facebookAny insights on snail-moving Singapore dividend stocks? Why are these stocks hardly moving at all overall in a week? - Seedly

Tong soon

04 Jul 2020

Stocks

Any insights on snail-moving Singapore dividend stocks? Why are these stocks hardly moving at all overall in a week?

A month ago i bought a couple of high-dividend paying stocks : Sasseur Reit, ESR Reit, Yanlord, Silverlake axis. I notice these stocks hardly move at all overall in a week. Why is this so? The only one that moved alot is yanlord which posted a 5% increase on 2 July 2020 and even so i believe that people are trying to get hold of it before ex dividend date. So what happens after ex dividend date, will it plunge?

Whatever i buy, i am intending to hold on to it for 24 years. S

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Lin Yun Heng

04 Jul 2020

Senior Analyst at Delphi

Did you buy the mentioned stocks because of dividend yields? If so you may be in trouble somewhere in the future. High dividend yielding stocks may have unsustainable payout ratios and if their gearing ratio is high (eg >38%~) they may not have enough cash for the short term.

For your question, Yes, after Ex Div, the stock price will go down because the cash it was holding was distributed. Stock price should not matter much to you if you are holding a solid, dividend growing Reit/stock. Industrial REITs are defensive in nature and will be suitable for dividend plays. Retail REITs are more cyclical while office REITs are in between the two. Hospitality REITs will really depend on whether travel and tourism is booming but that won't be the case IMO for the immediate future.

At the end of the day, come up with your own investing strategy and stick to it. Ignore the market noises and take comments online with a pinch of salt. That said, this is my two cents and you should take this with a pinch of salt too. Hope it helps

Ang Yee Gary

04 Jul 2020

Medicine at National University Of Singapore

The price will drop each time it is XD

Similarly sometimes the price will creep up once dividend is announced.

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