In the realm of investment, dividend-paying stocks continue to be a favourite for those seeking steady, passive income. In Singapore, while quarterly and bi-annual dividend payouts are the norm, monthly dividend stocks are beginning to pique investor interest. These investments provide consistent cash flow, making them ideal for retirees, income-focused investors, or anyone keen on compounding gains more regularly.

But what exactly are monthly dividend stocks, and which are the highest-yielding ones available on the Singapore Exchange (SGX)? This article dives deep into the landscape of monthly dividend investing in Singapore — offering insights, strategies, and a curated list of top-performing stocks.

Understanding Monthly Dividend Stocks

Monthly dividend stocks are shares in publicly listed companies or trusts that pay out a portion of their earnings to shareholders every month. This frequency is particularly attractive in contrast to the traditional quarterly or annual payout schedules.

The benefits of monthly dividend stocks include:

• Regular Cash Flow: They can supplement monthly expenses or be reinvested for faster compounding.
• Smoother Income Stream: For retirees or income-dependent investors, monthly payments provide stability.
• Higher Yield Opportunities: Some monthly dividend payers offer competitive yields, albeit sometimes at higher risk.

In Singapore, the prevalence of monthly dividend stocks is limited compared to markets like the United States. However, a few Real Estate Investment Trusts (REITs), Business Trusts, and select counters offer consistent monthly or near-monthly distributions.

How to Evaluate Dividend Stocks in Singapore

Before investing in any dividend-paying stock, consider the following factors:

1. Dividend Yield

This is the annual dividend expressed as a percentage of the share price. For instance, a stock priced at S$1.00 paying S$0.08 annually has a yield of 8%.

High yield isn’t always better — extremely high yields can indicate underlying business risks or unsustainable payouts.

2. Dividend Payout Ratio

This metric indicates how much of the company’s earnings are distributed as dividends. A sustainable payout ratio is usually below 80% for most companies, though REITs often pay out more (typically above 90%) due to regulatory requirements.

3. Dividend History

Consistent, uninterrupted dividend payments signal a stable business model and sound management.

4. Business Fundamentals

Cash flow, debt levels, and market position must be strong. A company cannot continue paying dividends if its core operations are weakening.

5. Growth Prospects

While dividend income is essential, long-term capital growth ensures your portfolio continues to appreciate over time.

Challenges in Finding Monthly Dividend Stocks in Singapore

Unlike the U.S. market with well-known monthly dividend players like Realty Income Corp (O), Singapore has a limited number of true monthly dividend payers. This is primarily due to:

• Listing requirements and norms in Singapore favouring quarterly distributions.
• Investor expectations for lump-sum dividends at intervals.
• Operational efficiency challenges for firms to manage monthly disbursements.

However, some counters offer either true monthly dividends or 12-monthly rolling distributions through instruments like business trusts or bond-like equities.

Highest-Yielding Monthly or High-Frequency Dividend Stocks in Singapore

While “true” monthly dividend stocks are rare, here are several SGX-listed stocks and trusts known for frequent or consistent monthly/near-monthly distributions — accompanied by relatively high yields.

1. Phillip SGX APAC Dividend Leaders REIT ETF (SGX: BYI)

• Dividend Frequency: Monthly
• Dividend Yield: ~5.0% to 6.5% (variable)
• Type: Exchange-Traded Fund (ETF)
• Focus: REITs in Asia-Pacific

This ETF tracks high-dividend REITs across the Asia-Pacific, offering a diversified monthly income stream. Holdings include top REITs from Singapore, Hong Kong, and Australia. As it’s passively managed, fees are low, and it’s highly liquid for retail investors.

Pros: Diversification, passive income, low maintenance
Cons: Subject to market volatility, yield may vary with REIT market cycles

2. Manulife US REIT (SGX: BTOU)

• Dividend Frequency: Quarterly (but has historically provided rolling monthly distributions in USD)
• Dividend Yield: ~15%+ (as of 2025; caution advised due to price volatility)
• Type: REIT
• Focus: Grade A commercial properties in the U.S.

Despite the attractive yield, investors must be cautious. The trust has suffered from valuation pressures in U.S. commercial property and foreign exchange risks, but the regular payouts have attracted high-yield seekers.

Pros: High yield, exposure to U.S. economy
Cons: FX risk, property devaluation, possible restructuring

3. Keppel Infrastructure Trust (SGX: A7RU)

• Dividend Frequency: Quarterly (effectively consistent across 12 months)
• Dividend Yield: ~7.0%–8.0%
• Type: Business Trust
• Focus: Essential services (waste management, gas, energy infrastructure)

While not strictly monthly, the trust pays stable dividends derived from long-term, cash-generating assets. Revenue is often underpinned by government-linked contracts and regulated businesses.

Pros: Stability, defensive sector, reliable yield
Cons: Not a true monthly dividend stock, exposure to interest rate hikes

4. NetLink NBN Trust (SGX: CJLU)

• Dividend Frequency: Semi-annual but with strong consistency and forecastable returns
• Dividend Yield: ~5.5%–6.0%
• Type: Business Trust
• Focus: Fibre network infrastructure in Singapore

Backed by regulatory protection, NetLink owns the fibre backbone for Singapore’s broadband network. While not monthly, its income stability and low capital risk attract income-seeking investors.

Pros: Monopoly-like business, predictable returns
Cons: Limited capital growth, regulatory constraints

5. Frasers Logistics & Commercial Trust (SGX: BUOU)

• Dividend Frequency: Quarterly
• Dividend Yield: ~6.0%
• Type: REIT
• Focus: Logistics and commercial real estate across Australia, Europe, Singapore

With assets in prime locations and stable tenants, this REIT consistently delivers attractive yields. Although not monthly, distributions can be averaged across months for stable cash flow.

Pros: Diversified geography, stable tenant base
Cons: FX risk, economic sensitivity in Europe and Australia

Can You Build a “Monthly Dividend Portfolio” in Singapore?

Though there are no many pure monthly dividend stocks in Singapore, you can build a monthly income portfolio by diversifying across counters that pay on staggered schedules.

Here’s how:

By mixing ETFs, REITs, and Trusts with staggered distributions, an investor can achieve a more frequent income stream that mimics monthly payouts.

Risks of Chasing High Yields

While high dividend yields are attractive, investors must stay wary of dividend traps — where a high yield results from a falling share price due to poor fundamentals.

Key risks include:

• Interest Rate Sensitivity: REITs and Trusts are vulnerable to rate hikes.
• Property Market Volatility: Especially true for overseas REITs.
• Currency Risks: For trusts earning in USD or AUD.
• Regulatory and Tax Risks: Changes in tax treaties can affect dividend withholding.

Final Thoughts: Income, With Eyes Open

Monthly dividend investing in Singapore is possible, though not straightforward. Given the relative scarcity of such counters on the SGX, a savvy investor must construct a portfolio across different dividend schedules to ensure consistent cash flow.

The most promising approach is to blend reliable dividend stocks and trusts with ETFs that pay monthly, such as the Phillip SGX APAC Dividend Leaders REIT ETF.While chasing yield is tempting, prudent investors balance yield with business quality, sustainability, and long-term capital preservation. After all, consistent income is only as good as the foundation it rests on.