NTUC Income Gro Capital Ease Guaranteed 1.96% p.a.

NTUC Income Gro Capital Ease

NTUC Income Gro Capital Ease is a single premium savings plan that gives you a lump sum payout with guaranteed return of 1.96% per annum over 3 years. You will receive the lump sum payout at the end of the policy term.

The previous tranche was offered on a limited and first-come-first-serve basis in June 2020 with a guaranteed return of 1.85% per annum over 2 years.

What Are Endowment Plans?

NTUC Income Gro Capital Ease is an Endowment plan. Endowment plans are life insurance saving plans that are offered by insurance companies. The aim is to help policyholders save towards specific financial goals. Policy holders can contribute a regular amount for a designated period of time or pay a lump sum upfront at the start of the policy.

Upon maturity of the policy, you will be give a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.

NTUC Income Gro Capital Ease guarantees a maturity benefit of 106% of the single premium after 3 years. No gimmicks here!

What I Loved About NTUC Income Gro Capital Ease?

  1. You are guaranteed acceptance regardless of your health condition. You are protected against death and total and permanent disability (TPD before age 70).
  2. The minimum single premium for online purchase starts at $5,000 which is affordable. The premium is payable via eNets, PayNow QR or Supplementary Retirement Scheme (SRS) funds, or at $20,000 if made through a financial advisor representative, payable using cash or SRS.
  3. This is the only Endowment plan that I know of that has the option to pay premiums using Supplementary Retirement Scheme (SRS) funds.

NTUC Income Gro Capital Ease Versus Singapore Savings Bonds?

Below is the interest rate for October 2020 issue of Singapore Savings Bonds. The interest rate is 0.26% for year 1 and 2 and 0.42% for the third year.

This averages to 0.31% p.a. if you held the October 2020 issue of Singapore Savings Bonds for 3 years. Needless to say, NTUC Income Gro Capital Ease is the clear winner against the Singapore Savings Bonds.

SBOCT20 GX20100N Bond Details

How Does The Endowment Plan Fare Against Fixed Deposits?

In my opinion, DBS Bank offers the best fixed deposit rates in September 2020. For a 36 months placement on amounts from S$1,000 to S$19,999 with DBS Bank, you get an interest rate of 0.85% per annum.

DBS Fixed Deposit Interest Rates 3 September 2020

NTUC Income Gro Capita Ease is still the clear winner here if we compare the interest rate with the interest rates offered by current fixed deposits promotions.

My Opinion

This is the only endowment plan that allow you to pay for the premium using your Supplementary Retirement Scheme funds. With falling interest rates by Singapore Savings Bonds and fixed deposits, this is the current most attractive plan around to grow your money with low risks involved.

This short term endowment plan is available for purchase from 28 September 2020 onwards.

What US Stocks To Buy In September 2020

New York Stock Exchange (NYSE) and Nasdaq

Looking for dividend stocks to buy in the US stock market in September 2020 but not sure where to start? I have been screening for dividend stocks listed on the Singapore Stock Exchange but have not looked at overseas stock exchanges. One of my readers suggested that I should look outside of the local stock market such as New York Stock Exchange (NYSE) and Nasdaq.

Does the same criteria that I use to screen for Singapore dividend stocks apply to overseas stock market as well? I decided to run my dividend stock screener on the US stock exchange to see what results I get. Below are the conditions I set in the stock screener to identify dividend stocks.

  • Current Yield (%) >= 5 and <= 10
  • Price / Earnings <=20
  • Price / Book <= 3
  • Market Capitalization >= 1B

Below are the top dividend yielding stocks listed on NYSE or Nasdaq as of 10th September 2020 for your reference.

Name Current Yield % P/E P/B Market Cap
Cedar Fair, L.P 9.89 -10.13 -5.2 1.6B
Office Properties Income Trust 9.57 15.02 0.67 1.1B
CenturyLink, Inc 9.48 7.38 0.86 11.6B
Janus Henderson Group plc 9.36 7.52 0.8 3.5B
PacWest Bancorp 9.33 7.32 0.62 2.1B
Spire Inc 9.27 7.73 0.56 1.4B
Xenia Hotels & Resorts, Inc 9.26 -9.19 0.64 1B
TC PipeLines, LP 9.25 7.6 2.54 2B
Invesco Ltd 9.06 5.05 0.33 4.7B
Fortress Transportation and In 8.98 12.81 1.22 1.5B
Digital Realty Trust, Inc 8.86 9.63 0.41 7.3B
Compass Diversified 8.71 10.95 0.9 1.1B
Sunstone Hotel Investors, Inc 8.63 -8 0.78 1.7B
Morgan Stanley 8.6 4.75 0.47 41.4B
Six Flags Entertainment Corpor 8.51 -34.89 -4.43 1.9B
Valero Energy Corporation 8.42 16.9 0.9 18.6B
Enbridge Inc 8.39 12.13 0.9 62.9B
Omega Healthcare Investors, In 8.26 18.85 1.77 7.4B
Fortress Transportation and In 8.25 11.51 1.09 1.4B
Cinemark Holdings, Inc 8.16 -8.67 1.36 1.5B
Diversified Healthcare Trust 8.08 -47.29 1.67 4.6B
Kinder Morgan, Inc 7.94 14.51 0.89 29.2B
Banner Corporation 7.86 10.34 0.74 1.2B
The Williams Companies, Inc 7.83 19.98 1.62 24.5B
TOTAL SE 7.83 12.45 0.86 98.8B
New York Community Bancorp, In 7.8 10.9 0.6 4B
CIT Group Inc 7.77 -3.9 0.31 1.8B
Equinor ASA 7.53 14.54 1.42 50.6B
Marathon Petroleum Corporation 7.5 17.81 0.62 19.6B
Columbia Property Trust, Inc 7.49 -41.52 0.49 1.3B
Murphy Oil Corporation 7.49 -20.45 0.32 1.5B
Northwest Bancshares, Inc 7.49 17.58 0.84 1.3B
Umpqua Holdings Corporation 7.45 -1.52 0.98 2.5B
Uniti Group Inc 7.44 -2.48 -1.09 1.7B
National General Holdings Corp 7.37 7.11 0.97 2.9B
Devon Energy Corporation 7.37 14.78 1 3.3B
RLJ Lodging Trust 7.32 -14.75 0.52 1.5B
AT&T Inc 7.16 8.26 1.08 208.6B
AMERISAFE, Inc 7.13 13.7 2.67 1.2B
Universal Corporation 7.11 12.21 0.82 1.1B
Olin Corporation 7.09 -22.14 0.81 1.8B
First Financial Bancorp 7.08 7.26 0.57 1.3B
Schlumberger Limited 7.06 15.81 1.97 24.6B
People’s United Financial, Inc 7.05 7.92 0.56 4.4B
B&G Foods, Inc 7.02 13.6 2.12 1.7B
Brixmor Property Group Inc 6.98 17.14 1.35 3.6B
FBL Financial Group, Inc 6.93 11.76 0.78 1.2B
Comerica Incorporated 6.91 9.45 0.71 5.5B
F.N.B. Corporation 6.87 6.79 0.47 2.3B
Apple Hospitality REIT, Inc 6.87 -254.75 0.73 2.3B
HollyFrontier Corporation 6.81 8.42 0.53 3.3B
National Health Investors, Inc 6.64 15.15 1.93 2.9B
Ternium S.A 6.63 18.1 0.47 3.5B
Weingarten Realty Investors 6.63 9.13 1.2 2.2B
Phillips 66 6.5 11.23 1.05 24.4B
First Horizon National Corpora 6.45 7.96 0.55 2.9B
Tapestry, Inc 6.41 16.12 1.92 4.4B
Prudential Financial, Inc 6.39 6.92 0.4 26.7B
Urban Edge Properties 6.27 9.32 1.2 1.2B
Huntington Bancshares Incorpor 6.26 12.28 0.79 9.7B
VEREIT, Inc 6.22 -11.5 1.14 7.6B
Unum Group 6.22 3.43 0.35 3.7B
Sterling Bancorp 6.14 19.89 1.15 5.1B
LTC Properties, Inc 6.13 13.63 1.86 1.5B
Monmouth Real Estate Investmen 6.13 -113.55 2.39 2.4B
First Interstate BancSystem, I 6.1 12.15 1.02 2B
PPL Corporation 6.08 11.37 0.61 21B
Kennedy-Wilson Holdings, Inc 6.07 16.11 1.31 2.1B
The Goldman Sachs Group, Inc 6.06 1.38 0.1 8.9B
Valley National Bancorp 6.05 7.9 0.66 2.9B
KeyCorp 6.02 10.69 0.68 12B
Webster Financial Corporation 5.97 9.17 0.77 2.4B
LyondellBasell Industries N.V 5.92 10.37 2.74 23.7B
Pebblebrook Hotel Trust 5.91 -23.98 0.49 1.7B
Mack-Cali Realty Corporation 5.91 -6.24 0.58 1.2B
The Interpublic Group of Compa 5.9 9.91 2.51 6.6B
SL Green Realty Corp 5.89 15.92 0.58 3.4B
Fulton Financial Corporation 5.88 8.65 0.67 1.6B
Washington Real Estate Investm 5.84 4.33 1.27 1.7B
Office Properties Income Trust 5.83 16.5 0.73 1.2B
Synovus Financial Corp 5.82 9.22 0.63 3.2B
Philip Morris International In 5.82 15.61 -12.38 125.3B
Triton International Limited 5.74 9.02 1.02 2.6B
Piedmont Office Realty Trust, 5.74 4.96 0.95 1.8B
WesBanco, Inc 5.74 11.41 0.58 1.5B
DTE Energy Company 5.73 4.06 0.42 5B
Citizens Financial Group, Inc 5.73 10.65 0.51 11.4B
Mercury General Corporation 5.71 11.26 1.34 2.4B
Compass Diversified 5.7 15.89 1.3 1.6B
United Bankshares, Inc 5.68 11.67 0.59 2.5B
Assurant, Inc 5.6 12.44 1.15 6.9B
South Jersey Industries, Inc 5.59 16.11 0.5 2.1B
Associated Banc-Corp 5.54 5.99 0.5 2B
Regions Financial Corporation 5.52 16.78 0.61 10.8B
Highwoods Properties, Inc 5.47 11.68 1.49 3.6B
Principal Financial Group, Inc 5.47 7.77 0.72 11.2B
TCF Financial Corporation 5.46 8.19 0.69 3.9B
Kimco Realty Corporation 5.44 5.37 0.93 5.2B
Ryder System, Inc 5.43 -10.78 1.03 2.2B
International Paper Company 5.4 10.79 2.32 17B
Old Republic International Cor 5.39 8.24 0.79 4.6B
Franklin Resources, Inc 5.38 7.6 0.85 9.9B
Xerox Holdings Corporation 5.37 6.73 0.71 4B
Cathay General Bancorp 5.35 7.68 0.79 1.8B
Newell Brands Inc 5.35 11.18 2.08 7.3B
American Financial Group, Inc 5.35 9.07 0.97 6B
The Hanover Insurance Group, I 5.34 11.67 1.18 3.6B
FirstEnergy Corp 5.34 11.44 0.57 15.7B
AXIS Capital Holdings Limited 5.34 -17.88 0.41 2.2B
Domtar Corporation 5.22 19.09 0.63 1.5B
Columbia Banking System, Inc 5.22 12.46 0.81 1.8B
Sandy Spring Bancorp, Inc 5.22 14.45 0.78 1.1B
Hewlett Packard Enterprise Com 5.21 6.27 0.73 11.9B
Safety Insurance Group, Inc 5.18 11.69 1.27 1B
Bank of Hawaii Corporation 5.17 11.29 1.53 2.1B
Duke Energy Corporation 5.15 5.68 0.44 20.5B
Public Storage 5.14 3.61 0.49 4.4B
Apollo Global Management, Inc 5.11 18.22 2.41 10.2B
OGE Energy Corp 5.1 14 1.7 6.1B
CIT Group Inc 5.1 -5.01 0.4 2.3B
The Kraft Heinz Company 5.08 11.29 0.78 38.5B
National Retail Properties, In 5.08 19.98 1.03 4.4B
Newmark Group, Inc 5.06 3.32 1.3 1.1B
Edison International 5.05 12.26 1.12 18.4B
Greif, Inc 5.04 9.5 1.41 1.7B
Omnicom Group Inc 5.02 9.74 2.68 11.3B
Fidelity National Financial, I 5 8.53 1.44 9.6B

Since NYSE and Nasdaq has a lot more companies that are listed, there are 127 companies that were identified by the Stocks Café stock screener.

A quick glance at the results showed me there are companies with a negative P/E and negative P/B. These are indicators that I have never seen when I ran the dividend stocks screener on SGX. What does it mean?

Can stocks have negative P/E ratio?

We all know that the P/E ratio shows the market value of the stock compared to the company’s earnings. A high P/E typically means a stock’s price is high relative to earnings. A low P/E indicates a stock’s price is low compared to earnings. A negative P/E means that the company is losing money. A consistently negative P/E ratio also means the company can run into the risk of bankruptcy.

Thus, you can see companies such as Cedar Fair, L.P and Sunstone Hotel Investors, Inc are paying out dividends even though they are losing money!

I should tweak my condition to include P/E should not be negative!

  • Current Yield (%) >= 5 and <= 10
  • Price / Earnings <=20 and > 0
  • Price / Book <= 3
  • Market Capitalization >= 1B

Can stocks have negative P/B ratio?

P/B ratio is the company’s market capitalisation to its book value. P/B ratios under 1 are typically considered solid investments. However, a low P/B ratio could also mean the company is earning a very poor (even negative) return on its assets.

If the P/B is negative, it would mean that the equity is negative. This is certainly possible if the company has had net losses for several years.

I should tweak my condition to include P/B should not be negative!

  • Current Yield (%) >= 5 and <= 10
  • Price / Earnings <=20 and > 0
  • Price / Book <= 3 and > 0
  • Market Capitalization >= 1B

Final Results

The watch list is now shorter after I put in the additional criteria. These are the 105 top dividend yielding stocks in the US stock market as of 10th September 2020.

Name Current Yield % P/E P/B Market Cap
Office Properties Income Trust 9.57 15.02 0.67 1.1B
CenturyLink, Inc 9.48 7.38 0.86 11.6B
Janus Henderson Group plc 9.36 7.52 0.8 3.5B
PacWest Bancorp 9.33 7.32 0.62 2.1B
Spire Inc 9.27 7.73 0.56 1.4B
TC PipeLines, LP 9.25 7.6 2.54 2B
Invesco Ltd 9.06 5.05 0.33 4.7B
Fortress Transportation and In 8.98 12.81 1.22 1.5B
Digital Realty Trust, Inc 8.86 9.63 0.41 7.3B
Compass Diversified 8.71 10.95 0.9 1.1B
Morgan Stanley 8.6 4.75 0.47 41.4B
Valero Energy Corporation 8.42 16.9 0.9 18.6B
Enbridge Inc 8.39 12.13 0.9 62.9B
Omega Healthcare Investors, In 8.26 18.85 1.77 7.4B
Fortress Transportation and In 8.25 11.51 1.09 1.4B
Kinder Morgan, Inc 7.94 14.51 0.89 29.2B
Banner Corporation 7.86 10.34 0.74 1.2B
The Williams Companies, Inc 7.83 19.98 1.62 24.5B
TOTAL SE 7.83 12.45 0.86 98.8B
New York Community Bancorp, In 7.8 10.9 0.6 4B
Equinor ASA 7.53 14.54 1.42 50.6B
Marathon Petroleum Corporation 7.5 17.81 0.62 19.6B
Northwest Bancshares, Inc 7.49 17.58 0.84 1.3B
National General Holdings Corp 7.37 7.11 0.97 2.9B
Devon Energy Corporation 7.37 14.78 1 3.3B
AT&T Inc 7.16 8.26 1.08 208.6B
AMERISAFE, Inc 7.13 13.7 2.67 1.2B
Universal Corporation 7.11 12.21 0.82 1.1B
First Financial Bancorp 7.08 7.26 0.57 1.3B
Schlumberger Limited 7.06 15.81 1.97 24.6B
People’s United Financial, Inc 7.05 7.92 0.56 4.4B
B&G Foods, Inc 7.02 13.6 2.12 1.7B
Brixmor Property Group Inc 6.98 17.14 1.35 3.6B
FBL Financial Group, Inc 6.93 11.76 0.78 1.2B
Comerica Incorporated 6.91 9.45 0.71 5.5B
F.N.B. Corporation 6.87 6.79 0.47 2.3B
HollyFrontier Corporation 6.81 8.42 0.53 3.3B
National Health Investors, Inc 6.64 15.15 1.93 2.9B
Ternium S.A 6.63 18.1 0.47 3.5B
Weingarten Realty Investors 6.63 9.13 1.2 2.2B
Phillips 66 6.5 11.23 1.05 24.4B
First Horizon National Corpora 6.45 7.96 0.55 2.9B
Tapestry, Inc 6.41 16.12 1.92 4.4B
Prudential Financial, Inc 6.39 6.92 0.4 26.7B
Urban Edge Properties 6.27 9.32 1.2 1.2B
Huntington Bancshares Incorpor 6.26 12.28 0.79 9.7B
Unum Group 6.22 3.43 0.35 3.7B
Sterling Bancorp 6.14 19.89 1.15 5.1B
LTC Properties, Inc 6.13 13.63 1.86 1.5B
First Interstate BancSystem, I 6.1 12.15 1.02 2B
PPL Corporation 6.08 11.37 0.61 21B
Kennedy-Wilson Holdings, Inc 6.07 16.11 1.31 2.1B
The Goldman Sachs Group, Inc 6.06 1.38 0.1 8.9B
Valley National Bancorp 6.05 7.9 0.66 2.9B
KeyCorp 6.02 10.69 0.68 12B
Webster Financial Corporation 5.97 9.17 0.77 2.4B
LyondellBasell Industries N.V 5.92 10.37 2.74 23.7B
The Interpublic Group of Compa 5.9 9.91 2.51 6.6B
SL Green Realty Corp 5.89 15.92 0.58 3.4B
Fulton Financial Corporation 5.88 8.65 0.67 1.6B
Washington Real Estate Investm 5.84 4.33 1.27 1.7B
Office Properties Income Trust 5.83 16.5 0.73 1.2B
Synovus Financial Corp 5.82 9.22 0.63 3.2B
Triton International Limited 5.74 9.02 1.02 2.6B
Piedmont Office Realty Trust, 5.74 4.96 0.95 1.8B
WesBanco, Inc 5.74 11.41 0.58 1.5B
DTE Energy Company 5.73 4.06 0.42 5B
Citizens Financial Group, Inc 5.73 10.65 0.51 11.4B
Mercury General Corporation 5.71 11.26 1.34 2.4B
Compass Diversified 5.7 15.89 1.3 1.6B
United Bankshares, Inc 5.68 11.67 0.59 2.5B
Assurant, Inc 5.6 12.44 1.15 6.9B
South Jersey Industries, Inc 5.59 16.11 0.5 2.1B
Associated Banc-Corp 5.54 5.99 0.5 2B
Regions Financial Corporation 5.52 16.78 0.61 10.8B
Highwoods Properties, Inc 5.47 11.68 1.49 3.6B
Principal Financial Group, Inc 5.47 7.77 0.72 11.2B
TCF Financial Corporation 5.46 8.19 0.69 3.9B
Kimco Realty Corporation 5.44 5.37 0.93 5.2B
International Paper Company 5.4 10.79 2.32 17B
Old Republic International Cor 5.39 8.24 0.79 4.6B
Franklin Resources, Inc 5.38 7.6 0.85 9.9B
Xerox Holdings Corporation 5.37 6.73 0.71 4B
Cathay General Bancorp 5.35 7.68 0.79 1.8B
Newell Brands Inc 5.35 11.18 2.08 7.3B
American Financial Group, Inc 5.35 9.07 0.97 6B
The Hanover Insurance Group, I 5.34 11.67 1.18 3.6B
FirstEnergy Corp 5.34 11.44 0.57 15.7B
Domtar Corporation 5.22 19.09 0.63 1.5B
Columbia Banking System, Inc 5.22 12.46 0.81 1.8B
Sandy Spring Bancorp, Inc 5.22 14.45 0.78 1.1B
Hewlett Packard Enterprise Com 5.21 6.27 0.73 11.9B
Safety Insurance Group, Inc 5.18 11.69 1.27 1B
Bank of Hawaii Corporation 5.17 11.29 1.53 2.1B
Duke Energy Corporation 5.15 5.68 0.44 20.5B
Public Storage 5.14 3.61 0.49 4.4B
Apollo Global Management, Inc 5.11 18.22 2.41 10.2B
OGE Energy Corp 5.1 14 1.7 6.1B
The Kraft Heinz Company 5.08 11.29 0.78 38.5B
National Retail Properties, In 5.08 19.98 1.03 4.4B
Newmark Group, Inc 5.06 3.32 1.3 1.1B
Edison International 5.05 12.26 1.12 18.4B
Greif, Inc 5.04 9.5 1.41 1.7B
Omnicom Group Inc 5.02 9.74 2.68 11.3B
Fidelity National Financial, I 5 8.53 1.44 9.6B

Which one will you buy?