Enjoy the Dividend “Rewards” of the Stock Market

June 9, 2023

When discussing investments, many often fixate on long-term retirement plans or the allure of making a quick fortune from the stock market.

However, there is another aspect of investing that seamlessly integrates with our everyday lives, and that is leveraging the “rewards” offered by the stock market.

This approach allows us to gain benefits from our routine transactions, thus amplifying our investments and contributing to our financial wellbeing.

Leverage everyday stock market “rewards”

Think about your go-to brands, the products, and services you purchase regularly.

These could range from banking services, grocery shopping at your favourite supermarket, your daily commute, or even your media and communications needs.

For instance, my sister who resides in Singapore, regularly use services from DBS Group Holdings Ltd (SGX: D05) and OCBC Ltd (SGX: O39).

She also often shops at her local Sheng Siong (SGX: OV8) outlet for groceries and necessities.

For commuting, many Singaporeans might be familiar with ComfortDelGro Corporation (SGX: C52), operating a large number of taxi services and public buses in Singapore.

Perhaps you are a regular consumer of media and news from Singapore Press Holdings (SGX: T39), or maybe you rely on telecommunications services from companies like Singtel (SGX: Z74).

Furthermore, you might regularly dine at Kimly Ltd’s (SGX:1D0) coffee shop or frequently visit Wilmar International (SGX: F34) for cooking oil and other pantry essentials.

And let us not forget about our weekend shopping activities. If you stay in Singapore, it is likely that you have shopped at popular malls such as Funan and Raffles City, which is owned and operated by retail and commercial REIT, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT.

For leisure, Genting Singapore Ltd (SGX: G13) has its famous Resorts World Sentosa (RWS) for some fun-filled activities during your weekend break.

The “rewards” of investing in the stock market

By now, you would have begun to notice that a significant portion of the services and products we utilise daily are provided by companies listed on the stock market.

The question now is, how can we transform these everyday expenditures into opportunities to benefit from the stock market’s “rewards”?

One of the compelling aspects of these listed companies is their consistent dividend payouts.

These dividends mirror the rewards system employed by e-commerce platforms, offering a “bonus” on your stock investments.

For instance, shares in DBS currently offer a 5.3% forward dividend yield while supermarket operator, Sheng Siong provides a 3.8% dividend yield.

Similarly, ComfortDelGro yields a decent dividend for investors.

Both CICT and Genting Singapore also distribute regular dividends of around 5.5% and 3.0% respectively.

Reap the dividend “rewards” and enjoy capital appreciation

The benefits of investing in stocks extend beyond just the dividends received.

As a shareholder, you also stand to gain from capital appreciation if the business performs well.

As dividend payouts increase over time, you also enjoy a larger cash windfall.

Instead of just being the consumer, it is time to own some of these businesses and reap the “rewards” together.

Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.

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Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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