wutawa
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It is better than s&p500 ytd.
STI ETF
- Thread starter digitalguy
- Start date
$0.051 dividend payable on 25 Feb, XD on 11 Feb.
https://links.sgx.com/FileOpen/STI ... Q1_final.ashx?App=Announcement&FileID=701032
https://links.sgx.com/FileOpen/STI ... Q1_final.ashx?App=Announcement&FileID=701032
audiovideo
Arch-Supremacy Member
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Seems like notch bad
May I remind everyone: If you buy STI ETF now, the annualised dividend yield is 2.4%. The higher STI price, the lower the dividend yield will be.
Dividend on CPF-OA is 2.5%, risk-free. No gap down risk, no capital loss. Sleep soundly at night.
To exceed 2.5%, you should have bought STI ETF earlier at 3.27 or lower (including transaction costs). I think it should be 3.15 or lower (to give 2.6% yield) because there is risk of sell down (like during Omicron news and Delta lockdowns), and you need time to get out.
Dividend on CPF-OA is 2.5%, risk-free. No gap down risk, no capital loss. Sleep soundly at night.
To exceed 2.5%, you should have bought STI ETF earlier at 3.27 or lower (including transaction costs). I think it should be 3.15 or lower (to give 2.6% yield) because there is risk of sell down (like during Omicron news and Delta lockdowns), and you need time to get out.
In February 2021, STI ETF only paid out $0.04 dividend. If you calculate dividend yield by mixing 2021 dividend and 2022 price, the dividend yield will be 2.4%
In February 2022, STI ETF is paying out $0.051 dividend, a 25% increase in dividend.
Using 2022 dividends and 2022 price, and considering the NIM for the 3 banks that make up the index, I would forecast STI ETF 2022 dividend yield to be 2.9%-3.0%. How much of that will be erased by inflation, is anybody's guess
Forecasting 0.051 dividend forever is an investing mistake.In February 2021, STI ETF only paid out $0.04 dividend. If you calculate dividend yield by mixing 2021 dividend and 2022 price, the dividend yield will be 2.4%
In February 2022, STI ETF is paying out $0.051 dividend, a 25% increase in dividend.
Using 2022 dividends and 2022 price, and considering the NIM for the 3 banks that make up the index, I would forecast STI ETF 2022 dividend yield to be 2.9%-3.0%. How much of that will be erased by inflation, is anybody's guess
What economics sustain the dividend yield? Growth in Singapore GDP, corporate revenue, Singapore innovation (local or foreign investment-led), increased foreign investment, new 10million population target?
From what I see, with SG Govt need to replenish the spent reserves through increased Govt taxes on society (GST, hiking ABSD) and reduced Govt spending (not sure) which will have a net effect of reducing the money that goes to investors. I see no significant growth in Singapore GDP and corporate revenues in 2022 as the withdrawal of Govt support schemes counteract any potential increase in corporate revenues from reopening.
To me, it looks like an algo-driven price pushup in Singapore stock index to reach a new higher fair future valuation that is yet to come. What do these speculators know that I don't know?
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You mentioned dividend yield of STI is 2.4% if you buy now but you made the mistake of mixing 2022 price with 2021 dividend.
The dividend yield of the STI if you buy now is the dividend you collect in 2022, not the dividend investors collected in 2021.
I'm forecasting 2.9%-3.0% dividend yield for 2022 if you buy now based on 2022 dividend. End of year can see which one is more accurate.
I wouldn't be buying STI now, especially if World index is correcting which makes VWRD etc a more attractive buying opportunity this year. But for those that want to buy and want to know how to calculate dividend yield, they can look at the analysis above and decide which calculation they want to use, though I hope investors realise that the market is forward looking, not backward looking
ALright, means you also don't know, which means none of us have a clue about what's in store for Singapore in 2022. Then STI is now entering trader's market (buy high, sell higher), not an investor's market. There are only some pockets of undervalued sectors left.You mentioned dividend yield of STI is 2.4% if you buy now but you made the mistake of mixing 2022 price with 2021 dividend.
The dividend yield of the STI if you buy now is the dividend you collect in 2022, not the dividend investors collected in 2021.
I'm forecasting 2.9%-3.0% dividend yield for 2022 if you buy now based on 2022 dividend. End of year can see which one is more accurate.
I wouldn't be buying STI now, especially if World index is correcting which makes VWRD etc a more attractive buying opportunity this year. But for those that want to buy and want to know how to calculate dividend yield, they can look at the analysis above and decide which calculation they want to use, though I hope investors realise that the market is forward looking, not backward looking
I bought lots of it during 2020. Based on the price I bought, my yield is 4%+.
Is not a good time to buy STI. Should buy World Index as it is correcting while STI is holding the fort
lol if someone knows in advance which way the stock market is going, he should be billionaire/trillionaire already. However, I have a reasonable idea when something is undervalued and on sale. That's the best time to buy
should let go those bought in 2020?
if bought with cpf OA, the capital gain is good enough to double cpf oa interest for 10 years for the amount used
Yes, we should look at forward yield, not backward. Last year's yield for STI was hit by the full impact of Covid. It is not as difficult to forecast the yield for STI ETF as for stocks. Where does STI get money to pay dividends? From the dividends of the underlying stocks. These STI components are now declaring their FY results. Most of them are declaring yoy increase in dividends, payable in the next two months, so it is not difficult to project the dividends of STI in the second half of 2022.
don't think of it as 4%. It will lead you to a false security of not selling. STI ETF can oscillate between 3+ and 2+ every few years.
On 11 Feb 2020, STI ETF paid 5.2 cents (equivalent to 3.3% annualised yield). Don't tell me that you wish to hold STI ETF as it went on to crash 28%. Dividend yield is a lagging indicator. It also gives false sense of security.
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