Starting your investment journey in the stock market can seem daunting, but with a solid plan and a reputable broker, it's a powerful way to grow your wealth. This guide will walk you through the necessary steps for a new investor with a starting capital of P300,000 (for example) in the Philippines, using DragonFi as your chosen online broker.


1. Getting Started with Your Broker: DragonFi

Choosing an online broker like DragonFi is the first crucial step. A broker is a licensed entity that gives you access to the Philippine Stock Exchange (PSE).



A. How to Open a DragonFi Account

The account opening process for online brokers is typically done entirely online and is straightforward.

  • Online Application: Go to the official DragonFi website or download their mobile app. Select "Open Account" and choose the appropriate account type (usually an Individual Cash Account for beginners).

  • Fill out the Application Form: Provide your personal information, contact details, financial profile, and investment objectives.

  • Submit Requirements: You will need to upload scanned copies or photos of your essential documents:

    • Valid Government-Issued ID: Passport, Driver's License, SSS ID, etc.

    • Proof of Address: Utility bill (electric, water, or internet) under your name, or a bank statement.

    • Tax Identification Number (TIN): Your Philippine Tax ID is mandatory for local investors.

    • Specimen Signature(s).


  • Know Your Customer (KYC) Verification: This may involve a short video call or a selfie with your ID to verify your identity.

  • Account Approval: Once your documents are verified and approved, you will receive an email with your account details and login credentials.

  • Fund Your Account: Transfer your initial capital of P300,000 (or a portion of it) from your bank account to your DragonFi trading account



B. What is the Minimum to Start?

DragonFi is beginner-friendly:

  • Minimum Initial Deposit: DragonFi has no minimum initial deposit requirement for opening a Cash Account.

  • Minimum Investment Amount: You can start investing with as little as P1,000 in their DragonFi Funds, but for direct stock trading, your first purchase must cover the board lot (minimum number of shares you can buy) for your chosen stock.



C. Charges and Fees for Buying and Selling Stocks

All stock market transactions in the Philippines incur standard fees set by the PSE, plus a commission charged by your broker. DragonFi's fees are highly competitive.


Use my referral code B0BD3 when you open an account to get a cash bonus:

  • Fund P25,000 or more: You get P200 cash bonus! 

  • Fund 50,000 or more: You get P500 cash bonus!

  • Fund P200,000 or more: You get P1,000 cash bonus!
     
  • Fund P500,000 or more: You get the maximum P1,500!



Example Calculation for P100,000 Trade



Your net amount:
  • Buy: P100,000 - P295.00 = P99,705.00 (Net amount invested)

  • Sell: P100,000 - P895.00 = P99,105.00 (Net cash received)


2. Recommended Long-Term & Dividend Stocks

It's important to remember that REITs (Real Estate Investment Trusts) in the Philippines are legally mandated to distribute at least 90% of their distributable income, making them a reliable source for higher, consistent dividends.

Based on recent market trends and the performance of local companies (as of late 2025/projected for 2026), here are 5 Philippine stocks that offer attractive yields and demonstrated performance.

Disclaimer: The following are for illustrative and educational purposes only. Past performance is not a guarantee of future results. Always conduct your own research (due diligence) or consult a professional financial advisor before making investment decisions.



High-Yield Dividend Stocks with Strong Performance





3. Dividend Income Projection on P300,000 Capital

To compare the expected cash flow, let's assume an equal investment of P60,000 (i.e., P300,000 stocks) for each of the 5 stocks, using the middle of their indicative yield range.

Note on Income: These amounts are based on the historical dividend yield and are the gross amounts. The final cash you receive will be slightly lower due to the 10% final withholding tax on cash dividends for resident citizens.


Key Takeaways for Your Strategy

REITs (AREIT, CREIT): These offer the highest current yields and are structured for mandatory quarterly payouts, which provides the most consistent cash flow. This is ideal for your dividend income goal.

Utilities (MER): Highly stable, often referred to as "recession-proof." They may not offer the highest yield, but their performance is reliable, which is crucial for a secure portfolio.

Conglomerates/Financials (AEV, BPI): These blue-chip companies provide a balance of decent dividends and strong potential for capital appreciation (growth in the stock price itself). This is what makes a dividend stock "still performing."



Summary for the New Investor

With P300,000, your focus should be on building a diversified portfolio of high-quality, stable companies and holding them for the long term (5 years or more). The dividends you earn are a bonus—a form of passive income—while the capital growth of the stocks themselves works to multiply your wealth.



ALSO IN TAGUIG


IMPORTANT NOTE: ang Taguigeño blog ay hindi konektado sa anumang account ng Taguig City government. Ito ay nabuo upang maghatid ng napapanahong balita at impormasyon para sa lahat ng Taguigeño.

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