With the end of 2025Q1, we are now moving to the second quarter for 2025. This will be an interesting quarter, with sweeping tariffs imposed by the United States across other countries. This has led the stock market in the United States to see major losses last week, unseen since covid days.
Website: Major US stocks see biggest losses since 2020 after Trump’s tariffs announcement
As of now, the Federal Reserve funds rate remain at 4.25% to 4.50%, unchanged since 19 December 2024. The market narrative as of March 2025 was that there was no hurry. Investors will need to monitor if there are any changes over the next few months as the uncertainty around the world continues.
Website: Fed leaves rates unchanged, sees no hurry to cut again
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
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Singapore Savings Bond
The Singapore Savings Bond (“SSB”) for May 2025 issuance has a 10-year average return of 2.69%. As the SSB is backed by the Singapore Government and has a credit rating of AAA, for now this is one of the safest investments out there. Long-term holders should use the 2.75% as a risk-free rate when making your purchase considerations.
Website: SBMAY25 GX25050T Bond Details
I have extracted the daily March 2025 rates from MAS e-service website and noted that the 10-year average yield is as below for confirmation.
| March 2025 Date | 10-Year Yield |
|---|---|
| 3 | 2.74% |
| 4 | 2.69% |
| 5 | 2.72% |
| 6 | 2.75% |
| 7 | 2.69% |
| 10 | 2.68% |
| 11 | 2.63% |
| 12 | 2.64% |
| 13 | 2.63% |
| 14 | 2.66% |
| 17 | 2.69% |
| 18 | 2.68% |
| 19 | 2.68% |
| 20 | 2.66% |
| 21 | 2.67% |
| 24 | 2.72% |
| 25 | 2.78% |
| 26 | 2.75% |
| 27 | 2.72% |
| 28 | 2.69% |
| Average | 2.69% |
Summary
With my market risk premium of 2.50% and the risk-free rate of approximately 2.75%, this would translate to my expected dividend yield for new purchases to remain unchanged in 2025Q2 at 5.25%.
Take note that if there are assets with yields that may be significantly above 5.25%, it may also be accompanied with higher underlying risks. Investors should also not just look at dividend yield but also at the strength of the company, such as their management team, when making the investment decision.
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