In Singapore how to earn a risk free return of 24% to 61% per annual
The answer : Buying divident stock in margin.
eg: Singtel , now the divident is 5%, if you use S$10000 to buy,
return is also 5%.
But if you use margin,
eg in CMC markets, the margin interest rate is only SIBOR + 2%
That work out to be 2.6% for now.
the margin for Singtel is 10%, that means you can use S$10000 to
buy S$100000 stock. and earn the 5% interest of S$5000,
minus the interest cost of S$2600
you make S$2400 out of your S$10000 investment,
that is a return of 24% per year.
another stock AIMS AMP REIT, divient is 8.7%
use margin, your return will became 61% per year.
But ofcouse, you have to have some risk management, in case the stock price drop 10-20 percent, you still have to have the money to prevent the marin call.
