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$10,000 Dividend Income Per Month: Here's How Much You Need To Invest!

profileMing Feng

Your 5Cs Singaporean Dream? Outdated.

Forget the typical 5Cs (car, cash, credit card, condominium and country club membership) that were commonly used to determine how successful Singaporeans were in life.

Allow me to present to you the cold hard truth.

The new Singaporean Dream is… TO SURVIVE!

Source: Giphy

With crazy car prices, expensive property prices (don’t even need to look at condos), rising food prices…

A Singaporean’s evolved goal in life is to generate enough passive income and retire early.

How?

One of the many ways is to build a dividend income portfolio and take one step closer to achieving financial freedom!


TL;DR: How Much Do You Need to Invest to Have a Sustainable Dividend Income Portfolio?


What Is a Dividend Income Portfolio?

What exactly is a dividend income portfolio, and what is all the hype about?

Dividend stocks are stocks that give dividend payouts based on their profits over the year. Should an investor invest in a dividend stock, he receives income in the form of dividends given out by the stock.

Source: Giphy

Imagine this: Your stocks portfolio gives you enough every year to a point where you no longer have to depend on your salary for your expenses.

That is the goal of every investor, and this is how you can build a dividend income portfolio:

  • Certain stocks give dividend payouts based on their profits over the year.
  • Investors can use their prefered method to identify and screen out solid stocks and investment instruments to invest in.
  • From there, investors will build their investment portfolios.
  • The objective is to build an investment portfolio which can cover your expenses.
  • Once that objective is achieved, financial freedom may not be too far away!

Dividend Investing – How Much Should You Be Investing?

Before you start building your portfolio, it’s important to understand what exactly dividend investing is all about.

And you’ll need to identify how much you want your investment portfolio to fetch you every month.

Here are some of the numbers we used for better estimation of the amount needed:

  • Basic monthly expenses for Singaporeans after retirement is at $1,200 per month.
  • Median gross monthly income of a typical Singaporean worker at $4,680 per month.
  • The average household spend on goods and services in Singapore is $4,906 per month (based on a 2018 survey).
  • The median household income per month in Singapore is $8,220 per month.
Monthly DividendTotal dividend required per year
$500$6,000
$1,000$12,000
$1,200
(Monthly expenses for Singaporeans after retirement)
$14,400
$2,000$24,000
$4,680
(Median gross monthly income)
$56,160
$4,906
(Average household spend per month)
$58,872
$8,220
(Median household income per month)
$98,640
$10,000$120,000
$12,000$144,000

With the total dividend we aim to achieve annually in mind, we worked backwards to find out the percentage of dividend yield and the size of the portfolio needed.

What is the Dividend Yield?

The dividend yield is the percentage of a company’s dividend compared to its share price.

It can be calculated using:

Dividend Yield = (Annual Dividend)/ Share Price * 100%

How Much Does Your Portfolio Need to Be?

For better illustration, we’re looking at a dividend yield of at least 3%.

Anything below the interest rate of the Singapore Savings Bond (SSB) makes no sense for the risk that you will be taking.

Total dividend required per yearPortfolio size with X% dividend yield
3%5%6%7%8%
$6,000$200,000$120,000$100,000$85,714.29$75,000
$12,000$400,000$240,000$200,000$171,428.57$150,000
$14,400$480,000$288,000$240,000$205,714.29$180,000
$24,000$800,000$480,000$400,000$342,857.14$300,000
$56,160
(Median gross monthly income)
$1,872,000$1,123,200$936,000$802,285.71$702,000
$58,872
(Average household spend)
$1,962,400$1,177,440$981,200$841,028.57$735,900
$98,640
(Median household income)
$3,288,000$1,972,800$1,644,000$1,409,142.86$1,233,000
$120,000$4,000,000$2,400,000$2,000,000$1,714,285.71$1,500,000
$144,000$4,800,000$2,880,000$2,400,000$2,057,142.86$1,800,000

Few things to take note of, when it comes to dividend investing:

  • A company with the highest dividend yield may not necessarily mean that it is the safest investment.
  • The above demonstrates that to achieve that amount of dividend, you need to have a good amount of savings first.
  • You’ll have to take into account the effects of inflation on your future expenditure, which has been rising rapidly in recent months.
  • The faster you manage to achieve the above where your dividend yield income exceeds your expenses, the sooner you will achieve financial freedom!

Seriously, we cannot emphasise enough on the importance of starting early and making use of the power of compounding to achieve financial freedom faster.

However, do not chase dividend yields as it alone is not the best indicator of whether you should add a particular stock or share counter to your portfolio.

Not all high dividend-paying stocks are good investments.

It is important to understand why they are able to pay such high dividends, and whether these dividends are sustainable for the companies as well.

As with any form of investment, you need to do your due diligence before putting your hard-earned money in.

Once you’ve done your homework, you’ll then be able to start building your portfolio to give yourself a headstart towards early retirement.

Some Examples of Share Counters and Their Dividend Yields

The total dividend yield of your portfolio depends on the amount one invests in each stock and the dividend yield of these stocks.

To list down some of the stocks and their dividend yield.

Note: data is correct as of 13 June 2022.

For stocks in SGX with a dividend yield of 3-4%:

Company NameTrading CodeP/EYield (%)
Aedge GroupXVG-3.77
Ascott TrustHMN12.183.7
Asia Vets5RE-3.08
AvargaU093.033.5
BHG Retail ReitBMGU37.573.95
Brook CromptonAWC8.263.23
CapitaLandInvest9CI8.223.15
CapLand IntCom TC38U13.443.89
CivmecP9D7.93.08
Don AgroGRQ3.643.41
F & NF9916.153.68
Far East HTrustQ5T9.893.36
First ResourcesEB514.773.02
Food EmpireF0310.593.06
FrenckenE288.383.59
GKE5958.883.96
Great EasternG078.563.23
GuocoLandF179.523.82
Ho Bee LandH135.573.61
Hosen5EV7.543.57
InnoTekM1410.283.92
ISEC40T21.783.39
Jardine C&CC0712.573.7
JB FoodsBEW7.863
JMH USDJ368.33.76
Kimly1D011.513.68
Micro-Mechanics5DD23.023.87
NordicMR711.193.47
OKP5CF37.533.78
Old Chang Kee5ML13.523.01
OTS HoldingsOTS46.283.04
PanUnitedP5215.343.9
Penguin IntlBTM10.513.72
SGXS6825.073.31
Sing PaincareFRQ9.013.75
ST EngineeringS6322.043.49
TCIL HK$T1510.123.42
ToseiS2D7.33.39
VICOM LtdWJP29.183.08
Wilmar IntlF349.893.76

For stocks in SGX with a dividend yield of 4-5%:

Company NameTrading CodeP/EYield (%)
Ascendas ReitA17U11.854.94
Asia EnterprisesA5515.024.88
Asian Healthcare1J316.724.46
BousteadF9D4.134.69
BRC AsiaBEC6.464.73
Bumitama AgriP8Z8.035
Chip Eng SengC29-4.76
Chuan HupC3337.634.55
DBSD0511.824.47
DelfiP3411.174.23
Frasers Cpt TrJ69U20.764.41
Hock Lian SengJ2T5.44.72
Hong Leong FinS4112.784.96
HongkongLand USDH78-4.67
HRnetGroupCHZ10.84.26
IFS CapitalI498.894.15
IREIT Global SGDUD1U3.264.7
Jason Marine5PF4.39
Keppel CorpBN412.074.9
Keppel ReitK71U18.574.5
LHTBEI8.544.26
Low Keng HuatF1E16.884.21
Lum ChangL1919.884.49
Mapletree Com TrN2IU17.324.24
Mapletree Ind TrME8U14.684.88
Mapletree NAC TrRW0U233.924.17
MegaChem5DS7.734.44
MeGroupSJY-4.14
MoneyMax Fin5WJ4.474.75
Nam Lee MetalG0I5.474.23
Natural Cool5IF-4.67
Nomura Yen1kN3310.514.6
OCBC BankO3910.874.56
PECIX26.274.27
Sheng SiongOV816.774.08
Spindex Ind5645.794.37
Suntec ReitT82U10.974.52
SUTL EnterpriseBHU8.124.3
TalkMed5G320.344.16
TIHT555.174.26
TTJK1Q21.424.73
UMS55814.444.17
Uni-Asia GrpCHJ3.664.24
UOBU1111.974.21
VentureV0316.124.35
Wong Fong Ind1A112.014.71

For stocks in SGX with a dividend yield of 5-6%:

Company NameTrading CodeP/EYield (%)
AIMS APAC ReitO5RU10.815.98
AP Oil5AU10.325.81
Audience1AZ-5.04
AVJennings A$A059.515.8
Aztech Gbl8AZ8.565.88
Ban LeongB265.865.68
Broadway IndB695.75.38
Bund CenterBTE31.125.88
CaptiiAWV1.665.32
CDWBXE20.215.76
Challenger57310.955.09
Choo Chiang42E8.855.48
CosmoSteelB9S18.25.07
CSE Global54416.175.85
Figtree5F4-5.26
Frasers L&C TrBUOU5.455.58
Global InvB7316.45.26
Golden Agri-ResE5H5.275.84
Japan Foods5OI42.75.42
KSHER018.915.88
Lendlease ReitJYEU27.785.36
LHN41O4.465.16
Mapletree Log TrM44U9.75.09
Multi-ChemAWZ6.715.97
NeraTelN01-5.68
NetLink NBN TrCJLU42.75.13
NSLN0264.525.95
OUE Com ReitTS0U64.975.83
Overseas EduRQ115.085.65
QAFQ0122.015.88
Sabana ReitM1GU9.735.63
Secura43B11.155.88
Serial SystemS697.125.45
Sing Inv & FinS357.275.52
Singapore O&G1D815.965.54
StarhillGbl ReitP40U21.325.68
StarHubCC315.195.2
Tai Sin Electric50023.125.84
Tat Seng PkgT124.855.56
UOB Kay HianU108.375.87
ValueMaxT6I5.425.45
YZJ Shipbldg SGDBS64.515.62

For stocks in SGX with a dividend yield of 6-7%:

Company NameTrading CodeP/EYield (%)
Ascendas-iTrustCY6U6.776.9
CasaC046.686.67
Combine WillN0Z3.556.29
Fu YuF1311.136.35
Kep Infra TrA7RU83.846.81
Lippo Malls TrD5IU-6.67
MedinexOTX7.597
PNE IndustriesBDA-6.29
Q&M DentalQC717.126.47
Sarine TechU776.886.24
ThakralAWI4.786.35
Transit Concrete5705.366.9
ValuetronicsBN26.956.49
Yanlord LandZ253.816.3

For stocks in SGX with a dividend yield of 7-8%:

Trading NameTrading CodeP/EYield (%)
AnnAikA528.387.78
Asian Pay Tv TrS7OU9.677.52
AspialA30-7.5
CapLand China TAU8U16.767.79
China EverbrightU9E3.967.46
Hafary5VS7.437.5
New ToyoN0810.347.85
PropNexOYY10.517.44
Shopper3601F08.437.76
SIIC EnvironmentBHK3.557.32
Soilbuild ConstS7P-7.35
Stamford TyresS2929.317.14
Sysma5UO8.757.83
World PrecisionB499.537.25
YHI IntlBPF6.727.35

If you’re wondering how we got the above information, we used the Singapore Exchange Limited’s Stock Screener and sorted the information with the ‘Dividend Yield’ filter.


Have some tips on tricks to building your own dividend income portfolio? Head over to the Seedly Community to discuss!

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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