A dividend yield above 5% is often enough to catch an investor’s attention. The reason for this is obvious: regular passive income can make a meaningful difference to long-term returns. That said, not every high-yield stock is worth buying. There are companies that are able to sustain their dividends because of strong cash flow and business activities. But there are some others that may find it hard to do so during tough times. In this context, here are three Singapore stocks paying dividends exceeding 5%. Let’s take a deeper look if their dividends appear sustainable.

What Makes a Good Dividend Stock?

A generous dividend yield looks attractive on paper, but it rarely tells the full story. Sometimes, a company’s share price falls because investors are worried about its prospects, causing the dividend yield to appear unusually high. In practice, dividends are paid with cash, not accounting profits. Companies that consistently generate health...