Your CPF is designed to help fund your retirement with its guaranteed 2.5% a year.
Every dollar you move into the CPF Investment Scheme (CPFIS) has to beat this risk-free 2.5% – and you can only invest ordinary account (OA) savings above S$20,000.
So, the question isn’t “which stock pays the most?” It’s “which businesses are good enough to deserve retirement money?”
In this article, we look at three names that could fit this profile.
Why Blue Chips Are Well Suited for CPF Investing
CPF money has a decades-long horizon, especially when you’re just starting to invest.
This multi-year timeline favours established companies: long operating histories, real profits, sturdy balance sheets and lower blow-up risk than a small-cap punt.
You’re looking for consistent earnings growth, a sustainable dividend, strong return on equity and a durable competitive moat.
This is your retirement money after all; for that, quality should be prioritised over speculation.
Boring but dependable is what we’re looking for.
DBS Group Holdings Limited (SGX: D05), or DBS – The Banking Leader
One of Singapore’s biggest banks, DBS is a prime candidate for your retirement account.
Start with profitability, because DBS’s is exceptional.
The first quarter of 2026 (1Q2026) saw record headline income of S$5.95 billion and net profit of S$2.93 billion (up 1%), with the bank maintaining a return on equity (ROE) of 17.0%, even as interest rates fell.
That last part matters. Falling rates squeeze any bank’s margins – DBS’s group net interest margin (NIM) has compressed to 1.89% – yet profits held up, because the earnings mix is increasingly recurring rather than rate-dependent.
Wealth management fees hit a record S$907 million in 1Q2026, up 25%, on assets of S$492 billion.
Fee income is capital-light, sticky, and keeps paying when rates don’t.
The balance sheet remains formidable, with the bank’s latest non-performing loan (NPL) ratio at a low of 1.0%, while the common equity tier 1 (CET1) ratio remains healthy at 16.9%.
Finally, DBS boasts a terrific dividend-paying history, with annual payments stretching back to 2001.
For 1Q2026, the bank paid a quarterly dividend of S$0.81 per share – a S$0.66 in ordinary dividend plus a S$0.15 capital return – annualising to S$3.24 per share, and a forward yield of 4.5%.
In a nutshell, the provision of quality income and decent growth (wealth management fees), is exactly why banks earn a place in your CPF portfolio.
Singapore Exchange Limited (SGX: S68), or SGX – The Market Infrastructure Toll Booth
SGX runs Singapore’s only integrated securities and derivatives exchange.
This blessed position means that whether the market rises or falls, this bourse operator benefits from people trading by clipping a fee.
That’s about as recurring as revenue gets; revenue for the group has been steadily increasing in recent years, up 7.8% over the last twelve months (LTM) to S$1.4 billion.
The economics are genuinely beautiful: for the half ending 31 December 2025 (1H2026), operating performance was exceptional, and strong free cash flow generation of S$328.9 million makes up roughly 44.7% of turnover.
These metrics truly represent the hallmark of an asset-light business.
SGX has been a dividend-paying stalwart, not missing an annual payment over the past two decades.
The dividend has been growing steadily in recent years, a track record expected to continue: the current total dividend of S$0.375 per share is expected to grow to S$0.525 per share by FY2028 (ending 30 June 2028).
The key takeaway is that businesses with recurring revenue tend to generate solid returns for shareholders.
ST Engineering Ltd (SGX: S63), or STE – The Defensive Compounder
If you want visibility and a group exposed to long-term structural trends, few companies other than STE offer more.
STE ended March 2026 (1Q2026) with a record order book of S$34.5 billion, and approximately S$8 billion due for delivery this year. That’s revenue and earnings you can practically account for, spread across three industries experiencing strong demand: commercial aerospace, defence and urban solutions.
The earnings growth is real: STE disclosed that net profit for 1Q2026 rose faster than rebased revenue growth of 15%.
The group continues to strengthen its balance sheet, with borrowings reduced to S$4.8 billion (down 17% compared to end 2024) as of end 2025. Do note that STE does not disclose balance sheet metrics for 1Q2026.
STE has a solid dividend-paying track record, most recently paying an FY2025 dividend of S$0.23 per share (including a S$0.05 special dividend).
Better still, management has now adopted a formal progressive dividend policy, explicitly tying future payout to net profit growth.
What CPF Investors Should Remember
Think in decades: CPF money isn’t going anywhere for years. Short-term volatility is noise; don’t let it push you into selling a quality business.
Don’t chase yield just because it looks attractive. Focus on business durability rather than just a headline number.
Finally, spread your investments across multiple sectors and industries to protect your retirement.
Get Smart: Your Retirement Portfolio Deserves Great Businesses
In conclusion, CPF investing isn’t about quick gains.
It’s about compounding for decades, which sets the bar high: you have to beat a guaranteed 2.5% with money you can’t afford to lose.
Not many companies are worth that risk.
Here’s a test I’d use: can you explain, in a sentence, why a business will still be making money in 2046?
Most stocks don’t – if you can’t give one, it has no business being a part of your retirement portfolio.
2008. 2020. 2022. Three of the toughest stretches for Singapore markets in a generation. We found 6 SGX companies that paid a dividend every single year through all three. Our free report reveals the six companies and what allowed them to keep paying when others couldn’t. Click here to download now.
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Disclosure: Wilson H. does not own shares in any of the companies mentioned.
