Iggy's Journal: When Beating The Index Isn't The Same As Winning On Income

11 September 2026, PM

Podcast Release

New video's up on OCBC and SGX, and honestly, this is the kind of split that catches people off guard. Both names have doubled the STI's return this year. Genuinely strong price performance, no argument there. And both now yield below the floor I track, the level below which the income case stops working for me. OCBC's 47 cent interim dividend works out to 2.79% at today's price. SGX's 57 cent full year payout is running into the same problem as its share price pushes into record territory.

This is a capital strength call, not a yield call, when it comes to OCBC specifically. At current prices the trailing yield does not clear the minimum threshold I track for income names. The income case strengthens if price corrects or the next ordinary dividend increases. Same logic applies to SGX in principle, a rising price doing exactly what a rising price does, quietly eroding the yield underneath it.

My Personal Take

This is the trap I want people to actually see clearly, not just nod along to. A stock going up is good news for your capital, and can be bad news for your income plan, at the exact same time, and most people only notice one half of that. I don't think this is a reason to sell either name, that's not what I'm saying. But if you bought OCBC or SGX years ago for the yield and you're still mentally pricing it at your original entry, the math today is different. A 41 basis point gap doesn't sound like much until you realise dividend growth now has to outrun the share price just to keep your yield from sliding further. Worth the watch if you hold either one and haven't checked what you're actually earning on today's price rather than yesterday's.

📺 YouTube: https://youtu.be/Li6KPgZ6Ogk

📩 Substack: https://investingiguana.com/p/ocbc-and-sgx-beat-the-sti-by-double

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖