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QuestionsCategory: Investor PsychologyHow are dividends paid?
Chris Chan asked 2 years ago

Hi, sorry im very new to this. But i’ve bought some REITs some time ago. I’ve seen on yahoo finance that they’ve paid dividends but im not sure where the money has gone? Is it to the cdp account or my bank account? Im using dbs vickers, which uses my multi currency account. 

3 Answers
Jieren Zheng answered 2 years ago

The CDP account doesn’t hold cash, if you have not elected your bank account, it will send you cheques.

Usually, it should pay out to your bank account, perhaps you could check on CDP website about your direct crediting service bank account.

Do note that Yahoo Finance is not very accurate on payouts, and you must purchase the shares 1 day before XD to qualify for dividends (which is still CD). If you purchased your shares during XD, you won’t get it.

Victor Chng replied 2 years ago

Thanks JR

Chris Chan replied 2 years ago

Thanks JR.

Jieren Zheng replied 2 years ago

Welcome

Chris Chan answered 2 years ago

Hi guys, sorry i have another question. 
I understand REITS are cyclical and more for dividend payouts. But if a particular REIT has growth as well, would the dividend payout increase as the share price increase?
Sorry I’m actually talking about Keppel DC Reit, I invested some time ago and definitely it has grown.  

Victor Chng answered 2 years ago

Hi Chris,
 
Not all REITs are cyclical in nature it depend on the sector that they are in. In most cases, when dividend increase so do the share price. 
 
Do note that the investment quadrant method is not suitable to analyse the REITs as it required different type of analysis and ratio.