What's My Next Move: DBS, AIMS, or Parkway?

As we reach the mid-year mark of 2024, I've been steadily investing in stocks while keeping ample cash reserves for potential market downturns—a promising opportunity to expand my portfolio. However, I find myself contemplating the next steps in my journey towards securing a comfortable passive income.

Considering Investment Options:

Should I increase my holdings in DBS, a stock I've previously endorsed in my articles? Alternatively, perhaps I should explore other potentially advantageous moves.

Some Singaporean bloggers advocate placing funds in T-Bills yielding 3.7% to 4%, anticipating market corrections. They opine that it's not a matter of "if" but "when" such corrections will occur.

 

My Approach:

Personally, I favor investing in stocks like Parkway REITs, which offer stable dividends at a 4.2% return. This approach not only provides a steady income akin to T-Bills or fixed deposits but also allows for liquidity to seize better opportunities, such as investing in higher-yielding stocks like DBS, currently boasting a 6.1% dividend yield.

 

Exploring Options:

To summarize my considerations:

Parkway REITs: Known for stability with a 4.2% dividend yield, serving as a secure parking spot for funds until better opportunities arise.

AIMS REITs: Offers a substantial dividend yield of approximately 7.7%,  appealing for potential higher returns.

DBS: A consistently performing stock with a current dividend yield of 6.1%, albeit at a higher price point.

 

Statistical Summary:

DBS: Price SGD 35.45, Trailing P/E 8.82, P/B 1.58

Parkway REITs: Price SGD 3.50, Trailing P/E 21.07, P/B 1.50

AIMS REITs: Price SGD 1.26, Trailing P/E 12.86, P/B 0.70

 

Additional Factors to Consider:

While a detailed analysis across various metrics (valuation, market conditions, dividend sustainability, long-term investment thesis, risk tolerance) could offer deeper insights, I aim to strike a balance, avoiding over-analysis that might lead to indecision.

Conclusion:

With approximately 85% of my cash already allocated to stocks (mostly Reits and Banks), I'm content for now. I'll wait for opportune moments to transition from stable but lower-yielding stocks to higher-yielding options like DBS. With the Federal Reserve's "Higher for Longer" stance which will likely maintain bank stock values at its current high, I will have to be prudent in timing my investments in the near future.

This is my investing journey.