Singapore investors love dividends.
Whether you are a young investor growing your wealth, or a retiree looking for retirement income, it’s never too late to start investing for dividend yield.
How to diversify your dividend income sources as a passive investor?
Let’s say you’re a Singapore investor – looking to invest for dividend yield today.
What are the options available?
A common approach would be to select a couple of Singapore blue-chip dividend stocks / REITs. For instance, DBS, OCBC, CapitaLand Ascendas REIT, CICT.2
The problem with this Singapore centric approach:
Single stock risk – Eg. If CICT has an earnings miss Singapore exposure risk – if Singapore doesn’t do well in certain economic cycles, this portfolio will have problems
An alternative is to become an active investor.
This requires time and expertise to analyze the stocks you buy, as well as when to sell and rebalance your portfolio.
For investors who don’t have the time or inclination to actively monitor your own portfolio, a good option to consider is investing in ETFs.
What about the world’s first APAC Financials ETF?
I was excited to learn that Lion Global Investors and OCBC Securities would be collaborating to launch the world’s first ETF focused on financials sector across Asia Pacific – that pays a minimum dividend yield of 5% p.a.1 of the ETF’s Issue Price for the first 2 years.
Disclosure: This post is sponsored by Lion Global Investors and OCBC Securities. All views and opinions expressed in this post are from Financial Horse.
Lion-OCBC Securities APAC Financials Dividend Plus ETF – minimum 5% p.a.1 dividend yield for first 2 years (of the ETF’s issue price)
The full description of Lion-OCBC Securities APAC Financials Dividend Plus ETF is below.
But to sum up,
