Just got wind that SGX and SPH and FTSE will be working to create a Straits Times Index Dividend Index to facilitate the creation of new investment products.
The index represents the cumulative value of ordinary dividends paid by the stock components of the 30-member benchmark index, the Straits Times Index, and will pave the way for “creating products like derivatives, tracker funds, exchange-traded funds and other structured products,” according to a statement sent to the exchange.
The benchmark has gained 10% this year.
The dividend index will run on a calendar year basis with reviews in March and September to take into account any changes in the index components, according to the statement.
Well, this is very likely that it will pave the way for a Singapore Dividend Select ETF which would be good for investors who are fans of low cost ETFs. If its local ETFs priced in SGD it will be best, but it will depend on the aggregate dividend yield of the basket of stocks.
Some of the best criterias would be:
- Dividend growing for the last 5 years
- Dividend with less than a fixed payout ratio
This would be very similar to the SGX list dividend ETF DJ STOXX Global Select Dividend 100 index. But I struggle to find a lot of Singapore Companies that fit that criteria.
Nevertheless, it is interesting to see how this develops.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-April 2024 to Drop to 3.70% (for the Singaporean Savers) - April 18, 2024
- Golden Nuggets from JPMorgan Guide to Retirement 2024. - April 16, 2024
- Be Less Reliant on Banks and Build Stronger Capital Markets by Pushing for Better Shareholder Dividend and Buyback Yield - April 14, 2024
SnOOpy168
Tuesday 2nd of November 2010
I just hoped that this is in SGD, not like the ETF DJ STOXX Global Select Dividend 100 : with it's valuation in EUR but quoted in USD.
Drizzt
Tuesday 2nd of November 2010
this is def gonna be in USD i suppose. but essentially what matters is what the currency the revenue is earn in and what is its relations to home currency isnt it.
Selina
Tuesday 2nd of November 2010
Dear Drizzt,
I cannot find the way to contact you. Forgive me sending message to you in this way.
I'm Selina Xue, working in a financial service startup - Kalengo (www.kalengo.com).
I know your website from the Top 50 Stock Market Blogs.
I'm thinking of a topic when reading your blogs. For years, regardless of the evolving of financial service, investors still have to browser several websites to use the financial analysis tools, news and blog posts, and exchange information with their network.
These are the problems always on our mind, and we are trying to give a different take - build an open and extensible financial social platform.
The distinguishing features of our website lie in
1. We collect, filter and extract the most important and relevant financial information from more than 10,000+ blog posts and news sources. Check the example http://www.kalengo.com/apps/asset_beta. 2. We incorporate the collective intelligence and social media power into our platform.
If this strikes your fancy, would you like to review our website to see whether it can benefit your readers?
Sincerely Director of Corporate Communication
Drizzt
Wednesday 3rd of November 2010
hi Selina, thats a long comment let me digest and get back to you shortly.