How much money do I need to start buying dividend stocks in Singapore?

There is no official minimum, but because brokers charge a commission (often with a minimum fee) and SGX trades in lots of 100 shares, very small trades are inefficient. Many beginners start with a few hundred to a few thousand dollars per stock so fees are a small percentage of the trade.

Should I use a CDP or custodian account?

CDP holds shares in your own name with dividends paid to your bank — favoured for long-term ownership. Custodian accounts, held by the broker, usually have lower fees. Both are legitimate; the choice comes down to whether you prioritise direct ownership or lower costs.

Do I pay tax on dividends from Singapore stocks?

No. Singapore does not tax dividends from SGX-listed companies for individual investors, and there is no capital-gains tax. Foreign stocks can be subject to withholding tax in their home country.

How to Buy Dividend Stocks in Singapore (Beginner's Guide)

Buying dividend stocks on the SGX is straightforward once your account is set up. Here is the whole process, start to finish.

Step 1 — Open a brokerage account

You will need a broker to place trades. There are two account types to understand:

CDP-linked — your shares are held in your own name in a Central Depository (CDP) account. You are the direct legal owner, and dividends are paid straight to your linked bank account.
Custodian — your shares are held by the broker on your behalf. Fees are often lower, but the broker is the nominee.

For long-term dividend investing many Singaporeans prefer CDP for the direct ownership; for lower costs, a custodian works well. Either is fine to start.

Step 2 — Fund your account

Transfer money in via PayNow, FAST or bank transfer. You can also invest with your SRS funds through most brokers, which can bring tax relief on the amount you contribute.

Step 3 — Choose your stocks

This is where StockKaki helps. Compare every SGX payer ranked by yield on the best dividend stocks page, or the property plays on the Singapore REITs page. Do not chase the highest number blindly — a very high yield can be a warning (see how dividend yield works). Look for a sustainable payout and a consistent history, and spread your money across a few names rather than one.

Step 4 — Place the order

In your broker's app, search the stock, choose buy, and pick an order type: a market order fills immediately at the going price, while a limit order only fills at your chosen price or better. SGX trades in board lots of 100 shares.

Step 5 — Collect your dividends

Once you own a stock before its ex-dividend date (see what an ex-date is), you are entitled to its next payout. Dividends are paid automatically — to your bank account (CDP) or into your brokerage (custodian) — on the payment date, usually a few weeks later. There is nothing to claim.

A note on costs and tax

Brokers charge a commission per trade, often with a minimum, so very small trades can be inefficient — factor that in. The good news on tax: Singapore has no tax on dividends and no capital-gains tax, so the income and any gains are yours to keep (more on dividend tax).