the Nestle Malaysia family.
The company has also been a great investment for long-term investors, producing an annual return of more than 15% a year from 2007 to 2017. Moreover, it is also one of the few stocks listed on Bursa Malaysia that has been giving out a strong dividend consistently for decades.
To us, Nestle Malaysia should definitely be on the Watchlist of any great income investor.
Want to know more about Value Investing In Asia? We have just launched our book “Value Investing In Asia; The Definitive Guide To Investing In Asia”, published by J.Wiley. Find out more about the book here.