We dive into REIT dividends and T-Bill yields to find out if they are worthwhile investments.
During our REIT webinar this week, a participant asked, "Is 5% a good dividend yield to aim for when purchasing a REIT?"
My short answer? "It depends."
If I can earn 5% p.a. through a very safe option like a high-yield savings account, I’d typically expect my REIT investments to offer a higher yield to make them worthwhile.
On the flip side, if the T-bill yield is around 3%, I might consider high-quality REITs offering yields above that benchmark.
The key is to evaluate the available alternatives. To help, we’ve compiled the best fixed deposit rates and best savings accounts in Singapore, providing regularly updated rates so you can make an informed choice on where to park your cash.
We’ve also shared insights on what to expect for the next 6-month Singapore T-bill auction on 5 December, following the recent cut-off yield rebound to 3.08%....