“Singapore’s yield premium is a structural feature of its market,” he adds. The Singapore Exchange (SGX), he explains, is heavily weighted towards REITs, infrastructure trusts, utilities, banks and mature industrials, which are sectors that “lend themselves to stable cash flow generation and consistent dividend distributions.”
Singapore has long been regarded as a haven for income investors, thanks to its stable regulatory environment and a consistent stream of dividend-paying stocks.
While most global markets tend to focus on capital appreciation, Singapore has consistently offered “superior dividend yields” compared to its Asean peers and the broader MSCI Asia ex-Japan Index, notes Aletheia Capital’s Nirgunan Tiruchelvam.
