Core Insights - Many Singapore investors are attracted to dividends for the steady income they provide, but there are risks associated with chasing high yields without understanding the underlying financial health of the companies [1][2] Mistake 1: Confusing High Yield with High Return - High dividend yields of 8% to 10% often indicate underlying financial struggles within a company, such as declining earnings or cash flow issues [3][4] - The case of Hyflux illustrates how high yields can mask financial problems, leading to significant losses for investors when the company collapsed [5][6] Mistake 2: Ignoring Dividend Sustainability - Sustainable dividends come from companies with strong earnings, cash reserves, and manageable debt levels [9][10] - Keppel Infrastructure Trust exemplifies a resilient income portfolio, with a 31.2% year-on-year increase in distributable income and a stable DPU supported by long-term contracts [11][12][13][14] Mistake 3: Overloading on REITs and Income Plays - Heavy concentration in REITs can be risky, especially during periods of rising interest rates, which can lead to higher refinancing costs and reduced distributions [15][16] - Suntec REIT's experience from 2022 to 2024 highlights how high yields can be deceptive, as its DPU fell significantly due to increased borrowing costs [17][18] Comparison of Companies - ST Engineering, despite a lower yield of about 2%, has shown consistent dividend stability and growth, supported by strong revenue and a solid order book [19][20][22][23] - The contrast between ST Engineering and leveraged REITs like Suntec REIT emphasizes the importance of sustainable income over high headline yields [23] Diversification Strategy - A well-rounded investment portfolio should include a mix of reliable REITs, infrastructure trusts, and growth-oriented companies to mitigate risks associated with yield fluctuations [24][25] Conclusion for Investors - Focusing solely on high yields can lead to poor long-term results; instead, investors should prioritize companies with stable cash flows and a history of consistent dividend payments [26][28]

Core Insights - Critical Infrastructure Technologies Ltd. (CiTech) has signed a Mutual Non-Disclosure Agreement (NDA) with Terma A/S to facilitate collaboration in developing advanced mobile communications and security solutions [1][3]. Group 1: Collaboration and Technology Development - The partnership aims to address the increasing threat of unauthorized drones in EU airspace, particularly around airports, by deploying CiTech's autonomous 20-metre Nexus tower equipped with Terma's surveillance technologies [2]. - Following the NDA, CiTech and Terma are preparing a Memorandum of Understanding (MoU) to formalize their collaboration and outline areas for deeper technical cooperation and joint solution development [4]. - The agreement highlights CiTech's strategy to expand its international partnerships with established leaders in defense and aerospace technology, enhancing its Nexus platform and other advanced solutions for various sectors [5]. Group 2: Company Background and Product Focus - CiTech is focused on creating autonomous, high-capacity, rapidly deployable technology aimed at sectors such as mining, defense, border security, and emergency services, with its first product, the Nexus 16, designed for critical mobile telecommunications [8]. - The company has completed the research and development phase and is currently in the process of commercializing its products, which utilize patented technologies to overcome limitations of existing communication solutions [9].