facebookI head that in Singapore, most stocks are dividend stocks.. is this true? and should that be my investment strategy when buying sgx stocks? - Seedly

Anonymous

18 Apr 2019

Stocks

I head that in Singapore, most stocks are dividend stocks.. is this true? and should that be my investment strategy when buying sgx stocks?

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Singapore is well known to be a wealth accumulation hub, so I wouldn't disagree with that investment strategy there. Many foreign investors seek Singapore's stability and high dividend payouts to fund their retirement expenses, given that our blue chips and REITS give out a good amount of dividends (you could be looking at 7~10% dividend payout for REITS) which are extremely consistent, especially for some of the incumbent REITS. Singapore being such a land scarce city-state is a good place to invest in property - with low supply, the drop in demand in times of recession won't cut out so much profits from the REITS that they would be unable to sustain their dividend payouts, and most REITS occupancy percentages are in the high 90s.

If you're looking for more growth, perhaps US is a "safer" yet much more easily investable space, as there is alot of information regarding their companies publically available in the internet, as well as opinion articles and updates on their economy. If you like to still act upon a different strategy, you could look towards US, but take note of the exchange rate risk!

That’s not exactly wrong. Singapore has many finance and real estate companies which tend to give high dividends. With the small consumer base here, it’s harder to have a ‘growth’ company. Go for the companies that have strong fundamentals, offering sustainable high dividends.

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