We compare Singapore REITs and blue chip stocks, and explain why a broader mix may help investors build more resilient income.
What happened?
Singapore real estate investment trusts (S-REITs) have long been popular with investors looking for passive income.
After the recent pullback in Singapore REITs, many readers in the Beansprout Telegram community started asking whether the sector had become attractive again.
That is a fair question. Lower share prices have pushed up dividend yields to 6% for some Singapore blue chip REITs which are trading near their 5-year lows.
This was why I previously examined whether Singapore REITs could be a buying opportunity, as rising interest rates and bond yields weighed on the sector.
At the same time, we saw DBS and OCBC near all-time highs after their recent earnings and also offering attractive dividend yields.
This naturally raises a broader question: should investors continue to rely on REITs as the main source of portfolio income?...