How an OFW Can Make Money from Stock Market

Homegrown Jollibee Foods Corp. (JFC) will plan to establish 200 new  stores in the country and put up around 80 to 100 new stores in abroad like China and the US.

On the other hand, the BDO Unibank Inc. (BDO) has partnered with Japan’s 10th largest bank, Shizuoka Bank Ltd, to service the banking requirements of the Japanese bank’s clients operating in the Philippines.

Jollibee and BDO are undoubtedly consider  the giant companies in the Philippines.

OFWs and the stock market

Being an Overseas Filipino Worker (OFW) in Thailand for over 10 years, I often asked myself how an ordinary Juan Dela Cruz  like me can participate in the national economic growth of the country.

ofwIt is not enough to simply save to reach  financial prosperity. The ultimate question is how to diversify your investment portfolio while working overseas.

The simple answer is through stock market.

Let me tell you how.

I bought stocks or shares in BDO Unibank last November (2015). BDO is one of the leading banking companies in the Philippines and a member of the SM Group of Companies, a conglomerate owned by tycoon Henry Sy, Sr.

The following months I bought more shares from Filinvest, a real estate development company in the Philippines to diversify my portfolio. Never put all your eggs in one basket, so to speak.

For the sake of illustration, I will use these two companies to explain how you can possibly earn from stock market.

There are two ways on how to make money from stock market: through price or capital appreciation and dividends. Capital appreciation is the rise of price value per stock over time. A dividend, on the other hand, means a portion of your profit given by the company to its shareholder.

 

Price Appreciation

Let’s take a look at one company, BDO UniBank. Inc., as our example. You know exactly what BDO bank is because you visit there many times.  For instance, to deposit and withdraw money, to apply for housing loan, and to receive remittance from overseas.

The table below illustrates my own portfolio taken from COL Financial account, a leading stock broker in the Philippines.

BDO illustration

price appreciationAs you noticed, I bought 60 shares of stocks from BDO. The value of stocks per share is 102.7620 pesos (the average price). However, the market price, meaning the value of stocks as of today (August 22, 2016) is currently 114.5 is a clear indication of price appreciation.

The total gain is 10.49 percent. Of course, the longer you hold your stocks the better as there is a potential to appreciates the values of stock over time.

But when you are you going to buy and sell stocks? Good question.

My mentor, the TrulyRichClub (TRC), gives regular stock alert and recommendation  to each TRC subscriber about what stocks to buy, when to buy, and when to sell. You buy stocks when the price is lower and has the potential to grow over a period of time. TRC has also set the target price for each stocks.

When the target price is being hit, it is the time to sell. Let say, the target price for BDO is 120.00 pesos and market price has reached this value, it will be the right time then to sell my stocks.

In some occasion a stock analyst suggests to hold stocks even it already hits the target price. It usually happens  when the company has still a strong potential to grow. As a result, the target price is being adjusted at a higher price (i.e. more than 120.00 pesos for BDO).

Dividends

Dividend is the profit you have received from the company. As a shareholder you are entitled to receive dividends depending on the performance of the company. For instance, my broker has sent me a notice of dividends few months ago about my earnings from Filinvest (FLI) real state company. It will be credited either in the form of stocks or cash depending on the preference of the company.

your dividendsDespite the risks being involved, stock market investing offers good opportunities to earn money even you are away from home as an OFW. Stocks are a good investment because they allow your money to grow if done right.

However, stock market investing requires discipline and commitment. For long-term investments,  it means setting aside a reasonable amount of money to be used to buy stocks monthly or regularly regardless of the economic situation of the country.

In a nutshell, you can take advantage of our growing economy as long as you know how the stock market works. Just remember to invest according to your investment objectives and risk tolerance.

 

Richly blessed,

Jun

 

 

 

Sources:

http://www.philstar.com/business/2016/07/24/1605886/jollibee-plans-more-us-stores

http://www.philstar.com/business/2016/07/14/1602497/bdo-ties-shizuoka-bank 

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P.S. 2  Are you an OFW? I encourage you to join TrulyRichCub (TRC) if you want to be financially literate: Join TRC Today!