Steady Compounding, Quiet Confidence: My 2025 Investment Reflection
Portfolio 2025 Performance
- Total Profit: SGD 86,000 (an 18% gain)
- Dividends Received (YTD): SGD 26,000
Looking ahead, I anticipate a more moderate return in 2026—approximately 10% total, split evenly between 5% from dividends and 5% from capital appreciation.
Strategy & Context: Riding the Fed Cycle
The attached performance chart begins in January 2022—the start of my deliberate, full-cycle investment campaign. The core idea was simple yet disciplined: capitalize on the U.S. Federal Reserve’s interest rate hike and subsequent cut cycle.
When the Fed began aggressively raising rates, dividend-paying stocks—particularly in Singapore and Hong Kong—declined in price. At the time, I didn’t know the hikes would be "higher for longer," but that very uncertainty created opportunity. For over two years, I consistently bought the dip, reinvesting patiently while collecting steady dividend income. These dividends didn’t just cushion the volatility—they offset most of the paper losses and preserved capital.
Then, as the Fed pivoted toward rate cuts in 2024, the strategy came into full view: dividend stocks rallied, and both my core portfolio (comprising high-quality, tax-efficient SG/HK dividend payers) and my satellite portfolio (focused on the Hang Seng Tech sector) benefited meaningfully from the reversal.
Reflections on Time, Discipline, and Purpose
I’ve adhered to this approach for more than three years—a true test of aligning belief with action. The window of opportunity lasted longer than I initially expected, yet the outcome unfolded almost exactly as envisioned.
Dividend investing won’t make you rich overnight. But it delivers sustainable, compounding wealth—quietly, reliably, and with psychological resilience. It’s given me something far more valuable than returns: peace of mind and personal freedom.
Because of this passive income stream, my family’s basic living expenses are covered. I can say “no” to work that doesn’t align with my values. I’m not chasing headlines or trying to impress anyone.
What I’m building is enduring resilience—for my family, my principles, and my long-term peace of mind.
And in an uncertain world, that’s the ultimate return.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
