The end of juicy dividend investing in Singapore ?
Does this mean, assuming all else being equal, we should expect further dividend cuts in REITs and other sectors as well. When it comes to dividend investing, Singaporean investors are one of the best (and luckiest) given the less volatility, high yields and tax benefits in the local market. However, COVID-19 realities might bring a pause to the high dividend yield environment as we have seen.
It is true that broad market equity indices have recovered massively globally (though Singapore is still lagging behind). However, the leaders were massively on the technology and defensive sectors side. Many global banking indices are still at historically low level and like many others, and does not look like recovering soon enough.
Keep calm and choose your camp
We are definitely going through a swift change in the financial markets and investment space. It