Value Investing For Singapore!

Why Dividends and Good Yielding Singapore Stocks?
Dividend Announcements Note: These pages are updated very frequently so do check back for the latest announcements!
|| S-REITS || Singapore Dividend Yield Stocks || Dividend Annoucements ||
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.   Scroll down for dividend announcements Source: www.channelnewsasia.com Singapore

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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Discussions:

Value investors love dividend stocks with strong business fundamentals. Retail investors seeking the best compounded dividend yields must buy solid dividend paying businesses at prices that are way below intrisic values. Such businesses must also be cash rich and can withstand the test of time through fundamental analysis.

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Other Useful Resources:

1. Taxation of distributable dividends by Inland Revenue Authority Of Singapore

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