In the article "How to triple your money" featured in the current Personal Money June 2010 edition. With the current inflation and cost of living escalating, a common person need wise investment for capital growth and preservation. Normal FD rate currently stand at 3% is not sufficient versus inflation. One of the ways to triple the money is through equity investment which require less capital compared to property investment.
1) High dividend yield share with good fundamental easily provide 5% annual return rate.
Excerpt from The Edge Financial today :-
CIMB said Wellcall was its top small-cap pick for June, adding that in its small-cap universe, Wellcall offered the highest dividend yield of 12% gross and 9% net for CY10. “This should provide strong support for the stock in volatile equity markets. “The share price also enjoys support from its net cash of 32 sen per share, which is equivalent to 26% of its current share price,” it said.
On Asia File, the research house said the global crisis had opened up new opportunities for the company as the weak consumer sentiment in the US and Europe had forced distributors to source for cheaper yet quality supplies, which the group was able to deliver. Refer to the table on the small cap stock pick by CIMB.
2)Defensive earning stocks like Supermax, Adventa & Latexx Partners which is a good pick when there is market correction though there are downside risks as to raw material price and electricity/gas price increase which could trim down the profit margin as well as oversupply due to capacity expansion.
