Asian family sitting on a sofa with Dad in the middle holding a fan of cash.

SINGAPORE: Singapore’s Central Provident Fund (CPF) is an effective retirement-saving method.

However, with the CPF Ordinary Account (OA) offering a modest interest rate of 2.5%, many turn to the CPF Investment Account (CPFIA) to invest their CPF OA funds for potentially higher returns.

For stocks that offer potential growth, stability, and dividends, the Smart Investor suggests looking into these five stocks to include in your CPFIA portfolio for steady dividends.

1. VICOM Ltd

VICOM is a prominent provider of inspection and technical testing solutions. The company reported steady earnings for 2023.

With revenue rising by 3.3% year-on-year and a clean balance sheet boasting S$55.1 million in cash and zero debt, VICOM offers stability.

Though its dividend dipped slightly due to anticipated capital expenditures to establish a testing and inspection facility at Jalan Papan, the company’s financial health remains strong.

It declared a final dividend of S$0.0275 for 2023, with a full-year dividend of S$0.055

2. Haw Par Corporation Ltd

Haw Par, a conglomerate with divisions spanning healthcare, property, leisure, and investments, saw a 27.4% year-on-year rise in revenue and 46% year-on-year net profit in 2023.

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With a healthy balance sheet boasting around S$760 million in cash and investments and minimal debt of S$27.8 million, Haw Par’s increased dividend reflects its financial strength and growth prospects.

The company raised its final dividend from S$0.15 to S$0.20, bringing it to S$0.40 for 2023, marking a 33% year-on-year rise.

3. Boustead Singapore Limited

Boustead Singapore Limited (BSL) operates in energy engineering, real estate, healthcare, and geospatial technology.

Its robust earnings for the first half of fiscal 2024 showcased substantial growth, with a 49% year-on-year jump in revenue and a 19% year-on-year rise in net profit.

BSL stands out as a safe investment option with a solid balance sheet of S$428.5 million of cash and only S$43.4 million in debt.

Boustead Singapore Limited announced an interim dividend of S$0.015, the same as last year.

4. United Overseas Bank Ltd

United Overseas Bank (UOB), the smallest of Singapore’s big banks, reported impressive 2023 earnings.

With a 16% year-on-year increase in net interest income and a 25% year-on-year rise in net profit, UOB reflects stability and growth potential in the banking sector.

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United Overseas Bank declared a final dividend of S$0.85 for 2023, with a lender’s total dividend reaching S$1.70, marking a 26% increase from the previous year.

5. Parkway Life REIT

Parkway Life REIT, a healthcare REIT with properties across Singapore, Japan, and Malaysia, has consistently increased its distribution per unit (DPU), with a DPU of S$0.1477 for 2023.

With a 13.5% year-on-year rise in revenue and a 14.1% year-on-year climb in net property income, coupled with a low gearing ratio and borrowing costs of 1.27%, Parkway Life REIT offers stability and income growth potential.

These stocks present viable options for CPFIA investors seeking stability, growth, and dividends.

With careful consideration of each company’s financial health and performance, you can build a CPFIA portfolio to safeguard your retirement savings. /TISG

Read also: 3 Singapore blue-chip stocks the next generation can still benefit from

Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their own due diligence before making major financial decisions

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