Top 5 stocks to invest in singapore

Log in Create live account. DollarsandSense Business and economy website. Every 6 months or so, I try to run this hypothetical exercise to build a completely new portfolio from scratch. Jump to.

Your Money. Your Future.

The city state of Singapore is one of the developed markets in Asia. Unlike its neighboring country of Malaysia, Singapore had a strong political system since its independence that helped transform its economy into a highly industrialized economy on par with the developed world. As a major trading hub of global trade with a top invesf sector global investors cannot afford to ignore Singapore. From an investment standpoint, Singapore has many advantages over the U. According to Nikko, Singapore has a resilient economy and the four Cs which are discussed below:.

How to select the best dividend stocks in Singapore

And it goes like this. Because your fund is brand new, you own absolutely no stocks at all. This means that over the course of the next 3 to 6 months, you need to deploy most of your newly raised capital into the market. What stocks do you buy? No spam guarantee.

Best Singapore dividend stocks to watch

Not going to name names, but many of them went on to rank dividend yield stocks in Singapore by their dividend yield, without taking a deeper look at the business model, the dividend payout ratio, the cash flows. No spam guarantee. When I started Financial Horse, the goal was very simple. There was no good, high quality financial content out there catered for the Singapore investor, and I wanted to address that problem.

I am a huge fan of dividend yield stocks. You invest a sum of money, and the stock pays you a certain amount of money each year. Sometimes, the share price even goes up. I like to think of dividend yield stocks as individuals.

Either he grows his future earnings incredibly quickly, or he is going to reduce the amount he pays you dividend cutor he is going to go into default bankruptcy.

Imagine then you have a 45 year old CEO. I know that I wrote an article in the past saying that I am not a fan of SingTel. But times have changed. And probably the greatest change to me, had been the interest rate policy from the US Federal Reserve. For those who missed it, Jerome Powell basically came out to say that there were no more US rate hikes in SingTel suffered in top 5 stocks to invest in singapore because of EM currency weakness, which resulted in poor earnings when restated in SGD.

InI no longer see this as an issue. EM currencies are iinvest to have a much better year, so Forex weakness is no longer going to be a headwind for SingTel going forward. But when Mapletree Commercial Trust is trading at a 4. But all the risks above also mean tto there could be large capital gains if SingTel were to pull it off.

For example, if Bharti Airtel emerges as the winner in the Indian market, then SingTel share stockss is going to jump. Investing is ultimately about risk-reward, and at current prices, I think SingTel looks interesting.

You get singapre growth, and a 5. Ascendas Hospitality Trust and Ascott Residence Trust have overlapping investment mandates, and the official note from the CEO is that they may look to either nivest the investment mandate, merge the two, or sell one. So until that is resolved, expect some uncertainty over the future of this REIT.

Mapletree Logistics Trust has had a huge runup in unit price the past year, from 1. Some of that is due to the macro environment, but a good part of it is also their ability to grow earnings and acquire high quality logistics properties. What I really like about this REIT, is that it gives you broad exposure to the Asian logistics market from a real estate perspective. Logistics demand across Asia is going to explode in the coming years as Asia develops further and eCommerce grows, so I think the opportunity here is massive.

There was a slight issue with one of its big tenants CWT, who recently defaulted on certain repayments. CWT accounts for about 9. The latest news has also been that CWT has managed to fully redeem its upcoming bond redemption. In any case, given the high quality nature of the assets held by Mapletree Logistics Trust, I think any selloff from this CWT saga could present a good buying opportunity.

I for one, would be adding heavily if this trades at a high 5. But this REIT makes up for it with a whopping 6. As a portfolio diversifier, and a way to juice the yield, I think Frasers Commercial Trust could be a great choice.

I really like Netlink Trust. They own a bulk of the fibre connections in Singapore. Netlink Trust reported a 2. Growth numbers are actually looking pretty decent as well — outpacing the IPO forecasts, so there could be more upside in. Ultimately though, because almost all Singapore households will eventually be on Fibre connections, the longer term growth will need to come from population growth and new households.

The biggest tail risk would be technological disruption. No one is going to use 5G for unlimited video streaming at home, the costs would be prohibitive. Capex costs is another big one, because if the fibre connections degrade, replacing ti is going to be huge time and cost, given that most of these fibre networks are buried underground. And there you have it! Invvest also note that this article is based on prices and facts as at 18 April It basically functions as my own personal stock watch, so I update it as and when I have new ideas for stocks I am interested in, and when situations change such that existing stocks are no longer attractive.

Till next time, Financial Horse, signing out! Enjoyed this article? Dear FH, your articles and insights have been very helpful. I understand that the price is not exactly low. Thank you for taking time to reply. Yeah I get what you mean. The way Singappore see it though, is that it really depends on your investment horizon. Singapode FH, thank you for your objective feedback.

I appreciate it. Have loaded some for long singqpore growth after reviewing. Dear FH, when should be the right time to buy into these stocks?

Stoc,s about CMT? Timing is always tricky, and not something I get right myself all the time. CMT is pretty expensive right now, so there could be a real risk of capital loss at this prices.

My take:. Due to 5G? Dear FH, is there a particular period s where most sgx stocks would hop out dividends? Wondering when I can expect to receive income from dividend paying stocks. They usually tend to be after their AGMs. So it will be around May-June for those companies with a Dec year end, and sept for those with a March year end.

REIT are usually either semi annual or quarterly distributions. Volume seems to be dipping. Thanks lots! Ascott Residence seems to be paying dividend by returning capital and hence yield sustainability may be questionable.

Note that the latest 2Q19 DPU of 3. I am unable to find any basis of the capital distribution which unlike other Reits distribute only capital gains. It seems like it is simply return capital to top 5 stocks to invest in singapore dividend more stable and therefore its sustainability is worrying. Am I missing something? I believe there was a sale of their assets ihvest, so some of the gains was returned in the form of yield.

Hi FH; Ascott Residence seem to be boosting its dividend by using capital distribution and hence its dividend yield sustainability may be questionable. Its latest 2Q DPU of 3. I am unable to find any basis of the capital distribution which unlike other Reits returning only capital gains.

I am not sure if I missed anything? Nobody can predict the future. Do your homework well, decide n take action. That is investment, and accept that there will be gains and losses. I have 3 of your top 5 dividend recommendations and with big positions, and 1 of your recommendations on radar. Given the near zero interest rate environment we are likely to re-enter again, your analysis is sound. Thanks for sharing your thoughts, and glad that you liked this! Sign in.

Log into your account. Password recovery. Financial Horse Galloping towards Greener Pastures. Weekly Updates. No problem at all, glad that it was helpful! I bought some netlink trust recently as. Dear FH,I m a new investor. All these stocks are at their 1yr high.

Is it. Haha your question seems to have got cut off at the end unfortunately. Good analysis, thank you. Leave a Reply Cancel reply. Friends of Financial Horse.

Just wanted to thank you for playing a significant role in improving financial literacy across the country! The market invesg to agree as well, because DBS trading at the highest premium to book value of all 3 banks. In the last year I can see more and more analysts coming round to the possibility of Netlink being at the centre as a provider to the 3 4 telecos. After the election, this investment will need to be relooked to take into account the views of the eventual winner if say we get an Elizabeth Warren presidency, this investment looks a lot less appealing in the top 5 stocks to invest in singapore term. Log in Create live account. DBS finally did that in 3Q No representation or warranty is given as to the accuracy or completeness of this information. The trust operates mostly in the retail arena. Increase your market exposure with leverage Get spreads from just 0. The bank also remains committed to growing its dividend. Mapletree zingapore a diversified portfolio with top geographies counting the likes of Singapore, Hong Kong and Japan. Inbox Community Academy Help. Weekly Updates. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Top 5 Singapore Stocks to buy edition.