To The Moon

Special Promotion: Receive up to S$50* Cash Coupon when you subscribe to the UOBAM Ping An FTSE ASEAN Dividend Index ETF. Find out more HERE.

At the start of 2025, you could still turn to six-month Singapore Treasury bills (T-bills) for relatively high yields of 3 percent with minimal risk. But as interest rates declined over the year, T-bill yields came down too, ending at just 1.6 percent as of 31 December 2025.

This sharp drop has prompted many investors to look beyond cash‑like instruments for better income opportunities. If you’re reluctant to settle for lower yields and are open to take on modest additional risk, dividend-paying stocks offer an attractive middle ground. They provide a meaningful step-up in income compared to T-bills while generally exhibiting lower volatility than pure growth stocks.

What are dividend stocks?

Dividend stocks are shares of companies that distribute part of their earnings to shareholders via cash payments known as dividends. Unlike growth-oriented companies that reinvest most of their profits to grow the business, dividend-paying companies usually pay out their excess cash to provide shareholders with a steady stream of income and to encourage them to continue holding their stocks.

Dividend-paying companies tend to be large, well-established businesses with a track record of consistent earnings. While dividends are usually distributed quarterly, semi-annually, or annually, they are not guaranteed as companies can cut or suspend payouts during periods of severe market stress.

5 reasons to consider dividend investing

1. Attractive income

With yields on cash and traditional safe assets like T‑bills continuing to fall in today’s lower interest rate environment, dividend stocks have emerged as a valuable source of regular income. Most Singapore-listed dividend ETFs offer yields in the 4 to 6 percent range1, significantly higher than the below-2 percent returns that cash instruments provide today2.

2. Potential capital appreciation

Unlike T-bills, dividend stocks offer not only income but also the potential for capital gains. As companies grow their earnings and steadily increase their dividends, their share prices often rise as well, even if at a more measured pace than high‑growth companies. This allows investors to benefit from both income and growth.

3. Dividends help power long-term returns

When people think about building wealth, they often focus on growth stocks. But dividends play a much bigger role than many realise, especially in Asia. Data shows that dividends made up roughly half (51 percent) of the MSCI AC Asia ex Japan Index’s total return over the past 20 years, underscoring how much wealth creation can come from steady payouts, not just rising share prices.

When companies consistently share profits through dividends, those payouts can accumulate and compound over time, becoming a powerful driver of long‑term returns.

Source: Bloomberg, based on the MSCI AC Asia ex Japan Index from Jan 2005 to Dec 2025. Past performance is not indicative of future performance.

4. Portfolio stability

Companies that consistently pay and grow dividends are often seen as financially stable since they need to generate steady cash flow to support regular payouts. These firms often have strong balance sheets and durable business models, which helps them remain resilient during periods of market stress. As a result, their share prices usually experience less volatility than those of growth‑focused companies, offering investors a smoother ride through market ups and downs.

Additionally, dividends also act as a cushion during market declines. For example, a 10 percent drop in share price during market volatility may feel more manageable if an investor knows he is earning 5 percent in dividends. In this scenario, the dividend income received helps offset part of the loss, providing reassurance and helping investors stay invested through market downturns.

5. Built‑in inflation protection

Many established dividend‑paying companies have a track record of increasing their dividends over time. Such consistency signals healthy fundamentals and reflects management’s confidence in the company’s future earnings growth.

Growing dividend payouts allow investors to benefit from a gradually rising income stream, which can help keep pace with rising living costs and serve as a natural hedge against inflation.

How to invest in dividend stocks

Investing in dividend stocks doesn’t have to be complicated. Start by focusing on companies with a track record of paying dividends regularly. These are typically well-established, stable businesses in sectors such as financial services, utilities and telecommunications.

Rather than relying on one or two companies, it’s good practice to diversify your portfolio with dividend stocks from different sectors and geographies. This can help lower portfolio risk and provide a more stable income stream.

While investing in individual dividend stocks gives you more control, it also requires more time and effort to research companies and monitor their performance.

If you prefer a simpler, hands‑off approach, dividend‑focused ETFs offer an easy way to gain diversified exposure without having to pick stocks. These ETFs bundle multiple dividend stocks into a single fund, providing convenience, income potential, and professional management - all in one investment.

Introducing the UOBAM Ping An FTSE ASEAN Dividend Index ETF (SGX: UPD, UPU)

For investors who want a straightforward way to tap dividend opportunities across the region, the UOBAM Ping An FTSE ASEAN Dividend Index ETF (the “ETF”) gives investors access to leading dividend‑paying companies across Singapore, Indonesia, Thailand, Malaysia, and the Philippines.

The ETF aims to pay dividends of at least 6 percent per annum in 2026 and 20273, making it one of the highest among Singapore-listed ETFs. It includes well‑established regional names such as DBS, OCBC, UOB, Malayan Banking, Astra International, and PTT, giving you diversified exposure to ASEAN’s long‑term growth potential and stable cash‑generating businesses.

The Initial Offering Period (IOP) for the ETF is now open, with units priced at S$1.00. You can subscribe in SGD through Participating Dealers — Phillip Securities, UOB Kay Hian, Tiger Brokers Singapore, Moo Moo Singapore, iFAST Financial, and Maybank Securities — or via UOB and OCBC ATMs and internet banking.

The IOP closes on 26 January 2026. Once the ETF lists on SGX on 29 January 2026, you can trade it in SGD (UPD) or USD (UPU) through your usual brokerage platform.

Special Promotion: Receive up to S$50* Cash Coupon when you subscribe to the UOBAM Ping An FTSE ASEAN Dividend Index ETF. Find out more HERE.

You may wish to seek advice from a financial adviser before making a commitment to invest in the above fund, and in the event that you choose not to do so, you should consider carefully whether the fund is suitable for you.

1 Source: SGX ETF Market Highlights report, Q3 2025

2 Source: MAS, as of January 2026

3 Distributions (in SGD) are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.

Please refer to uobam.com.sg/awards for the latest list of UOBAM awards.

**********

Important Notice & Disclaimers

Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the NAV per unit of the relevant Distribution Class as at the last business day of the calendar month or quarter. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.

MSCI Data are exclusive property of MSCI. MSCI Data are provided "as is", MSCI bears no liability for or in connection with MSCI Data. MSCI full disclaimer here.

This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund ("Units") or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.

The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd's ("UOBAM") views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited ("UOB"), UOBAM, or any of their subsidiary, associate or affiliate ("UOB Group") or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.

Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited ("SGX"). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.

An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of all or part of the principal amount invested. Investors should read the Fund's prospectus and product highlights sheet, which are available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You are responsible for your own investment decisions. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.

The UOBAM Ping An FTSE ASEAN Dividend Index ETF has been developed solely by UOBAM. The UOBAM Ping An FTSE ASEAN Dividend Index ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.

All rights in the FTSE ASEAN ex REITs Target Dividend Index vest in the relevant LSE Group company which owns the FTSE ASEAN ex REITs Target Dividend Index. "FTSE®" is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license.

The FTSE ASEAN ex REITs Target Dividend Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE ASEAN ex REITs Target Dividend Index or (b) investment in or operation of the UOBAM Ping An FTSE ASEAN Dividend Index ETF. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the UOBAM Ping An FTSE ASEAN Dividend Index ETF or the suitability of the FTSE ASEAN ex REITs Target Dividend Index for the purpose to which it is being put by UOBAM.

The inclusion of "Ping An" in the name of the UOBAM Ping An FTSE ASEAN Dividend Index ETF reflects the collaboration between us and Ping An Fund Management Company Limited in relation to the Sub-Fund (which a Ping An feeder ETF in China is expected to feed into in the future). For clarity, Ping An is not a sub-manager or advisor in relation to the Sub-Fund, and the Sub-Fund is solely managed by us.This advertisement has not been reviewed by the Monetary Authority of Singapore.

UOB Asset Management Ltd Co. Reg. No. 198600120Z