For dividend income hunters, a high yield might be tempting, but ultimately, what matters most is the reliability of the payout. In fact, high-yield stocks are often some of the most dangerous; what you really want is to be able to receive payouts come rain or shine. To find that stability, we must examine the safest dividend payers on the Singapore Exchange (SGX: S68), or SGX, and understand why a “safe dividend” means more than just yield. The key takeaway is that the ideal company pays a consistent annual dividend regardless of market conditions or gyrations. After all, the durability of the business is what counts – and often, it is the “boring” businesses that provide the most stable returns.

The 4 Key Data Points That Matter Most

How do investors determine if a company’s dividends are sustainable? Here are four key data points to take note of.

1. Firstly, a sustainable dividend payout ratio is important: we want companies that can pay

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