Singapore High Yield Dividend Stocks for Income
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%.
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.
2012 Dividend Yield Comparison of Different Infrastructure Assets
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:
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?
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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 Matter s. 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 .
I just discovered your website today. The Stock Tracker is really great! Thanks for sharing it freely. Just a few questions:
1. What do the coloured shadings mean?
2. For Payout Ratio, I understand that the numerator is the OCF, but what is the denominator?
3. I hope that Ascendas India Trust can be included. Any comment on this stock?
With warm regards,
Hi vincent, you can find out more from my About Dividend Stock Tracker section.
basically, red normally indicates unfavorable readings. blue indicates favorable readings. for example blue in long term debts and dividend yields indicate that debts are lower than my threshold and yield is high enough compare to average.
Free cash flow is red when a company pays out more dividend than cash flow.
the payout ratio is computed by dividend payout dividend by operating cash flow
I may choose to include ascendas india trust. it is not a normal reit in the sense that it expand via development as well. i would classify it will treasury china trust. i may put it up in the future.
thanks for visiting my blog!
Hi Drizzt, great analysis provided in this website. Good job. i have 2 questions:
1) Since dividends are paid out only at certain dates, how do you calculate dividend yield in your Dividend Stock Tracker? Do you base on the data(stock price qty) at june? or at the time the dividend is issued?
2) What are your views on the 3 telcos in 2012? I am too leaning towards Starhub, but do you feel that starhub is overpriced? e.g. Aug 12, price starhub singtel.
the dividends are based on the last few quarters or if the company is doing a rights issue, it will be based on the upcoming forecasted DPU. I think all telcos are not going to move much in terms of earnings. its difficult to find a growth engine. Singtel will face headwinds internationally. They might be vulnerable to larger than expected capex. it doesn t matter starhub singtel, their number of shares are different, singtel is a bigger monster than starhub and m1 ever is. i got a feeling there may be ramp up capex for 4G.
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.
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
Why is it that there isn t any Banking/Finance sectors of dividend stocks in your chart? i.e. DBS/ UOB/ Great Eastern etc?
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.
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 ?
. 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,
Christmas is coming,
Wish you have a merry christmas and happy new year!