There seem to be a phenomenon of real estate investment trusts and blue chip dividend stocks running like nobody business.
A review of my dividend stock tracker seem to show a lot of the yield stocks’ yields compressing.
Starhub for no reason ran from $3 to $3.40. All the REITs are doing very well. So much so that there are only a handful of yielders having yields in excess of 8%.
What could be the reason?
Could it be the market volatility result in these stocks being perceived to be safer?
Could the low savings rate and high inflation result in people searching for better yields?
High yielding dividend stocks tend to do best in low growth environment (See article on historical behavior of dividend stocks)
Whatever it is, I am having trouble evaluating risk versus reward to add my monthly savings.
One thing we need to see is for the DPU for these stocks to go up to justify the rises in prices.
To get started with dividend investing, start by bookmarking my Dividend Stock Tracker which shows the prevailing yields of blue chip dividend stocks, utilities, REITs updated nightly.
Make use of the free Stock Portfolio Tracker to track your dividend stock by transactions to show your total returns.
For my best articles on investing, growing money check out the resources section.
- New 6-Month Singapore T-Bill Yield in Late-September 2023 Should Stick to 3.75% (for the Singaporean Savers) - September 21, 2023
- A Concentrated, High-Quality Fixed Income Financial Independence Income Strategy Has Enough Uncertainty - September 20, 2023
- Why Do We Save Money After We Reached Financial Independent Status? - September 18, 2023