What a lot of people would like is to have high yielding dividend stocks (4%-10%) to compliment their growth stocks or to provide passive income.
Reasonable Yield yet Strong Currency
Dividend Stocks in Singapore does provide a good yield. Yet the Singapore Dollar is a strong currency as to be a great financial hub, Singapore’s currency need to be strong
Tracking good dividend yield stocks
Singapore Dividend Stock Tracker lists Singapore best known high yield stocks and follows their yield payout, price to book, free cashflow yield changes daily.
This tracker is actively refine to include blue chips in Singapore and Mid cap suitable for international investors
Singapore Telecom Stocks
There are 3 telecom stocks in Singapore and they do provide good yields ranging from 4.5% to 8%.
They do not pale in comparison with other countries telecom stocks
Infrastructure and Utilities Stocks
Electric utilities, high ways, toll roads, air port, marine ports and oil & gas storage are high capital expenditure business that creates great barriers to entry. This make their cash flows very predictable and defensive.
Since they are high capex, they tend to be funded by large amount of debts, so investors would have to take note of their debt financing plans.
Here is a comparison of what kind of yields you can look for based on US infrastructure stocks listed. Note that in Singapore they would tend to be 2% higher.
Some listed infrastructure stocks in Singapore includes:
- Macquarie International Infrastructure Fund (MIIF): A listed fund that invest in a China Toll Road, a Taiwan broadcasting station and a China port. Yields 10% (Aug 2012)
- China Merchant Pacific Holdings (CMHP): A listed holding company investing in China Toll Roads. Yields 7.6% (Aug 2012)
- Hutchinson Port Holdings (HPH): A Hong Kong port operator that operates Li Ka Shing’s ports. Yields 7.9% (July 2012)
Criterias of good dividend stocks
Many have asked me what are the hallmarks of a good dividend stock. Essentially they are no different from selecting good companies
- Wide Economic Moats – monopolistic business, things people cannot live without, outstanding network effect
- Good Growth – must grow instead of becoming stagnant. For dividend payouts to grow.
- Low Dividend Payout – this enables the retained cash to be channel to grow more cashflow
- Positive Free Cashflow – the blood of a dividend stock. A good company will have increasing or consistenly positive free cashflow
- Good Yield – 4%-7% yield. High yielding stocks tend to be because of high payouts which might not be good long term.
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What are the pros and cons of investing in dividend stocks? What are the selection criteria? How do you know if it works? What are the pitfalls to watch out for?
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Here are some of my best articles on dividend investing:
- 5 Steps Guide to making Compounding work in Dividend Income Investing: How do we make compounding and time value of money work to build our wealth through dividend investing? This article explains a 5 step process to achieve that.
- Does Dividend Stocks Beat the Market?: What are the long term returns of dividend stocks, are they defensive? Will it be better if you invest in broad market index?
- Total Return Matters: Do not get blindsided by high dividend yield or capital gains. Total return matters in this Noble Group example.
- Focus on earnings payout, good business model dividend income stocks: High yield is not always ideal. What matters more is the sustainability of dividends in the long run.
- Stock Valuation and Dividend Sensitivity Analysis: How does price and dividend affect each other: Market demands a certain yield and your stock’s price may change due to it.
- Identifying the Business Model of your Dividend Income Stock: Dividend stocks can be self- renewing or liquidating. It is important to know what you are buying into. This article explains why.
- Dividend Stocks with strong fundamentals likely to outperform after a crisis: Fund Manager talks about how a mix of dividend cows and dividend growers will do your portfolio well during both bull and bear.
- How a Fund Manager chooses his dividend stocks: Here is a good list of criteria a global dividend fund manager use in their dividend income stock selection.
- An illustration of how Dividends and Spin-off hugely matters in overall returns: Here is a nice article to talk about how a stock ends up going nowhere but factoring dividends and spin-offs and their dividend, the returns are enormous.
I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.
- A High Certainty Income Plan With Glaring Holes - December 4, 2022
- Singapore Savings Bonds SSB January 2023 – 1-Year Yield Plunges to 2.95% (SBJAN23 GX23010Z) - December 2, 2022
- New 6-Month Singapore T-Bill (est. 3.8% Yield) Available on Auction Until 8th December 2022 - December 1, 2022