SINGAPORE: Adding dividend-paying stocks to your investment portfolio can provide a steady stream of passive income to supplement your earnings.
Here’s another way to receive ‘ang baos’ all year round – through these five Singapore stocks with reliable dividends, according to The Smart Investor.
1. Boustead Singapore Limited
Boustead Singapore Limited, or BSL, operates across four key divisions: energy engineering, real estate, geospatial technology, and healthcare. Its consistent free cash flow generation has made it a reliable payer of dividends.
From fiscal 2018 to FY2020, annual dividends stood at S$0.03, increasing to S$0.04 from FY2021 to FY2023. Additionally, a special dividend of S$0.04 per share was paid out in FY2021.
Recent financials for 1H FY2024 show promising results, with revenue soaring by 49% year on year to S$367.9 million and core net profit jumping by 89% to S$25.8 million.
2. United Overseas Bank Ltd
United Overseas Bank, or UOB, is Singapore’s third-largest bank and has a history of consistent dividend payouts. The bank’s interim dividend for 1H 2023 stood at S$0.85, higher than the previous year’s S$0.60.
UOB’s dividend has been on a steady rise since 2020, reaching S$1.35 per share in 2022. The bank reported a 5% year-on-year increase in core net profit to S$1.5 billion for 3Q 2023, indicating a potential for further dividend increases.
3. NetLink NBN Trust
NetLink NBN Trust plays a crucial role in Singapore’s broadband infrastructure. With a policy to distribute 100% of its cash available for distribution, the trust has seen its distribution per unit (DPU) steadily rise over time.
FY2021 saw a DPU of S$0.0508, increasing to S$0.0524 in FY2023. The trust’s recent 1H FY2024 financials show a slight increase in DPU to S$0.0265.
4. Sheng Siong Group Ltd
Sheng Siong is a prominent supermarket chain in Singapore known for its wide range of products. Despite the challenges posed by the pandemic, Sheng Siong has maintained its reputation as a reliable dividend payer.
Annual dividends increased from S$0.034 in 2018 to S$0.0622 in 2022. Although the interim dividend for 1H 2023 was slightly lower at S$0.0305 compared to the previous year, the retailer’s resilient earnings suggest potential for an attractive final dividend.
5. Credit Bureau Asia
Credit Bureau Asia provides credit and risk information solutions to various clients, including banks and multinational corporations.
The company reported a resilient set of earnings for 1H 2023, with revenue rising by 12.3% year-on-year to S$26.4 million and net profit improving by 15.6% to S$10.7 million.
With a consistent interim dividend of S$0.017 and a total dividend payout of S$0.034 for 2021 and 2022, Credit Bureau Asia shows reliability in rewarding its investors.
These Singapore stocks offer investors the opportunity to receive consistent dividends, akin to receiving ‘ang baos’ throughout the year.
However, investors should remember to conduct thorough research and consider their investment goals and risk tolerance before adding these stocks to their portfolios. /TISG
Read also: Boost your income with these 3 dividend-paying stocks to keep you funded through Feb 2024