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%.
Here is a guide to investing in these 3 telco stocks >>
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.
Build a long term income stream today!
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?
Follow my blog through RSS feeds, book mark it, or Like my facebook page for constant articles that would enrich your dividend investing journey
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.
- New 6-Month Singapore T-Bill Yield in Late-Late-March 2023 Should Drop to 3.7% (for the Singaporean Savers) - March 23, 2023
- We Cannot Always Be Shifting the Goal Posts When Doing Retirement Food Planning - March 21, 2023
- CPF’s New Personal Retirement Income Planner Tells Me I Secured a $1,430 to $1,770 Real Monthly Income to Successfully Cover My Most Important Retirement Lifestyle - March 18, 2023
Saturday 25th of January 2014
Hi Drizzit, Saizen in the Dividend Stock Tracker is not showing the prices. Is it because of the recent share consolidation and the counter ID is changed.
Saturday 25th of January 2014
Sorry about it. i amend the stock code. it was causing issue.
Wednesday 11th of December 2013
Welcome ! I want to thank you for your sharing and your comments. Wow, it is a very good blog---investmentmoats.com. You have done such a great and amazing job. I learned a lot of investment concepts from your blog, Thanks again.
Christmas is coming,
Wish you have a merry christmas and happy new year!
Thursday 12th of December 2013
Hi Allen, Thanks for visiting and sharing your blog here.
Tuesday 9th of July 2013
currently im only invest on unit trust and new to all these dividends stuffs . two Q to ask - 1) how can I begin and where to start investing cash dividend? 2) do i need the service of a broker ? if yes any recommendation...?
Friday 15th of February 2013
Why is it that there isn't any Banking/Finance sectors of dividend stocks in your chart? i.e. DBS/ UOB/ Great Eastern etc?
Saturday 16th of February 2013
Hi Lammy, interesting because I wanted to put more but they aren't usually consider your staple dividend stocks. I will make sure to consider adding it.
Friday 25th of January 2013
Hi, Is there a record some where that I can see the history of dividend payout of a company? It would be great something like stock price in a chart form.
Great blog site, I will follow from now on. :)
Sunday 27th of January 2013
hi mathew, you would have to go to the SGX site. unfortunately my website are not able to do that. would be great if it can