Singapore is going to play host to a slew of concerts in the coming months.
There are few performances bigger than rock band Coldplay and international superstar Taylor Swift; both have selected Singapore to play a total of six nights each.
Not to be outdone, Mandopop “king” Jacky Cheung went one up, pencilling in a total of 11 shows later this month and in early August.
Here’s the rub.
If you are a fan and are planning to attend these concerts, you will need to have a sizable stash of cash.
Such events do not come cheap, with VIP packages for Taylor Swift hitting S$1,228 and the most expensive tickets for Jacky Cheung and Coldplay coming in at S$388 and S$298, respectively.
Despite the high prices, the hype is real.
Almost all of us have read about the long overnight queues at Singpost for Taylor Swift’s tickets.
If you’re like me, and love attending live performances, then the cost for attending all 3 of the concerts above can add up.
When I’m in the virtual queue for Taylor Swift’s concert, I don’t want to be worrying (too much) about the cost of a ticket.
And that’s where my steady stream of dividends income comes in handy.
For me, dividends provide the extra cash for the little luxuries we enjoy in life.
Dividend-paying stocks
In Singapore, dividends represent a stream of passive income which are non-taxable in the hands of the shareholder.
It’s a stream of income which delivers cash into your hands, if you do it right.
Take DBS Group (SGX: D05) for instance.
Singapore’s largest bank paid out a quarterly dividend of S$0.42 for its latest quarter.
Owning just 200 shares of the lender, costing around S$6,300, will deliver S$84 every three months at its current dividend level.
Wait, there’s more.
Mapletree Logistics Trust (SGX: M44U) doled out a distribution per unit (DPU) of S$0.02268 for its latest fourth quarter, taking its DPU tally for its fiscal 2023 to S$0.09011.
Owning 5,000 units of the REIT will cost you S$8,100, and will also help to bring in S$450 every year.
If you are looking for other REITs or companies that pay out quarterly dividends, there is also UMS Holdings (SGX: 558), Mapletree Industrial Trust (SGX: ME8U) and Suntec REIT (SGX: T82U).
Cash to use as you please
While the amounts may not sound like a lot, the beauty of investing is that you can slowly scale up the investment sum.
If you are just starting your career and have less savings, you can choose to invest just S$5,000 or S$10,000 of your money.
The dividends you received will amount to S$500 if you enjoy a 5% yield on S$10,000.
The beauty of it is that you can choose to use this cash any way you please, be it on a Coldplay concert or a vacation of your choice.
And as you steadily compound your wealth and allocate more money to your portfolio, your flow of dividends will naturally increase.
Having the means to enjoy yourself
Every one of us could do with a little pampering every now and then.
Taking a break via a holiday or jamming to your favourite rock band are some great ways to unwind.
With dividends in hand, you now have the means to enjoy yourself without dipping into your savings and feeling guilty about overspending.
The key is to look for more dividend-paying stocks to park your money in so that these stocks can generate a consistent stream of passive income for you to continue enjoying life.
What’s more, these dividends can also help you to maintain your current lifestyle once you retire.
At The Smart Dividend Portfolio, we have curated a portfolio of 26 Singapore dividend-paying stocks.
All of them pay out a reliable dividend while some have enticing growth prospects that can help to lift your investment portfolio higher over the years.
If you’re looking to invest in 2023, our latest FREE report can guide you. It shows you how to find dividend stocks in SGX, and a nearly fool-proof way of building your portfolio. Many people love dividend investing, but few truly know how to profit from it consistently. Click the link here to download our new report and discover the secrets!
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Disclosure: Royston Yang owns shares of DBS Group, Suntec REIT and Mapletree Industrial Trust.
