Investments That Beat Inflation

Investments That Beat Inflation

Do you think that your money that sits in a bank savings account is earning good money in a safe and secure way? In real terms, the value of your cash may be falling in purchasing power because of the low interest rate and rising inflation. This article 'Investments That Beat Inflation' will provide useful leads on how to beat inflation with investment strategies that work.

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How to make your money work harder

Source: The Sunday Times
Author: Lorna Tan
3/10/2010

A double whammy of rising inflation and low interest rates is taking a toll on the pockets of people here.

Anyone who keeps most of their spare cash in bank deposit accounts may well be going backwards in real terms, as inflation outstrips the meagre rates paid by the banks.

It was recently reported that inflation is now at an 18-month high, no thanks to costlier transport, housing and food. For the full-year, inflation is expected to come in between 2.5 per cent and 3.5 per cent.

By global standards this level of inflation is manageable, but it is getting on the high side for Singapore.

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Editor
Investments Singapore

Dividend Investing

Dividend Investing

Dividend investing in Asia was found to offer the highest returns at stock investing according to a report by an investment firm. Over a period of 20 years, dividend investing outperformed other kinds of stocks. Read more about dividend investing in the article attached below for details.

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The Business Times
Published October 4, 2010
By JAMIE LEE

High-yield stocks beat growth plays in Asia, says Citi report

Dividend investing has trumped growth investing over 20 years

STOCKS with high dividend yields in Asia offer the highest returns and beat investing in stocks that promise earnings growth, Citi Investment Research said in a report last week.

Citi noted that dividend investing in Asia excluding Japan has trumped growth investing over 20 years, which provides a return of about 8 per cent per annum in US dollar terms.

'In a growth part of the world, it is not growth that outperforms but the purest form of free cash flow - dividends,' said analyst Markus Rosgen. 'Yet, most investors still focus more on growth and capital appreciation than income.'

Citi's analysis showed that the largest earnings per share (EPS) growth came from stocks of companies with an average earnings growth.

And in comparison to returns from those with average earnings growth, those from dividend yield still beat this by 310 basis points per annum.

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Editor
Investments Singapore