$OCBC Bank(O39.SG)My Take on a S$10,000 Dividend PortfolioI came across The Smart Investor’s article on investing S$10,0…

$OCBC Bank(O39.SG)

My Take on a S$10,000 Dividend Portfolio

I came across The Smart Investor’s article on investing S$10,000 into three dividend stocks. The idea is straightforward: combine OCBC for income, Sheng Siong for defensiveness and CapitaLand Investment (CLI) for growth. I like the framework, but I would not copy the allocation wholesale.

My customised S$10,000 allocation would be OCBC S$4,000, CLI S$2,500, Sheng Siong S$1,500 and S$2,000 into a higher-yielding, financially sound REIT or blue chip.

OCBC would remain the core. Its 1H2026 net profit rose 13% to S$4.19 billion, ROE reached 13.7% and the interim dividend increased 15% to 47 cents. The fundamentals are strong, although at around S$32, roughly 14x earnings, much of the good news is already reflected in the price.

CLI deserves 25% because its earnings profile is improving. 1H2026 operating PATMI rose 13% to S$293 million, while fee revenue increased 20%. Its shift towards recurring fee income provides a different growth engine from OCBC.

I would trim Sheng Siong to 15%. Its 1H2026 revenue and profit both grew 11.9%, and the interim dividend rose to 3.75 cents. However, its defensive qualities appear well recognised by the market, making valuation more important at this stage.

The remaining 20% is deliberate. For an income investor, I would rather use it to lift portfolio yield than allocate everything to lower-yielding growth names.

My takeaway: follow the article’s philosophy, not its exact allocation. Prioritise sustainable dividends, valuation and diversification—not simply owning three popular dividend stocks.

Not financial advice.