Investing in Singapore Dividend Stocks using Cash, CPF-OA, and SRS: A Comprehensive Guide

by | Apr 13, 2024 | Invest During Inflation | 14 comments

Investing in Singapore Dividend Stocks using Cash, CPF-OA, and SRS: A Comprehensive Guide




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0:00 – Intro
0:00 – Criterias for choosing good dividend stocks
0:00 – Singapore dividend ETFs
0:00 – How to invest cash, CPF-OA and SRS in dividend stocks and ETFs
0:00 – Robo advisor dividend portfolios
0:00 – Conclusion

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Investing in dividend stocks in Singapore is a great way to build a source of passive income over time. Dividend stocks are companies that distribute a portion of their earnings to shareholders in the form of dividends. These dividends can provide a steady stream of income, making them an attractive investment option for those looking to grow their wealth.

There are several ways to invest in Singapore dividend stocks, including using cash, CPF-OA (Central Provident Fund – Ordinary Account), and SRS (Supplementary Retirement Scheme). Each of these methods has its own benefits and considerations, so it’s important to understand them before making any investment decisions.

Investing with Cash
The most straightforward way to invest in Singapore dividend stocks is to use your own cash. This method gives you the flexibility to choose which stocks to invest in and when to buy or sell them. You can also reinvest your dividends to compound your returns over time.

Before investing with cash, it’s important to do your research and choose dividend stocks that have a track record of stable or increasing dividends. Look for companies with strong financials, a history of paying dividends consistently, and a sustainable business model. Additionally, diversifying your investment portfolio across different sectors and industries can help reduce risk.

Investing with CPF-OA
Another option for investing in Singapore dividend stocks is to use your CPF-OA. The CPF-OA is a retirement account that Singaporeans and permanent residents can use to invest in various investment products, including stocks.

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To invest in dividend stocks using your CPF-OA, you will need to open a CPF Investment Scheme (CPFIS) account and meet the minimum investment amount. You can choose from a selection of approved stocks listed on the Singapore Exchange (SGX) and manage your investments through the CPFIS platform.

It’s important to note that investing with CPF-OA funds comes with certain restrictions and limitations, such as the need to maintain a minimum balance in your CPF-OA account and restrictions on the types of stocks that can be traded. Before investing with your CPF-OA, be sure to understand the rules and regulations governing the CPFIS.

Investing with SRS
The Supplementary Retirement Scheme (SRS) is another option for investing in Singapore dividend stocks. The SRS is a voluntary savings scheme that allows Singaporeans and permanent residents to save for retirement while enjoying tax benefits.

With the SRS, you can invest your contributions in a wide range of investment products, including stocks. You can choose from a selection of approved stocks listed on the SGX or invest in unit trusts, bonds, and other financial instruments.

Investing with SRS funds offers tax benefits, such as tax relief on your contributions and tax-free investment gains. However, there are limitations on how and when you can withdraw your SRS investments, so it’s important to consider your retirement goals and timeline before making any investment decisions.

In conclusion, investing in Singapore dividend stocks with cash, CPF-OA, and SRS are all viable options for building a passive income stream over time. Each method has its own benefits and considerations, so it’s important to understand the rules and regulations governing each before making any investment decisions. By doing your research and diversifying your investment portfolio, you can create a solid foundation for long-term financial growth and stability.

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14 Comments

  1. @KelvinLearnsInvesting

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  2. @weideliu2878

    Possible to make a video share the pro and cons of using OCBC and DBS banking, invest option of buying ETF and bond. Thank you

  3. @M43782

    Dividends are not free money. Dividends are not income. Dividends are tax ineffective if taxed. Dividends are just forced sell of part of a stocks.

  4. @zraiderz

    hi sir. please do a video on how to invest in overseas dividend stocks / dividend ETF too!

  5. @Xamael666

    STI = Super Terrible Index as Mr Loo says lol…maybe u should do a complete video of why it's not

  6. @ysx7

    After investing in US market for the past 3 years, I have decided to invest in SG dividend.

  7. @LionelOng-rx4xt

    There's no capital gains tax in Singapore already ma

  8. @BUY_YOUTUB_VIEWS_763

    You've got a natural talent for making complex topics accessible and engaging.

  9. @superconnie5003

    Singapore Reits suffer capital loss divd cannot cover.CICT was 2.30 now depress to 1.98 for few years

  10. @Don96497

    WeBull is more ex than Poems Cash Plus account, since it charges a slew of SGX charges like clearing, trading, settlement plus platform fees… For example, you’ll have to pay about $2.55 for 100 units of CFA which totals $81 trade value. Poems Cash Plus only charges 0.06-0.08%?commission plus GST with no min charge. Check again

  11. @64ytb

    How to calculate dividend payout rate in dollar using divdend yield? What’s the formula? Or is there other ways to do so?

  12. @ippikioomaki

    Besides SPDR STI ETF (ES3) & Lion-Phillip S-REIT ETF (CLR), my 3rd SG dividend ETF is iShares USD Asia High Yield Bond ETF (O9P).

  13. @forwork2601

    Can you do a video on how to build a large position in dividend stocks?

  14. @neutraluser4019

    Nice, a review on the cheapest broker for USD20 US fractional shares on weekly DCA/RSP ?

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