In an increasingly uncertain world, dividend-paying stocks are gaining traction as a way for investors to keep their portfolios steady while still earning reliable income. Reflecting this demand, global ETF assets tracking dividend strategies reached an all‑time high in 2025.
Why dividend stocks?
Companies that pay consistent dividends tend to have durable business models, stable cash-flow generation, and strong balance sheets. These qualities typically help companies stay resilient during periods of market stress. At the same time, such companies are often able to grow their earnings over the long run, offering the potential for stock price appreciation alongside regular income for investors.
Why ASEAN?
ASEAN is a land of abundant dividend opportunities. The region is home to over 1,500 dividend‑paying companies1, and the 12-month dividend yield of the FTSE ASEAN Index is at 4.23 percent2, well above many developed market benchmarks, including those in the US and Europe.
This dividend strength stems from the prevalence of dividend-paying companies across the region. For example, the FTSE ASEAN Index is dominated by banks, telcos, and consumer-related companies. These businesses operate in mature industries and generate steady earnings, allowing them to pay dividends year after year. ASEAN also has a strong dividend-paying culture, with many companies prioritising returning profits to shareholders.
For investors seeking a simple and efficient way to access ASEAN’s dividend opportunities, the UOBAM Ping An FTSE ASEAN Dividend Index ETF (the “ETF”) provides diversified exposure to the region’s leading dividend‑paying companies.
It tracks the FTSE ASEAN ex REITs Target Dividend Index (the “Index”), which seeks to deliver a 100 percent increase in dividend yield compared to the broader FTSE ASEAN Index by allocating more weight to companies with stronger and more consistent dividend payouts.
5 benefits of the UOBAM Ping An FTSE ASEAN Dividend Index ETF (SGX: UPD, UPU)
1. Attractive income potential
The ETF aims to pay dividends of at least 6.0 percent per annum in 2026 and 20273, placing it among the highest‑yielding ETFs listed in Singapore4.
2. Gateway to ASEAN’s dividend leaders
The ETF invests in some of the most established companies across Singapore, Indonesia, Malaysia, Thailand and the Philippines. Top holdings include Singapore’s local banks, as well as regional champions such as Malaysia’s Maybank, Indonesia’s Astra International, and Thailand’s PTT.
With portfolio companies spanning both developed markets like Singapore and faster-growing emerging markets such as Indonesia and Malaysia, the ETF provides a blend of stability and growth, which can be helpful during periods of uncertainty.
Fig 1: FTSE ASEAN ex REITs Target Dividend Index top 10 constituents
|
Company |
Weight |
Description |
|
DBS Group Holdings |
9.87% |
Singapore’s largest bank and financial group |
|
Bank Mandiri |
7.80% |
Indonesia’s largest state‑owned commercial bank |
|
Bank Rakyat Indonesia |
7.65% |
Indonesia’s leading microfinance and retail bank |
|
OCBC |
6.53% |
Major Singapore bank with strong regional presence |
|
UOB |
4.56% |
Major Singapore bank with strong regional presence |
|
Maybank |
4.15% |
Malaysia’s largest bank and financial services group |
|
Astra International |
3.68% |
Indonesia’s diversified conglomerate spanning autos and industries |
|
PTT |
3.64% |
Thailand’s national energy and petrochemicals company |
|
SCB X |
3.30% |
Thailand’s major financial group |
|
Singtel |
2.82% |
Singapore’s largest telecom provider |
Source: Factset, Bloomberg, FTSE Russell as at 28 November 2025. Information on the FTSE ASEAN ex REIT Target Dividend Index is based on publicly disclosed information on the FTSE website. The FTSE ASEAN ex REIT Target Dividend Index was launched on 3 October 2025.
3. Exposure to stable sectors
For investors seeking stability, the ETF offers focused exposure to resilient, income-generating sectors such as financials, telecommunications, and utilities. Together, these stable sectors make up about 77 percent of the portfolio, helping to anchor returns and reduce overall portfolio risk.
Fig 2: Index sector exposure
Source: FTSE Russell, as at 28 November 2025
Importantly, this tilt towards stable sectors offers not just steadier performance but also a naturally stronger dividend profile. Financial institutions for example, tend to generate steady profits and often hold more capital than they need. Rather than reinvesting all of it, they regularly return excess capital to shareholders through cash dividends or share buybacks, resulting in higher and more reliable payout levels.
Meanwhile, telcos and utility companies operate in mature, cash‑generative industries, enabling them to consistently distribute a portion of earnings back to investors.
4. Quality dividend income
Unexpected dividend cuts or suspensions are common concerns for income investors. To mitigate this risk and strengthen dividend quality, the Index applies a screening process to detect and remove companies with unsustainably high yields, negative price momentum that may indicate emerging financial stress, or yield spikes caused by sharp share‑price declines.
Such filters help ensure that the portfolio remains concentrated in reliable dividend payers with a strong ability to maintain sustainable income over time.
5. Upside potential
Compared with the US, valuations across ASEAN markets like Indonesia, Malaysia and Thailand look undemanding, and are currently sitting below their 10-year average forward P/E ratios5. This is partly due to the region’s perceived lack of AI‑ and tech‑driven growth stories, which has kept valuations relatively subdued.
But as the AI rally matures and investors reassess how much they are willing to pay for expensive tech stocks, attention could start to shift. ASEAN markets may stand out as an undervalued segment with room to catch up, offering exposure to companies with solid fundamentals but without the stretched valuations found in many tech‑driven markets.
How to invest in the UOBAM Ping An FTSE ASEAN Dividend Index ETF
The ETF is listed on the Singapore Exchange (SGX) and can be purchased through your preferred brokerage platform in either SGD (UPD) or USD (UPU). It is available via cash or SRS, and no Customer Account Review (CAR) clearance is required.
With no minimum board lot size, you can start investing from just one unit.
The ETF charges a management fee of 0.45 percent per annum and follows a semi‑annual rebalancing schedule in March and September.
ETF information
|
ETF Name |
UOBAM Ping An FTSE ASEAN Dividend Index ETF |
|
Investment Objective |
The investment objective of the ETF is to replicate as closely as possible, before expenses, the performance of the FTSE ASEAN ex REITs Target Dividend Index |
|
Trustee |
State Street Trust (SG) Limited |
|
Stock Exchange |
Singapore Exchange Securities Trading Limited |
|
Listing Date |
29 January 2026 |
|
Management Fee |
Currently 0.45% p.a. |
|
Number of Index Constituents |
57 (as of September 2025) |
|
Distribution Policy |
The ETF aims to pay dividends of at least 6.0 per cent per annum in 2026 and 2027. |
|
Currency Classes |
Class SGD Units (Primary Currency: SGD | Secondary Currency: USD) |
|
SGX Stock Code |
Units traded in SGD: UPD | Units traded in USD: UPU |
|
Designated Market Maker |
Phillip Securities Pte Ltd |
1Source: Bloomberg, as of Dec 2025
2Source: Factset, Bloomberg, FTSE Russell as of 31 December 2025
3Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.
4Source: List of dividend-paying ETFs on SGX sourced from SGX’s ETF Market Highlights report, Q3 2025
5Source: UOBAM, Factset, as of 30 Sep 2025
| If you are interested in investment opportunities related to the theme covered in this article, here is a UOB Asset Management Fund to consider: You may wish to seek advice from a financial adviser before making a commitment to invest in the above fund, and in the event that you choose not to do so, you should consider carefully whether the fund is suitable for you. |
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The UOBAM Ping An FTSE ASEAN Dividend Index ETF has been developed solely by UOBAM. The UOBAM Ping An FTSE ASEAN Dividend Index ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.
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