SSB 3.06% p.a. T-bill 3.75% p.a. OCBC 40c DPS!

1. Singapore Savings Bond is offering a 10 year average yield of above 3% p.a. again.

Like I said in the past, this means it makes more sense for me to buy Singapore Savings Bond than to make voluntary contribution to my CPF account.

This is because the average interest rate I get from CPF for my age group is about 3% p.a.

This takes in the allocation to OA and SA as prescribed by the CPF.

Nothing into the MA as my MA has hit the prevailing Basic Healthcare Sum.

However, since I have already used all my funds meant for CPF voluntary contribution in 2023 and also 2024, I would be tapping in 2025’s funds if I were to buy this Singapore Savings Bond.

This is not a bad idea since bond yields could fall later in 2024.

Well, problem is my war chest is complaining after my recent large withdrawal for IREIT’s rights issue.

A hungry war chest is an angry war chest.

Must replenish war chest first.

2. The recent 6 months T-bill auction saw a cut-off yield of 3.75% p.a.

Not fantastic but not too shabby either when compared to what a 6 months fixed deposit offers.

Happy that my non-competitive bid was fully filled.

Looking forward to the next auction happening on 17 August.

I would probably be increasing the application quantum for that auction too as I continue to strengthen my T-bill ladder.

I will do this by using some of the dividends received from AIMS APAC REIT, adding to funds returning from a maturing T-bill.

3. OCBC announced results!

Dividend per share of 40 cents declared!

This is much higher than last year’s 28 cents!

As my investment in OCBC is much larger than my investment in either UOB or DBS, this is going to have a huge impact on my passive income for 2023.

Still feeling giddy from my recent blogs on UOB and DBS.

Now, I feel even more giddy.

So, I shan’t say anything else about OCBC.

I give you a picture instead.

Click to enlarge.

I remind myself that OCBC is only paying out half of its earnings as dividends.

This means that the common stock of OCBC is growing more valuable over time.

Congratulations to all fellow shareholders!

Financial freedom is not a dream for most of us in Singapore, and investing for income can only help.

If AK can do it, so can you!

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