How to Get $1,000 per Month in Dividends in Singapore

Step 1: Define the Target

• You want $1,000 per month = $12,000 per year in dividends.

So your dividend income goal is $12,000 annually.

---

Step 2: Estimate the Required Portfolio Size

Now, how much you need depends heavily on your average dividend yield.

In Singapore, many reliable dividend stocks (like REITs, banks, telcos) offer dividend yields between 4%–6%.

Let’s use two examples:

Average Yield	Portfolio Needed
4%	$300,000
5%	$240,000
6%	$200,000

Example:

• If your average portfolio yield is 5%, you need $240,000 invested to generate $12,000/year.

---

Step 3: How Long Will It Take If You Invest $1,000/Month?

Let’s assume:

• $1,000 invested every month

• Reinvest all dividends

• 5% average dividend yield

• Minimal capital growth (very conservative — not assuming stock price growth)

Now, you are essentially compounding over time.
The formula is similar to a future value of an annuity:

$$FV = P \times \frac{(1 + r)^n - 1}{r}$$

Where:

• $P = 1,000$ (monthly investment)

• $r = 0.004167$ (monthly dividend reinvestment yield, assuming 5% annually ÷ 12)

• $n = \text{number of months}$

Using a simple compound interest calculator:

Years	Approximate Portfolio Size
5 years	~$68,000
10 years	~$155,000
15 years	~$265,000

🔵 Roughly:

• After 5 years: You may get $3,400/year in dividends ($280/month)

• After 10 years: You may get $7,750/year ($645/month)

• After 13–14 years: You can reach $12,000/year ($1,000/month).

👉 Conclusion:
It will take about 13–14 years investing $1,000/month to achieve $1,000/month dividends at a 5% yield, assuming reinvestment and no major setbacks.

---

Step 4: Shortcut Options (Optional)

If you want to speed it up:

• Increase your monthly investment:
  ($1,500/month would cut the time to ~9–10 years).

• Target higher yields carefully:
  Some REITs or trusts offer 6–7% yields — but higher yield = potentially higher risk.

• Use bonuses, CPF-OA investing (for T-bills or dividend-paying funds) if allowed.

---

Step 5: What Stocks or ETFs in Singapore to Consider?

Popular dividend choices include:

• Singapore REITs (S-REITs)
  (e.g., Mapletree Industrial Trust, Ascendas REIT, Frasers Centrepoint Trust)

• Banks
  (e.g., DBS, OCBC, UOB — currently 4%–5% dividend yields)

• Telecoms
  (e.g., Singtel)

• Dividend ETFs
  (e.g., Nikko AM STI ETF, Lion-Phillip S-REIT ETF)

Diversification across different sectors is key so you don’t rely too heavily on just REITs or banks.

---

Quick Summary Table

Question	Answer
How much portfolio needed?	~$240,000 (at 5% yield)
Monthly investment	$1,000
Time needed	~13–14 years
Faster option	Invest more monthly or find slightly higher yields carefully
Investment type	REITs, banks, dividend ETFs in SGX