April 2025 Update: Why Dividends Matter More Than Ever
Despite a 2.8% paper loss (-$12,000 SGD) in April 2025, I received $13,000 SGD in dividends, with $4,000 already deposited. This puts me on track for an estimated $20,000 SGD in passive income for 2025. This underscores the importance of dividends, particularly in times of economic uncertainty.
Dividends offer a tangible return on investment—cash directly deposited into your account. Unlike capital gains, which can fluctuate, dividends are secure once paid. Investing in dividend-paying stocks mitigates stress from daily market volatility, allowing investors to focus on consistent income streams. This stability is particularly valuable when navigating external economic headwinds such as tariff wars.
Furthermore, dividends from Singapore and Hong Kong-listed companies are tax-exempt in Singapore, having already been taxed at the corporate level. This tax advantage further enhances the appeal of dividend investing, especially when considering the potential impact of tariff wars on overall investment returns. The consistent, predictable income stream from dividends helps offset the risks associated with global trade tensions.
$NikkoAM-STC Asia REIT(CFA.SI)$
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