Want to beat rising inflation? These SGX-listed funds and stocks offer dividends of at least 3%

Want to beat rising inflation? These SGX-listed funds and stocks offer dividends of at least 3%


iShares US dollar Asia High-yield bond index ETF leads the pack with a 7.3% dividend yield

[SINGAPORE] Dividend plays are still important to many investors who seek steady payouts – especially when global markets remain volatile in recent times.

But with Treasury bill yields now just hovering above 1 per cent, and high dividend withholding taxes for US counters such as Nvidia and Tesla – where exactly should they look for positive yields?

Here are 15 high-dividend exchange-traded funds (ETFs) and stocks listed on the Singapore Exchange (SGX) to consider:

The top 15 SGX-listed ETFs offering dividends of 3% and more

The iShares US dollar (USD) Asia High-yield bond index ETF leads the pack with a 7.3 per cent dividend yield.

It seeks to track the investment results of an index composed of USD-denominated high-yield bonds issued by Asian governments and Asian-domiciled corporations.

Some of its top holdings include Nissan Motor and Internet services company Rakuten Group, based on data from FSMOne last Wednesday (May 13).

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A spokesperson from SGX noted that a couple of funds which offered dividend yields in the 3.7 to 5 per cent range were less actively traded.

Among them were the UOB Apac Green Real Estate Investment Trust (Reit) ETF, Phillip SGX Apac Dividend Leaders Reit ETF, and the Phillip Sing Income ETF.

The fund with the highest one-year return rate is the Amova Singapore Straits Times Index (STI) ETF – of about 33.5 per cent, with a dividend yield of 3.7 per cent.

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It beat that of the SPDR STI ETF’s return rate of 32.8 per cent over the same period – and its dividend yield of 3.2 per cent.

Other funds which have made it to the top 15 include the Lion-OCBC Securities China Leaders ETF, and the ICBC CSOP FTSE Chinese Government Bond Index ETF. They have dividend yields of 3 per cent.

High dividend yields from small, mid-caps, Reits

Certain SGX-listed counters can offer sizeable dividends of close to 10 per cent, based on data from SGX.

Reits, which occupy a significant portion of these plays, offer high dividend yields of 3 per cent minimally, with some displaying positive returns.

For example, United Hampshire Reit has an 8.3 per cent dividend yield and a 3.17 per cent year-to-date return, and Keppel Infrastructure Trust has a dividend yield of 7.4 per cent, and 13.2 per cent year-to-date return level.

Sasseur Reit offers the highest yield among the Reits at 9.2 per cent, and a year-to-date return of 2.54 per cent.

However, though the likes of ESR Reit , First Reit and Daiwa House Logistics Trust have yield levels above 8 per cent, they have seen negative year-to-date returns.

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Liam Redmond

As an editor at Forbes Europe, I specialize in exploring business innovations and entrepreneurial success stories. My passion lies in delivering impactful content that resonates with readers and sparks meaningful conversations.

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