Singapore investors love dividends. Whether you are a young investor growing your wealth, or a retiree looking for retirement income, it’s never too late to start investing for dividend yield. How to diversify your dividend income sources as a passive investor? Let’s say you’re a Singapore investor – looking to invest for dividend yield today. What are the options available? A common approach would be to select a couple of Singapore blue-chip dividend stocks / REITs. For instance, DBS, OCBC, CapitaLand Ascendas REIT, CICT.² The problem with this Singapore centric approach:

1. Single stock risk – Eg. If CICT has an earnings miss
2. Singapore exposure risk – if Singapore doesn’t do well in certain economic cycles, this portfolio will have problems

An alternative is to become an active investor. This requires time and expertise to analyze the stocks you buy, as well as when to sell and rebalance your portfolio....