The 9 best Singapore Dividend Stocks

Last Updated on January 11, 2023

Let’s jump straight to it:

The 9 best Singapore dividend stocks

1. Singapore Telecommunications (ST): Singapore Telecommunications or ST is the largest telecommunications company in Singapore and is one of the most popular dividend stocks in the citystate. ST is a bluechip stock and is one of the components of the Straits Times Index, a benchmark index for Singapore stocks. The company has a history of paying dividends and has consistently been paying dividends since its listing on the Singapore Stock Exchange in 1993. ST has a dividend yield of 4.2% and has paid dividends for the past 4 consecutive years.

2. OverseaChinese Banking Corporation (OCBC): OCBC is one of the three largest banks in Singapore and is the oldest. The bank was established in 1932 and is listed on the Singapore Stock Exchange. OCBC has a dividend yield of 4.1% and has been paying dividends for the past 20 consecutive years.

3. Wilmar International Limited (WIL): Wilmar International is one of the world‘s largest agribusiness companies and is also one of the largest companies listed on the Singapore Stock Exchange. The company is involved in a variety of activities, including the production, processing and distribution of agricultural products. Wilmar has a dividend yield of 3.9% and has paid dividends for the past 8 consecutive years.

4. Keppel Corporation Limited (KCL): Keppel Corporation is a conglomerate with a focus on engineering, infrastructure and the environment. The company is listed on the Singapore Stock Exchange and has a dividend yield of 4.3%. Keppel has been paying dividends for the past 6 consecutive years.

5. Singapore Exchange (SGX): Singapore Exchange is the main stock exchange in Singapore and one of the largest in Asia. The company is listed on the Singapore Stock Exchange and has a dividend yield of 4.1%. SGX has been paying dividends for the past 5 consecutive years.

6. CapitaLand Limited (CL): CapitaLand is a real estate developer and one of the largest in the Asia Pacific region. The company is listed on the Singapore Stock Exchange and has a dividend yield of 4.1%. CapitaLand has been paying dividends for the past 5 consecutive years.

7. City Developments Limited (CDL): City Developments is one of the largest real estate companies in Singapore and is listed on the Singapore Stock Exchange. The company has a dividend yield of 4.3% and has been paying dividends for the past 15 consecutive years.

8. Singapore Technologies Engineering (STE): Singapore Technologies Engineering is an engineering and technology company listed on the Singapore Stock Exchange. The company has a dividend yield of 4.1% and has been paying dividends for the past 3 consecutive years.

9. Singapore Press Holdings (SPH): Singapore Press Holdings is a media company listed on the Singapore Stock Exchange. SPH has a dividend yield of 4.1% and has been paying dividends for the past 10 consecutive years.

How to buy Singapore stocks

Buying stocks in Singapore is relatively straightforward and similar to buying stocks in other countries. Before you begin investing, however, you will need to open a brokerage account with a Singaporean broker. This process involves completing paperwork and submitting documents such as proof of identity and address. We believe Interactive Brokers is a good choice (we use them ourselves)

Once you have opened the account, you will need to fund it with money. This can be done by transferring money from a bank account or by direct debit. You can also use a credit card or a prepaid card in some cases.

Once your account is funded, you can begin researching and trading Singapore stocks. You will need to research the stock you are interested in, including its financials and performance. You may want to use online resources such as Yahoo Finance or Bloomberg to help you make an informed decision.

Once you have found a stock you want to invest in, you can place an order with your broker. You will need to specify the stock symbol, the number of shares you want to buy, and the price you are willing to pay. Your broker will execute the order, and once it is complete, you will own the stock.

It is important to note that when you buy Singapore stocks you may be subject to taxes. Additionally, there may be fees associated with trading, and you should consider these when deciding how much to invest. That said, most capital gains are sourced to the country of residence.

Finally, remember to monitor your investments and make sure they are performing in line with your expectations. This may involve tracking the share price and financial performance of the company, as well as news and industry developments. Investing in the stock market can be a rewarding experience, but it can also be risky. Be sure to understand the risks involved before investing and make sure you are comfortable with them.

Singapore dividend stocks vs American dividend stocks

Singapore and American dividend stocks are both attractive investment options for investors seeking to generate income through dividends. While Singapore stocks may offer higher yields, American stocks often provide greater stability and potential for growth.

In Singapore, investors have access to a wide range of stocks that are listed on the Singapore Exchange. These include blue chip companies, as well as smaller and mid-cap companies. Many of these stocks pay regular and reliable dividends, offering investors steady income. Singapore stocks typically offer higher yields than most American stocks. This is because the Singapore stock market, as well as its dividend-paying stocks, are less volatile than their American counterparts.

In addition, Singapore stocks generally have lower capital gains taxes, which can make them an attractive option for investors looking to generate income. Singapore also has a relatively low tax rate on dividend income, which makes it an attractive option for investors looking to maximize their dividend income.

In contrast, American stocks offer more stability and potential for growth. This is because the US stock market is generally more mature and liquid than the Singapore stock market. As such, American stocks tend to be less volatile than their Singapore counterparts, providing investors with greater stability and potential for growth.

In addition, American stocks are typically more diversified than their Singapore counterparts. This diversification can provide investors with greater protection against market volatility. Furthermore, many American stocks also offer higher yields than their Singapore counterparts, as well as greater potential for capital gains and dividend growth.

Ultimately, both Singapore and American dividend stocks can provide investors with attractive investment options. However, which one is a better option for you depends on your investment goals and objectives. Singapore stocks offer higher yields and more stability, while American stocks offer greater potential for growth. Ultimately, the choice between the two depends on the investor’s individual needs and preferences.

Pros and cons of buying Singapore dividend stocks

Pros

1. Dividend Stability: The Singapore government has a strong commitment to encouraging foreign investment and protecting the interests of shareholders. This commitment translates into the stability of dividend payments from Singapore companies.

2. Tax Advantages: Dividend payments from Singapore stocks are exempt from taxes in most cases. This makes them an attractive option for investors who are looking for a tax-efficient way to invest in stocks. The withholding rate on dividends is currently zero! This makes dividend investing very attractive.

3. Relative Liquidity: Singapore stocks are generally more liquid than stocks from other countries in Asia. This means that they are easier to buy and sell and can provide investors with quick access to their money.

4. Solid Economic Foundation: Singapore is one of the most developed economies in Asia and has a solid foundation for long-term growth. This provides investors with a degree of assurance that their investments will remain safe and profitable.

Cons

1. Lack of Diversification: Singapore’s stock market is relatively small compared to other markets in Asia. This means that investors may not be able to diversify their portfolios as much as they would like.

2. Risk of Currency Fluctuations: Singapore’s currency, the Singapore Dollar, is subject to fluctuations in the global currency markets. This means that gains from Singapore stocks can be reduced or erased if the Singapore Dollar weakens.

3. Lack of Transparency: Singapore does not have the same level of disclosure and transparency as other markets in Asia. This can make it difficult for investors to get a clear picture of the financial position of companies in which they are investing.

4. Limited Investment Opportunities: As with any smaller market, Singapore’s stock market offers limited opportunities for investors. This means that investors may have difficulty finding stocks that meet their criteria and investing goals.

Are Singapore stocks shareholder friendly?

Shareholder friendly is a term used to describe companies that are open and helpful to their shareholders. Generally speaking, Singapore stocks are considered to be shareholder friendly. This is because the Singapore Exchange (SGX) has taken steps to ensure that the rights of shareholders are protected and that shareholders are able to make informed decisions.

The SGX has implemented a number of measures to protect shareholders. For instance, the SGX has set up a Corporate Governance Advisory Panel to help companies ensure that their management structure is effective and that the interests of shareholders are taken into consideration. The SGX also requires companies listed on the exchange to adhere to certain disclosure requirements. This is to ensure that shareholders are provided with accurate and timely information about the company’s performance and activities.

In addition, the SGX has introduced various measures to enhance shareholders’ voting rights. For example, shareholders have the right to call for an Extraordinary General Meeting (EGM) if they are dissatisfied with the performance of the company. This allows shareholders to voice their opinion and have a say in the decision-making process. The SGX also requires companies to hold at least one Annual General Meeting (AGM) each year where shareholders have the opportunity to raise questions and receive answers from the company’s board of directors.

Overall, Singapore stocks are considered to be shareholder friendly because the SGX has taken steps to protect the rights of shareholders. These measures help to ensure that shareholders are able to make informed decisions and that their interests are taken into consideration.

How big is the Singapore stock market?

The Singapore stock market is one of the major exchanges in South East Asia and is the third largest in the region. It is one of the most important financial hubs for the region and has become increasingly important for global investors.

As of March 2021, the market capitalization of the Singapore Stock Exchange (SGX) was S$1.4 trillion. It is the largest stock exchange in Southeast Asia, and the second largest in Asia, after the Tokyo Stock Exchange. In terms of total market capitalization, it is the 22nd largest stock exchange in the world.

The Singapore Stock Exchange offers a wide range of products and services, including equities, derivatives, bonds, commodities, foreign exchange, and more. It also provides a centralized market for the trading of Singapore stocks and securities. In addition, the exchange operates two indices, the Straits Times Index (STI) and the MSCI Singapore Index (MSCI SGX), which are widely used by investors to monitor the performance of the Singapore stock market.

The SGX also provides investors with access to a variety of mutual funds, exchange-traded funds, as well as structured products. The exchange also offers a range of other services, including corporate finance, research, and market data.

Overall, the Singapore Stock Exchange is a major hub for the South East Asian region and is an important part of the global financial system.

Does the Singapore stock market have crossownership?

No, the Singapore stock market does not have cross-ownership. In Singapore, cross-ownership of companies is prohibited by the Monetary Authority of Singapore (MAS). This rule was put in place to ensure that shareholders have an equal chance of gaining a controlling interest in a company, and to protect minority shareholders from becoming victims of unfair company takeovers.

Cross ownership is pretty common in other countries, for example in Japan. This can be very detrimental for wealth generation.

Cross-ownership is when a company, or companies, owns a significant portion of another company’s voting shares. This can be done by controlling shareholders, or a large group of shareholders, who have a controlling interest in the company. It can also be done by a company purchasing shares in another company. Cross-ownership can be beneficial to shareholders, as it can give them more control over the other company, and can result in greater returns. However, it can also be detrimental, as it can lead to company takeovers by controlling shareholders, or collusion between companies.

In Singapore, cross-ownership is prohibited by the MAS to protect minority shareholders and ensure a level playing field for all stakeholders. The MAS requires that companies must have at least two independent shareholders, who are unrelated to each other, own more than 5% of the voting shares in the company. Companies that do not comply with this requirement may be subject to sanctions. Additionally, the Singapore Exchange (SGX) has rules in place to prevent companies from exercising control over one another.

Overall, the Singapore stock market does not have cross-ownership. This is to protect minority shareholders from being taken advantage of by controlling shareholders, and to ensure a level playing field for all stakeholders.

What is the average dividend yield historically in Singapore?

The average dividend yield on Singapore stocks has historically been around 3.2-3.6%. This is slightly higher than the average dividend yield of the broader international markets, which is around 3-3.2%. In the US, it’s normally lower.

The dividend yield in Singapore is influenced by a variety of factors, including the health of the economy and the performance of the local stock exchange. In addition, the dividend yield is also influenced by the dividend policy of individual companies. Some companies may pay out higher dividends than others, while others may choose to reinvest their profits into their businesses.

In general, Singapore stocks tend to pay out slightly higher dividend yields than the broader international markets due to the relative stability of the Singapore economy. Singapore has a strong and well-developed legal and regulatory framework, which helps to protect investors from potential losses due to financial fraud and other risks. Furthermore, Singapore is home to a number of large, well-established companies that have a long track record of delivering sustainable returns to shareholders.

In summary, the average dividend yield on Singapore stocks has historically been around 3.2-3.6%, which is slightly higher than the average yield of the broader international markets. This higher yield reflects the relative stability of the Singapore economy and the strong dividend policies of local companies.

Singapore small-cap dividend stocks

Singapore small-cap dividend stocks are stocks from smaller companies listed on the Singapore stock exchange. These companies tend to be more volatile than larger, blue chip stocks and tend to offer higher dividend yields. Investing in these stocks can be a great way to diversify a portfolio and generate income.

When considering small-cap dividend stocks, investors should look carefully at the company’s fundamentals, including its financials, management, and industry outlook. It is important to research the company’s dividend history and understand the company’s dividend payout policy. Investors should also pay attention to any dividend cuts or suspensions that may be announced.

In terms of dividend yield, Singapore small-cap stocks tend to offer higher yields than larger, blue chip stocks. This is because the dividend yield of a stock reflects its risk level – the higher the risk, the higher the yield. Small-cap stocks are generally considered riskier than blue chips, so they tend to have higher dividend yields. In addition, small-cap stocks tend to have higher levels of liquidity, which can be attractive to investors looking to buy and sell quickly.

Investors should also be aware of the potential risks associated with investing in small-cap dividend stocks. Small-cap stocks tend to be more volatile than larger, blue chip stocks and can be subject to rapid price swings. Additionally, the dividend payments of these stocks may be erratic and less predictable than the payments of larger, more established companies.

Overall, Singapore small-cap dividend stocks can be a great way to diversify a portfolio and generate income. However, it is important for investors to do their due diligence and understand the risks associated with investing in these stocks. By researching the company fundamentals, dividend history, and potential risks, investors can make informed decisions and maximize their returns.

The historical return of Singapore stocks vs Singapore dividend stocks

The historical return of Singapore stocks refers to the historical performance of stocks listed on the Singapore Stock Exchange (SGX). This includes the overall performance of stocks listed on the SGX, as well as the performance of individual stocks. Singapore stocks have generally provided investors with good returns over the long term, as the Singaporean economy has grown steadily over the past few decades.

On the other hand, Singapore dividend stocks refer to stocks which pay dividends to shareholders. These stocks can provide investors with a steady income, in addition to capital gains from stock price appreciation. Historically, dividend stocks in Singapore have provided investors with returns which are higher than the broader market. This is because dividends typically provide a cushion for investors, as the income from dividends can offset any declines in the stock price.

In conclusion, both Singapore stocks and Singapore dividend stocks have historically provided investors with good returns. Over the long term, stocks listed on the SGX have provided investors with good returns, while dividend stocks have typically provided higher returns as compared to the broader market.

How often do Singapore companies pay a dividend?

Singapore companies typically pay a dividend at least once a year. The frequency of dividend payments can vary, depending on the company. Some companies pay dividends quarterly, while other companies pay dividends semi-annually or annually. Companies may also choose to not pay dividends at all.

The amount of the dividend and the frequency of dividend payments are usually determined by the company’s board of directors. The board will typically consider the company’s profits, debts, and other factors when determining the amount of the dividend and the frequency of payment. Generally, companies will pay dividends when the board believes that the company is financially stable and has excess cash that can be returned to shareholders.

It is important to note that the dividend payment is not guaranteed. Companies can choose to change the amount or frequency of dividend payments at any time. Additionally, companies may decide to suspend dividend payments if the board decides that it is not in the company’s best interest to pay a dividend.

In general, Singapore companies tend to pay dividends annually, though there are exceptions. Ultimately, the decision on when and how often a company pays its dividends is up to the discretion of the board of directors (just like in other countries).

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