Filipinos planning to invest in stocks are advised to be mindful of the companies that they plan to invest in so that they are sure that the company matches their expectations when it comes to providing passive income.
Vanessa Galvez, Head of Product Development and OFW Desk at First Metro Securities Brokerage Corporation, outlined several tips to ensure that OFWs investors get to monitor their passive income in six steps:
Do look for companies that give out consistent dividends. Investors can either check www.edge.pse.com.ph and click ‘dividends’ to check which of the listed companies provide consistent dividends every year.
An easier way is to log on to your FirstMetroSec online account as account holders can access and monitor their dividends through their online portal by accessing ‘Research>Dividend History’ on their data.
Do check for the dividend yield. Dividend yields are your way to measure profitability as it provide detailss on the amount of money you get back for every Peso you invest in a particular stock, usually presented in percentages.
FirstMetroSec account holders can skip the math as their online portal automatically compues the dividend yield to help investors monitor the growth of their investments.
Mind the dates. Investors should be mindful as to when they bought their stocks – If they bought the stock before the ‘ex-date’ they will get dividends. However, the dividends wouldn’t immediately be credited on your account. It will only be added in during your ‘date payable’ field – both of which are accessible at your FirstMetroSec online portal.
Reinvest for compounding. It’s highly encouraged to place and invest the passive income that you have earned through stocks to compound the earnings and maximize your gains by buying new stocks out of it.
“Ang pera mo, kapag ni-ro-rollover mo, lumalaki ung interest. Pag nagstart ka ng year one, maliit lang. Kapag ni-roll over mo yung interest, lalaki at lalaki siya over time,” explained Galvez.
Your income is not dependent on the stock price. Galvez explains that companies continue to provide dividends to share holders despite of price fluctuations: “Kahit mababa ang stock price, continuous na dumating ang dividend sa kanyang mga shareholders. That’s the beauty of dividends. No matter what the stock price is, continuous lang na dumadating. Kaya nga siya tinawag na passive income,”
Invest in preferred stocks of stable companies. Preferred stocks provide dividends for its stockholders which are not dependent on the company’s earnings, with a fixed rate and payout per year.
The “Investing for Passive Income” webinar aims to help OFWs learn about passive earning through dividends and to distinguish facts from myths about earning passive income through investing.
First Metro Securities is also currently providing assistance for many OFWs who wish to open their brokerage accounts. Filipinos interested to begin their investments can email Galvez and her team at: [email protected] or at [email protected]
First Metro Securities can also engage with OFWs through Facebook, Twitter and Instagram: @FirstMetroSec