Tax-Free Dividend Portfolio – Customized Investment Allocation
Since you’re focused on financial freedom with dividends, here are three portfolio options based on different risk levels.
1️⃣ Conservative (Low Risk, Stable Income – 4.8% Yield)
🔹 Best for: Stability, capital preservation, & passive income
🔹 Strategy: Focus on large-cap dividend stocks & blue-chip REITs
| Asset Class | Allocation | Expected Yield (%) | Annual Income ($) |
|---|---|---|---|
| Blue-Chip Dividend Stocks (DBS, OCBC, UOB, SGX, ST Eng) | 50% ($1M) | 4.5% | $45,000 |
| Blue-Chip REITs (Mapletree Ind, CapitaLand, Frasers L&C) | 30% ($600K) | 5.5% | $33,000 |
| Bonds & SSBs (Govt Bonds, Temasek Bonds) | 20% ($400K) | 3.5% | $14,000 |
| Total | $2M | 4.8% avg. | $92,000/year |
💡 Pros: Lower volatility, stable dividends
💡 Cons: Slower growth, lower long-term upside
2️⃣ Balanced (Medium Risk, Higher Growth – 5.35% Yield)
🔹 Best for: Growth + passive income mix
🔹 Strategy: Mix of growth REITs, banks, & defensive stocks
| Asset Class | Allocation | Expected Yield (%) | Annual Income ($) |
|---|---|---|---|
| Dividend Growth Stocks (DBS, OCBC, SGX, ST Eng) | 40% ($800K) | 5.0% | $40,000 |
| High-Yield REITs (Keppel DC, Digital Core, Mapletree Ind) | 50% ($1M) | 6.0% | $60,000 |
| Bonds & Cash (SSBs, T-Bills, CPF) | 10% ($200K) | 3.5% | $7,000 |
| Total | $2M | 5.35% avg. | $107,000/year |
💡 Pros: Balanced mix of stable & high-yielding assets
💡 Cons: REITs can be volatile during downturns
3️⃣ Aggressive (Higher Risk, Max Yield – 6.1% Yield)
🔹 Best for: Maximizing passive income & total return
🔹 Strategy: Focus on higher-yield REITs & international dividend stocks
| Asset Class | Allocation | Expected Yield (%) | Annual Income ($) |
|---|---|---|---|
| High-Yield REITs (Keppel DC, Digital Core, Frasers L&C, CapitaLand) | 60% ($1.2M) | 6.5% | $78,000 |
| Dividend Growth Stocks (DBS, OCBC, ST Eng) | 30% ($600K) | 5.0% | $30,000 |
| Crypto/Bonds/SRS (SRS Stocks, Govt Bonds) | 10% ($200K) | 4.0% | $8,000 |
| Total | $2M | 6.1% avg. | $116,000/year |
💡 Pros: Highest income potential, faster wealth accumulation
💡 Cons: More volatility, potential dividend cuts in downturns
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