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● Your 5Cs Singaporean Dream? Outdated. Forget the typical 5Cs (car, cash, credit card, condominium and country club membership) that were commonly used to determine how successful Singaporeans were in life. Allow me to present to you the cold hard truth. The new Singaporean Dream is… ! With , expensive property prices (don’t even need to look at condos), rising food prices… A Singaporean’s evolved goal in life is to How? One of the many ways is to build a  and take one step closer to achieving financial freedom! Jump to: What exactly is a dividend income portfolio, and what is all the hype about? Dividend stocks are stocks that give dividend payouts based on their profits over the year. Should an investor invest in a dividend stock, he receives income in the form of dividends given out by the stock. Imagine this: Your stock portfolio gives you enough every year to a point where you no longer have to depend on your salary for your expenses. That is the goal of every investor, and this is how you can build a dividend income portfolio: Before you start building your portfolio, it’s important to understand what exactly is all about. And you’ll need to identify how much you want your investment portfolio to fetch you every month. Here are some of the numbers we used for a better estimation of the amount needed: With the total dividend we aim to achieve annually in mind, we worked backwards to find out the percentage of dividend yield and the size of the portfolio needed. The is the percentage of a company’s dividend compared to its share price. It can be calculated using: For better illustration, we’re looking at a dividend yield of at least 3%. Anything below the interest rate of the makes no sense for the risk that you will be taking. Few things to take note of, when it comes to dividend investing: Seriously, we cannot emphasise enough the importance of starting early and making use of the to achieve financial freedom faster. However, do not chase as it alone is of whether you should add a particular stock or share counter to your portfolio. Not all high dividend-paying stocks are good investments. It is important to understand why they can pay such high dividends, and whether these dividends are sustainable for the companies as well. As with any form of investment, you need to do your due diligence before putting your hard-earned money in. Once you’ve done your homework, you’ll then be able to start building your portfolio to give yourself a headstart towards . Aside from your dividend income, don’t forget that you would also have to supplement your retirement income. So do consider that as a part of your portfolio as well! The total dividend yield of your portfolio depends on the amount one invests in each stock and the dividend yield of these stocks. To list down some of the stocks and their dividend yield. Note: data is correct as of 4 July 2024. If you’re wondering how we got the above information, we used the Singapore Exchange Limited’s Stock Screener and sorted the information with the ‘Dividend Yield’ filter. Have some tips on tricks to building your own dividend income portfolio? Head over to the to discuss!