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Attention Dividend Investors: Here’s Why REITs Can Boost Your Passive Income Flow
By The Smart Investor  •  July 28, 2021
Investing for dividends is a very rewarding activity. Not only do dividends help to supplement the income from your day job, but they can also eventually act as a passive income source for your retirement years. Dividend-seeking investors are in luck. Singapore is well-known for being a REIT hub and offers a choice selection of REITs that you can invest in. You can liken it to a buffet where you are spoilt for choice. REITs should form an integral part of a dividend investor’s portfolio. Here’s why this asset class is so effective in boosting your passive income flow. REITs as effective dividend vehicles REITs are mandated by law to pay out at least 90% of their net profit to enjoy tax breaks. This regulation means that REITs need to pay out the bulk of their profits as distributions, thus making them effective income instruments. Rising DPU Many REITs have displayed resilience and a great track record for raising their distributions over time....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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