How am I certain that a company will keep on paying dividends?
How do I know if a company will keep on paying out its dividends?
How do I know if a company will keep on paying out its dividends?
Citi Personal Loans / Citibank Singapore
The OCBC ExtraCash Loan is a true personal loan as it allows you to borrow up to 6X your monthly salary. However, I must warn that the interest rate is kinda high. If you don’t require that much money, I recommend that you consider the OCBC Cash-on-Instalments loan which is slightly cheaper. However currently with OCBC personal loan, you can get a MoneySmart exclusive rate of 3.5% (7.27% p.a.) for new loan customers with only 1% processing fee. For existing loan customers, you pay an interest of 4.7% p.a. (EIR 9.46% p.a.).
OCBC ExtraCash Loan / Oversea-Chinese Banking Corporation
If you need to borrow a large amount but cannot afford a big monthly repayment, then you should give consideration to the HSBC Personal Loan. This HSBC personal loan offers the longest loan tenure of 7 years in Singapore which means you’ll be paying 7 years’ worth of interest. HSBC is also great for those who need cash urgently as you can get approval-in-principle within one minute and receive the money the next working day. Isn’t that just wonderful?
HSBC Personal Loan / HSBC Bank Singapore
Maybank does not exactly offer a proper personal loan in itself but its term loan is linked to its personal credit line product. You just need to sign up for CreditAble in order to cash your credit line using the Maybank CreditAble Term Loan but note the terms & conditions and annual fee however. In my personal opinion, the loan amount is small while the interest is high, so it may be best to avoid this one.
Maybank Personal Loan / Maybank Singapore
DBS personal loans are based on either your credit card or personal line of credit. Thus if you have DBS credit card or DBS Cashline and a DBS deposit account, you can apply through internet banking and get your loan processed immediately and credited instantly into your account. However if you don’t have a DBS credit card you can still get this loan, but you will have to furnish your income documents and obviously you won’t get the funds right away
DBS Personal Loan / DBS Bank
Although standard Chartered personal loan’s published rates aren’t that awesome, you still get a much lower interest rate as well as $199 cashback for loans of $1,000 and above if you apply through MoneySmart for your loan amounts of $1,000 to $250,000. Like most of its competitors, Standard Chartered Bank promises next-day cash. You can apply via MyInfo via MoneySmart to get instant approval and loan disbursement
Standard Chartered CashOne Personal Loan / Standard Chartered Bank Singapore
No Name
The truth is you don’t. If companies cannot give dividends anymore, it may seem bad, but in bad times, this may also mean prudence in managing available funds. Also dividend is another portion of cash flow management. How companies manage dividends at various financial health is really up to the management decision as to whether to continue to give out dividends. What you can do as an investor is to check if the dividend is sustainable based on the following factors: Dividend Pay-out Ratio (Better to be less than 100%), FCF (Dividend pay-out must be less than FCF to be sustainable), Look at operating cash flow and amount paid to shareholders. If amount paid is more than operating cash flow, the dividend pay-out is unsustainable and unlikely to continue long. Past 5 year profits. Ideally, profits should be increasing year on year. This means that company is earning more and they are able to reward shareholders more. Lastly, past 5 year dividend yield/policy. Some companies have policies on the percentage of dividend yield. If dividend yield is very low/policy not present, it is possible for the company to pay low/no dividend.