Why Dividends and Good Yielding Singapore Stocks?

Dividend stocks, when compounded over time yields the best return for long-term investors. Unfortunately, most investors do not think long term and hence dividends are perceived as shelter against a depressing or bear market. In fact, it has been proven again and again by academic researchers that compounded returns reaped from dividends paid by strong, cash-rich businesses yield outstanding returns over the past 40 years. The purpose of the content here is to re-focus Singapore based investors back onto the importance of dividend, and perhaps allow an investor to constantly keep track on the monthly announcements for stocks that are paying dividends.

Dividend News from Blogosphere

Costs Compounds Over Time in Wealth Building. Critically Minimize Your Costs
Discovered on 20 Mar 2017 at 6:40 pm
When we talked about the power of compounding, we usually talked about how your returns compound. On the other side of the coin, which is seldom talked about, is that cost compounds as well. There is a distinct difference between returns and cost in your different wealth building method: Costs are definitely incurred but how much […]

CPF Talk Review – No Unique Solutions, Rich Assets vs Good Assets, Opening a CPF SA for your baby, Paying off Home Loans Earlier and Niche Rule of Thumbs
Discovered on 18 Mar 2017 at 6:00 pm
CPF is many things to Singaporeans, and we should be concern about how we can make sense of the CPF, and manage the CPF more efficiently. We conducted our BIGS LIVE on 16 Mar 2017, centering on making sense of your CPF and we have a very healthy turned out. My friends Chris from Tree of […]

TDSR, Seller’s Stamp Duty, HDB Resale Grant Changes Aimed at Helping Singaporeans Cushion an Increasing Challenging Singapore Outlook
Discovered on 15 Mar 2017 at 7:08 pm
There are a slew of changes on buying and selling properties announced in this 3 short months of 2017. The way we should look at these policies is that the government have a few levers that they can pull and push to stimulate on the demand side or the supply side. There are various niche […]

Why Fresh Water is Such an Important Commodity – Something to ponder about with the Singapore Budget annoucement
Discovered on 12 Mar 2017 at 6:00 pm
One of the changes announced in the 2017 Singapore budget was that we would be paying a higher tariff if we do not conserve water. This is especially so for those businesses or household who spends more than 40 cubic meters of water. The changes can be summarized by the table above. In the future […]

How Much do you value having Options in Life?
Discovered on 11 Mar 2017 at 5:05 pm
A few days ago, I was alerted to a comment on my Facebook about a blog post. The author of the post came to a conclusion that it is better to use cash to pay down our mortgage, instead of using our government forced savings, the CPF OA account. I tried to understand why this […]

Singapore Savings Bonds SSB April 2017 Issue gives you 2.27% interest per year over 10 years
Discovered on 9 Mar 2017 at 5:00 pm
Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The Apr 2017’s SSB bonds yield an interest rate of 2.27%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks […]

Managing and Growing Money the Feminine Way – the Future is Female
Discovered on 6 Mar 2017 at 5:00 pm
She looked at the two of us, not knowing what she should do. When you have her portfolio of problems, it is not an easy situation to get out of.  She was estranged from her mother, who thinks that since she is the only one who went all the way to university, she should contribute […]

My 23 Insurance Philosophy (revised after reflecting on the past 10 years )
Discovered on 4 Mar 2017 at 5:00 pm
Have you wonder if you planned something out, whether you are doing things the right way? 12 years ago, I had the idea how I could plan my insurance protection by doing it myself. I executed it. There were not much resources then in Singapore and the traditional way was to listen and buy what your […]

UMS Maintains a Full Year 6 cents Dividend Payout and an IPT Acquisition of Klaf Engineering
Discovered on 28 Feb 2017 at 4:41 pm
UMS Holdings announced their fully year result yesterday. Its been sometime since I bought this stock, sold this stock, then bought back again. So here is my brief look at the business Share Price: $0.67 Outstanding Number of Shares: 429 mil Dividend per share: $0.06 (8.9% Dividend Yield) Cash Flow required to pay dividend per […]

How Malaysia’s East Coast Rail and China’s Future Transportation Strategy impacts Singapore
Discovered on 27 Feb 2017 at 5:29 pm
I am a fan of Benjamin Koh at Lighthouse Advisors. Lighthouse Advisors is a value shop for the accredited investors based in Singapore. What is great is that Benjamin’s letters to clients (which was embargoed for 1 year) and the public is a tome of knowledge for people like myself learning investing. Through his commentary. […]

SingTel - Cash Dividend/ Distribution::Mandatory (SGD 0.107)
Discovered on 21 Jun 2015 at 7:45 pm
KSH - Cash Dividend/ Distribution::Mandatory (SGD 0.015)
Discovered on 19 Jun 2015 at 6:46 am
SYT ADR US$ - REPL::Cash Dividend/ Distribution::Mandatory (SGD 1.979)
Discovered on 18 Jun 2015 at 7:44 pm
ShanghaiTurbo - REPL::Cash Dividend/ Distribution::Mandatory (SGD 0.25)
Discovered on 17 Jun 2015 at 6:46 am
Nikko AM STI ETF - Cash Dividend/ Distribution::Mandatory (SGD 0.0482)
Discovered on 17 Jun 2015 at 5:46 am
CHU ADR US$ - REPL::Cash Dividend/ Distribution::Mandatory (SGD 0.327)
Discovered on 14 Jun 2015 at 8:45 pm
Chemical Ind - Cash Dividend/ Distribution::Mandatory (SGD 0.015)
Discovered on 12 Jun 2015 at 4:46 am
Versalink - Cash Dividend/ Distribution::Mandatory (SGD 0.005)
Discovered on 11 Jun 2015 at 6:20 am
Cheung Woh - Cash Dividend/ Distribution::Mandatory (SGD 0.01)
Discovered on 10 Jun 2015 at 11:17 pm
Advanced - Cash Dividend/ Distribution::Mandatory (SGD 0.003)
Discovered on 9 Jun 2015 at 10:17 pm
ShanghaiTurbo - Cash Dividend/ Distribution::Mandatory (SGD 0.025)
Discovered on 8 Jun 2015 at 10:17 pm
China Minzhong - Cash Dividend/ Distribution::Mandatory (SGD 0.0643)
Discovered on 8 Jun 2015 at 10:17 pm
Boustead - Cash Dividend/ Distribution::Mandatory (SGD 0.02)
Discovered on 26 May 2015 at 7:18 am
Hiap Seng - Cash Dividend/ Distribution::Mandatory (SGD 0.005)
Discovered on 26 May 2015 at 6:18 am
Vallianz - REPL::Cash Dividend/ Distribution::Mandatory (SGD 0.0007)
Discovered on 25 May 2015 at 5:47 am
Mencast - Cash Dividend/ Distribution::Mandatory (SGD 0.01)
Discovered on 25 May 2015 at 5:47 am
Hai Leck - Cash Dividend/ Distribution::Mandatory (SGD 0.01)
Discovered on 22 May 2015 at 7:47 am
CH Offshore - Cash Dividend/ Distribution::Mandatory (SGD 0.09)
Discovered on 22 May 2015 at 5:47 am
PTR ADR US$ - Cash Dividend/ Distribution::Mandatory (SGD 1.3722)
Discovered on 21 May 2015 at 11:45 pm
IS ASIA HYG US$ - Cash Dividend/ Distribution::Mandatory (SGD 0.15)
Discovered on 21 May 2015 at 6:47 am
IS ASIA BND US$ - Cash Dividend/ Distribution::Mandatory (SGD 0.10)
Discovered on 21 May 2015 at 6:47 am
Sunpower - Cash Dividend/ Distribution::Mandatory (SGD 0.001)
Discovered on 20 May 2015 at 9:18 am
Sri Trang Agro - REPL::Cash Dividend/ Distribution::Mandatory (SGD 0.0158)
Discovered on 20 May 2015 at 6:18 am
BRC Asia - Cash Dividend/ Distribution::Mandatory (SGD 0.005)
Discovered on 20 May 2015 at 5:47 am
United Food - REPL::Cash Dividend/ Distribution::Mandatory (SGD 0.001)
Discovered on 20 May 2015 at 4:46 am

Dividend and Tax Resources (For Singaporeans)

  • Taxation of distributable dividends by Inland Revenue Authority Of Singapore (IRAS)
  • [PDF] Tax Guide on “Tax Exemption of Foreign-Sourced Income

  • Why Dividends?

  • Dividends tend to indicate dependability and corporate transparency
  • Dividends receive preferential tax treatment over other income producing investments
  • If you reinvest dividends, you start your own compounding machine - over time the amount you receive in dividends increases as you buy more and more shares
  • Companies that pay consistently growing dividends shows a commitment to their shareowners
  • Stocks that consistently increase their dividends tend to see their shares price appreciate over time
  • Stocks are certificates of ownership and therefore dividends are a profit sharing of sorts with the owners of the company. It's your company, why shouldn't you get some of the profit?
  • As a source of income, dividends have the advantage that if there are no material changes to the company then the dividend will stay the same even if the stock price changes with the general market. Those of us who are planning to live off withdrawals from our RRSPS or other investment accounts will undoubtedly suffer from various heart ailments every time there is a correction in the markets.
  • Dividends cannot be faked where as creative accounting practices can influence reported earnings and thus the expectation of growth.
  • Good dividend yields dividend stocks tend to not get grossly over valued.
  • A huge percentage of the total market return is accounted for by dividends. So it makes sense to choose stocks with dividends.
  • Dividend-paying stocks hold equity price better in economic or market downturns.
  • Dividend-paying stocks tend to have more moderate declines in case earnings don't meet analyst (example, Wall-Street) expectations, relative to non-dividend paying stocks.
  • Dividend stocks give you something to cling to in bear markets. Not only do they tend not to get hit as hard, but they provide that trickle of income to get you through it. All the better if you reinvest it.

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