In our previous article on Creating Passive Income From Dividend Investing, we shared on how one is able to create passive income from collecting dividends from stocks. I have received quite a few emails from readers sharing how badly their dividend income portfolio performed on the whole after including dividends.

In this article, I have decided to share a case study on Singapore Telcos, which would best explain what many Singaporeans have faced and an investment metric they could use to analyse such dividend income stocks in future.

When I first started out investing in 2011, I remember how many investors I met were investing into blue-chip companies such as Singtel, Starhub and M1 for their high dividend yields.

One would notice in the chart below, where in early 2011, the Singapore Telcos were trading at dividend yields of more than 10%. That would probably explain the attractiveness of