Do Singapore ETFs pay dividends?

Dividends refer to payments made by companies to their shareholders, typically out of the company’s profits. Companies will often declare and pay dividends quarterly. Some companies also have special dividend payments that they occasionally make, such as when they have extreme profits in a given year.

Singapore ETFs are exchange-traded funds that track the performance of an underlying index or basket of assets. ETF trading occurs on the Singapore stock exchange and can be bought and sold like any other stock. Many Singapore ETFs offer exposure to international markets, which can help diversify one’s portfolio.

Yes, some Singapore ETFs do pay dividends. However, it is essential to note that not all ETFs will pay dividends, and the number of dividend payments can vary significantly from one ETF to another. For example, some ETFs may only pay out dividends yearly, while others may do so quarterly. Furthermore, the amount of the dividend payments will depend on the underlying assets held by the ETF and the current market conditions.

How can I claim dividend payments from a Singapore ETF?

Check the fund’s factsheet to see if it pays dividends

The first step is to check the fund’s factsheet to see if it pays dividends. The factsheet will provide information on the fund’s strategy, performance, risk level, and other vital details. It should also list whether or not the fund pays dividends and, if so, how often these payments are made.

Determine the ex-dividend date

The ex-dividend date is when a stock becomes ineligible for a dividend payment. For example, assume that a company has a share price of SGD100 and declares a quarterly dividend of SGD1 per share. You will not receive the dividend if you buy shares on or after the ex-dividend date. However, if you buy shares before the ex-dividend date, you will be entitled to the dividend payment.

The ex-dividend date for a Singapore ETF is typically several days before the actual dividend payment date because it takes time for the fund to sell its assets and generate the cash needed to make the dividend payments.

Buy shares of the ETF before the ex-dividend date

If you want to receive a dividend payment from a Singapore ETF, you must purchase shares of the ETF before its ex-dividend date. After doing this, the fund will add your name to its shareholder register, and you will be entitled to receive dividends when they are paid out.

Hold onto your shares until the dividend payment date

Once you have purchased shares of a Singapore ETF, you will need to hold onto them until the dividend payment date to receive the dividend payment. On this date, the fund will distribute the dividends to shareholders on the fund’s shareholder register.

Step 5: Sell your shares after receiving the dividend payment

Once you have received the dividend payment, you are free to sell your ETF shares if you wish. However, it is essential to remember that dividends are not guaranteed and can fluctuate significantly from one year to the next. As such, you should always consult a financial advisor before making investment decisions.

Which ETFs pay dividends in Singapore?

iShares MSCI Singapore ETF (EWS)

The iShares MSCI Singapore ETF tracks the performance of the MSCI Singapore Index. This index is made up of large and mid-sized companies that are listed on the Singapore stock exchange. The fund pays dividends quarterly, with payments typically occurring in March, June, September, and December.

SPDR Straits Times Index ETF (ES3)

The SPDR Straits Times Index ETF tracks the performance of the Straits Times Index, which comprises 30 large companies listed on the Singapore stock exchange. The fund pays dividends quarterly.

ABF Singapore Bond Index Fund (A35)

The ABF Singapore Bond Index Fund tracks the performance of the FTSE SGD Corporate Bond Index. This index is made up of investment-grade corporate bonds that are issued in Singapore dollars. The fund pays dividends monthly.

Lion-Phillip S-REIT ETF (CFA)

The Lion-Phillip S-REIT ETF tracks the performance of the FTSE ST Real Estate Investment Trusts Index. This index is made up of 30 real estate investment trusts that are listed on the Singapore stock exchange. The fund pays dividends quarterly.