Arrangement: Huang Yuqi
Want to invest but worry about not having enough capital, can you really turn around by investing? Liu Jianxin, who is on the Facebook fan page “Boss Niu×Lohas Life”, often shares his stock saving experience on the Internet. It is hard to imagine that he used to be a monthly income earner. Born in 1984, he came from an ordinary background, because he wanted too much to “become rich”. He saved his first pot of gold by relying on increasing income and reducing expenditure, and forced savings; Then continue to accumulate wealth through disciplined stock saving, with the goal of creating a steady stream of cash flow after retirement. At the age of 38, he has successfully saved 500 joint treasury funds (5880), and it is estimated that he will receive more than 1.3 million yuan in dividends in 2023.
Liu Jianxin, who often interacts with netizens, observed that the reason why many people do not invest is that they have no money and the principal is not enough. In fact, it is because spending money is like running water. As long as you are willing to face up to financial problems and find ways to control expenses, you will definitely squeeze out spare money to save or invest. In his new book “Moonlight Clan Saves to 500 Stocks: A Super-Easy Copy Saving Method, Let the Dividends Flow in by Itself”, he shares how he first learned the correct concept of financial management, and then locked in deposit holdings to accumulate wealth.
In Taiwan, Gold Holdings will be loved by the majority of stockholders, simply because the stock price, profit, and dividends are mostly relatively stable. It is difficult for you to earn a price difference in the short term. Feel the rewards it brings.
When Liu Jianxin first started depositing financial stocks, he bought them on the basis of a 5% yield rate. He hoped that for every 1 million yuan he invested, he could bring about 50,000 yuan in cash flow per year. And because there was no need for cash flow at that time, he reinvested the dividends into buying stocks to continue accumulating stock assets.
Although Liu Jianxin buys on the basis of a 5% yield rate, after depositing financial stocks for a period of time, he found that the long-term rate of return is not only 5%. Take Depository Gold (5880) as an example:
1. Receive cash dividends + realize stock dividends: Many gold holdings will distribute cash dividends + stock dividends, but everyone sees that the cash dividends are not high, and it is inevitable that they lack interest. Take Hekujin as an example, if you only use cash dividends to calculate the current year’s yield, it will always be lower than 5%; but if you buy 1 Hekujin, and then sell the stock dividends, after adding the cash dividends, it will exceed 5%. 5%. This has been the case for nearly five years since Liu Jianxin started buying Hekujin in 2018. Even in April 2022, if you spend 31,500 yuan and buy 1 bond with the highest price of 31.5 yuan, the yield rate is still over 5%.
In 2022, Hekujin will distribute a cash dividend of 1 yuan and a stock dividend of 0.3 yuan. Investors can receive 1,000 yuan and 30 odd shares for every one they hold. Assuming that these 30 shares are sold at the lowest price of 23.4 yuan after ex-dividend, the cash is 702 yuan, plus the cash dividend of 1,000 yuan, a total of 1,702 yuan in cash can be obtained, and then divided by the purchase cost of 31,500 yuan, the yield rate is still 5.4%.
2. Receiving cash dividends + retaining stock dividends: Then, assuming that the stock dividends are retained and the number of shares is gradually increased, what will be the difference in the yield rate?
You can directly divide the cash dividend by the purchase cost to calculate the annual “dividend yield”, that is, simply use your own purchase cost to calculate the cash flow brought by the cash dividend. Since there are many financial holdings, including Hekujin, allocating shares and dividends at the same time, stock dividends will gradually increase the number of shares held by investors, and the dividend yield will also increase invisibly.
If we look at the long-term total return rate including dividends, more than half of the gold holdings have outperformed the market. Calculated from the end of 2012 to the end of 2022, the cumulative rate of return of Taiwan’s weighted stock price return index is 165.96%, while the total return rate of the combined warehouse gold held by Liu Jianxin is the highest, reaching 231.63%, followed by the first gold (2892) The rate of return is 216.61%, while the total rate of return of Fubon Gold (2881) and Huanan Gold (2880) exceeds 186%. In conversion, the annualized rate of return exceeds 11%, which means that the assets can be doubled after 6 years of deposit.
Liu Jianxin emphasized that the accumulation of stocks may feel slow in the first few years, but what he wants is the final result, starting with the end, the sooner the accumulation starts, the sooner it will be achieved later. He said: “Although I am very happy to calculate how much dividends I can receive every year, but because I don’t need to live on this cash flow at present, I will use the dividends to buy stocks to have the effect of compound interest. Wait until the accumulation Once you have accumulated enough wealth and retired, you can live purely on cash flow, even without investing new money.”
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