Question 1

Are REIT dividends taxable in Singapore?

Accepted Answer

Singapore REITs (S-REITs) pay distributions, not dividends. For Singapore individual residents, REIT distributions are generally tax-exempt — you receive them gross with no additional tax to pay. However, if you hold REITs through a corporate structure or are a non-resident, different tax treatment applies.

Question 2

What is a good dividend yield for Singapore REITs?

Accepted Answer

S-REIT yields have historically ranged from 4% to 8% p.a. depending on the sector and market conditions. Industrial and data centre REITs (like Mapletree Logistics, Keppel DC REIT) tend to yield 4–6%. Retail and commercial REITs (like CapitaLand Integrated Commercial Trust) yield around 5–7%. Higher yields may indicate higher risk or special distributions.

Question 3

What is the STI ETF dividend yield?

Accepted Answer

The Straits Times Index (STI) ETF, tracking Singapore's top 30 companies, has historically yielded around 3.5–4.5% p.a. This is considered a baseline for Singapore equity dividend yields. STI ETF can be bought through regular savings plans (RSP) at DBS/OCBC/UOB or through brokerage accounts.

Question 4

Should I reinvest dividends (DRIP) or take cash?

Accepted Answer

Reinvesting dividends (DRIP) accelerates portfolio growth through compounding — over 20–30 years, the difference is substantial. Cash dividends provide income for expenses or flexibility to invest elsewhere. For long-term wealth building, DRIP is generally recommended. For retirement income generation, cash dividends are preferred.

Question 5

What is 'yield on cost' and why does it matter?

Accepted Answer

Yield on cost (YOC) is your current annual dividend income divided by your original purchase price. For example, if you paid S$1.00 for a stock and it now pays S$0.08/share in dividends, your YOC is 8% even if the current yield based on market price is only 4%. YOC grows as companies increase dividends over time, rewarding long-term holders.

Stock / REIT	Approx Yield
STI ETF (avg)	3.80%
CapitaLand Integrated Commercial Trust	5.50%
Mapletree Logistics Trust	6.20%
Parkway Life REIT	3.80%
Frasers Centrepoint Trust	5.90%
Keppel DC REIT	4.60%

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