1) Dividends in SG are generally more "subdued" Ranging avg 3-4% with some at 7%-8% when you get at lower prices. Dividends in US, some will say there is a 30% withholding tax on dividends so if you get 8%, you get around 5.6%.
2) Pertaining to pt1, you can however find 9-10% dividend stocks in US and also as high up as 20%. I have gotten 30+% before too when the stock IPO. But it doubled within a year and I forgo the 30% dividend.
3) Some will say currency exchange erodes US investment. But always remember US currency will never stay low forever nor SG currency will stay strong forever. It will be a question where only the future will tell you the answer.
4) Dividends in US pay out quarterly with some paying monthly. Most in Sg pay out annually or bi-annually or even some pay our quarterly.
100,000 SG investment. bi annually 5% is 1st 1/2 of yr get $2500, 2nd 1/2 of yr get $2500
100,000 US investment quarterly 5% is every quarter $1250
5) Pertaining to pt 4, if you recompound your dividend, in SG is tricky because its in 1 lot of 1000
So if you buy $50,000 and 1 lot is $2.50, total you have 20 lots. 20 lots will get you $1250 every 1/2 yr, but you cannot recompound immediately as your $1250 dividend cannot be re-invested due to 1 lot is 1000 and share price is $2.50. So you either top up $1250 or you wait till 2nd half of yr
in US,
in US $50000 1 lot is $2.50, total there is 20000 lots. it will still get you $625 in the 1st quarter and you can immediately buy another 250 lots if you wish to re-invest your dividend.
6) In US there are quite a few counters which increase their dividend payout for more than 20 years every year. SG I haven't heard of such stuff yet.
7) Most books which talk about dividend recompounding are written by US authors on US stocks. In local there are few ( I try not to say none). Either local SG don't have such a culture or most people make their money from capital gain more than dividends.
Of course in SG if you wish to get more dividends, instead of waiting for dividend recompounding, the fastest way is to use your own savings and buy more of such a dividend stock.
The essence of dividend recompounding is not so much on the percentage or amount of payout. It is still the amount of stocks you hold that counts.
Someone who invest 10,000 in a stock and waits for recompound vs another who invest 10,000 every month into the stock will see an exponential return for the latter because his stock holdings have increased greatly.
Because only when your stock holdings increase, will your dividends amount increase exponentially ( provided % of payout remains or increase)
