Investing for dividends is a very rewarding activity.
Not only do dividends help to supplement the income from your day job, but they can also eventually act as a passive income source for your retirement years.
Dividend-seeking investors are in luck.
Singapore is well-known for being a REIT hub and offers a choice selection of REITs that you can invest in.
You can liken it to a buffet where you are spoilt for choice.
REITs should form an integral part of a dividend investor’s portfolio.
Here’s why this asset class is so effective in boosting your passive income flow.
REITs as effective dividend vehicles
REITs are mandated by law to pay out at least 90% of their net profit to enjoy tax breaks.
This regulation means that REITs need to pay out the bulk of their profits as distributions, thus making them effective income instruments.
Rising DPU
Many REITs have displayed resilience and a great track record for raising their distributions over time....