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.
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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.
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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
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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.
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Gregg
Sunday 8th of July 2012
Hi Drizzt,
Recently I have added SIAEC (only 1 lot) into my portfolio.
What about Neratel? The take over by ST engr already blow off by shareholder last friday, hopefully its price will dip below 0.40 coming monday...:) ..lol..
Gregg
Tuesday 3rd of July 2012
HI J.
SIA Engineering, ST engineering, Comfort Delgro, Vicom and SGX are the good dividend play which definitely offer higher than inflation rate.
J
Monday 2nd of July 2012
Hi Gregg,
I'm looking for yield that simply more than the inflation rate in Singapore.
GREGG
Sunday 1st of July 2012
hi J,
What is the Yield (%) that you are looking at? i believe only REIT can get >7% base on current price.
Other wise, SIA Engineering would be a good position as well and it is resilient to oil price rises
Drizzt
Saturday 7th of July 2012
hi Gregg, i am looking at +/- 6%. hence M1 and SPH. I hope to see their earnings and dividends show growth. SIA engineering have moved up but the yield did not meet close to my critiera.
What have you uncovered?
J
Saturday 30th of June 2012
Most people would recommend investing in REIT. But would this cause the problem of not diversifying sufficiently? With Telcom at such a high price, it is hard to included them into my portfolio. Is there any other industries that pay out high yield dividends?
Drizzt
Saturday 7th of July 2012
Hi J, with high returns there may be high risk. Your job as an investor to see whether there are inefficiency such that its high returns for low risk. Don't be fixated by REIT and Telecoms. start looking for Dividend Growers. At the same time i am looking at those stocks that is lower volatile yet provides reasonable returns.