Keep Your Dividends Coming with WealthPark!

Late last year, you might have seen our article on the 3 Important Rules for Dividend Stocks,

where we pointed out the 3 things you should be looking at if you would like to invest in dividend stocks.

Those 3 things were:

  1. Free Cash Flow
  2. Dividend Pay-out History
  3. Dividend Yield

While these criteria are applicable to most dividend-issuing companies around the world, investors in Singapore have been blessed for years now with a much more stable way to gain dividends…

… by investing in REITs.

Simply put, REITs (Real Estate Investment Trust) are business trusts

which allow investors to own a chunk of a commercial property in the form of shares in the stock market.

And while investors around the world generally invest in REITs to diversify their portfolio or to ride on the stable property market in their countries,

Singapore REITs (or S-REITs) investors are usually in it for their consistent dividends.

You see, most people…

even investors, do not know this but

S-REITs are generally encouraged to distribute 90% of their rental income as dividends to their unitholders so to enjoy tax transparency treatment by IRAS.

That’s the reason why most S-REITs opt to go that way, which also results in consistent dividends quarter after quarter for their unitholders.

On top of that, unit holders that are trading their REITs through Singapore’s Central Depository or CDP are not subjected to withholding taxes,

which means they get whatever amount that was declared as dividends without having to pay for anything else unlike other countries.

The challenge, however, is that most people do not know the value of the REITs they are buying into

and whether or not it is worth their money.

Like your average share in the stock market, a REIT also has an intrinsic value.

However, rather than coming up with a valuation based on their earnings and cashflows,

the value of a REIT is usually determined by their dividend history or Net Asset Value.

Still, this information can sometimes be difficult to obtain without leafing through thick financial reports,

And that is even before you eventually sit down to work on the calculations using the information you’ve just found.

That’s the reason why the team at WealthPark recently came up with a valuation tool specifically for REITs,

including a function called comparative valuation, featuring an easy-to-read valuation chart based on the REIT’s Dividend Yield and Price/ NAV ratio over the years.

Watch as Gideon and Alex walk you through this feature, and start earning your REITs dividends Smarter, Faster and Easier!

Love what you are reading on our blog?

Join our mailing list to receive the latest updates and company case studies from our team.

Stock Investing is Smarter, Faster and Easier with WealthPark.

We have received your interest to subscribe to our newsletter.
Please check your email for verification

 

 

Yen Hung Chua

Yen Hung Chua

I became an advocate of money management and value investing at the age of 27 for a simple reason. Money management, investing and MOST IMPORTANTLY, emotional stability – was never something that was taught in school. We end up a bunch of workers who are taught to only work for money but not the other way around, and to treat investing like a game of chance. And it was time to change that. Being with WealthPark, not only do I have the opportunity the spread the money-consciousness further and wider, but the platform on its own, is also wickedly useful for anyone who wants to invest in stocks.

Leave a Reply