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SG20 index offers higher dividend yields amid relative stability

SG20 index offers higher dividend yields amid relative stability

The SG20 index tracks the underlying MSCI Singapore Index.

And this stock index, which was just launched across our platforms earlier this month, may be ripe for dividend hunters!

Over the next 12 months, the SG20 index's dividend yield is forecasted to reach 4.9%, from the current 4.7%.

This is the highest dividend yield offered by any stock index across our platforms!

NOTE: The % dividend yield number tells an investor how much money they'll get for holding on to an asset. The higher the yield, the greater the returns.


What is this SG20 index?

Firstly, a stock index measures the overall performance of a "basket" of stocks.

The SG20 index tracks the underlying MSCI Singapore index, which measures the share price performances of a "basket" of 22 large and mid-sized companies listed on the Singapore stock exchange.

Those 22 stocks combine to account for about 85% of the entire Singaporean stock market.

Note also that some of the largest Singaporean banks - namely DBS Group, OCBC Bank, and UOB - already account for 48% of the total index.

And given that the banking sector makes up the bulk of this MSCI Singapore index, then those relatively higher yields should come as no surprise.


How does SG20 tend to behave?

  • Over the past 30 days, the SG20 index has been the least volatile Asian stock index across our platforms.
    (30-day volatility reading of 10.8)

  • So far this year, the SG20 index has climbed by 1.1%, outperforming the Straits Times index (down 2% year-to-date), with the latter being Singapore's benchmark index.

    However, the SG20 index's 1.1% advance pales in comparison to the year-to-date performances of the US500 (+8.6%) and the EU50 (+10.4%).

In short, relatively stable.


Is the SG20 stock index headed up or down?

Over the next 12 months, professional analysts predict that the SG20 stock index could rise by a further 14.2% to get to within reach of the 330 mark.

If so, that would be its highest levels since April 2022.

As long as the Singaporean economy can avoid recession risks, amid global headwinds, that should create a conducive environment for traders who prefer less-volatile conditions, while collecting higher dividends along the way.




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