In a rate-easing cycle, dividend stocks become more attractive for income investors. This is especially so for stocks yielding above 5%.
However, as we have explored before, high yield does not mean it is a good investment.
Today, we will shine the spotlight on three stocks yielding above 5%: Mapletree Industrial Trust (MIT), Singapore Airlines (SIA), and Venture Corporation Limited.
Mapletree Industrial Trust (MIT) – Logistics and Data Centres Exposure
Mapletree Industrial Trust (SGX: ME8U), or MIT, is a real estate investment trust (REIT) that focuses on data centres (DCs) and industrial properties.
For the first quarter of the fiscal year ending 31 March 2026 (1QFY25/26), the REIT declared a distribution per unit (DPU) of S$0.0327, a 4.7% decline year-on-year (YoY).
At a current share price of S$2.16, MIT has a yield of 6.2%.
Overall occupancy rate remains resilient at 91.4%, though it was a slight decline from 91.6% in 4QFY2024/2025.
Rental reversion is a bright spot, with the company recording a positive weighted average rental reversion rate of 8.2% across its Singapore properties.
MIT is moderately leveraged, with an aggregate leverage ratio of 40.1%.
The REIT has total borrowings of S$3.7 billion.
Given that 79.7% of its debt is fixed and hedged, MIT might not benefit as much from lower rates when it refinances its loans.
MIT is well-positioned to capitalise on the secular growth trend of AI due to its exposure to DCs.
Currently, 54.8% of its AUM is tied to DCs spread across Singapore (3.3%), North America (44.2%), and Japan (7.3%).
The company is also strategically reshuffling its portfolio by divesting from mature industrial properties and redeploying the proceeds into DCs and new logistics projects across Asia, including Japan.
Investors should take note of the risks of MIT’s rising expenses: higher property operating expenses and higher borrowing costs from the repricing of maturing interest rate swaps.
MIT’s sizable exposure to North America also presents currency risk.
Singapore Airlines (SIA) – High Yield but Highly Cyclical
Singapore Airlines Limited (SGX: C6L), SIA, has paid generous dividends since recovering from the pandemic.
Since SIA resumed paying dividends in the fiscal year ended 31 March 2023 (FY22/23), the company has paid out a cumulative dividend per share of S$1.26, which is 19% of its current share price of S$6.55.
However, its most recent payment of S$0.40 per share for FY2024/2025 represents a 16.7% decrease YoY.
At S$6.57, this represents a trailing yield of 6.1%.
In August 2025, the airline’s passenger load factor (PLF) was 88.0%, an increase from 85.7% YoY but declining from June’s 88.7% and July’s 88.5%.
Passenger yield for its latest quarter (Q1FY25/26) declined 2.9% YoY to S$0.10/km.
Net profit slumped by nearly 59% YoY due to an increase in non-fuel costs.
While management remains somewhat upbeat about its profit outlook, investors should be mindful of further earnings pressure.
Leverage is manageable with a debt-to-equity (D/E) ratio of 0.73 times.
Net operating cash flow remains robust at S$4.71 billion for FY2024/25, an impressive margin of 24.1% (SIA does not disclose quarterly cash flows).
SIA’s dividend sustainability is supported by its robust cash balance of S$9.8 billion and its ability to generate solid cash flows.
A potential slowdown, higher oil prices, and intensified competition are risks to SIA’s earnings.
Venture Corporation – 5% Yield with a Cash Rich Balance Sheet
Venture Corporation Limited (SGX: V03) is a global electronics manufacturing services and technology solutions company.
The group stands out with customers hailing from various sectors, including life sciences, networking and communications, and industrials.
The group boasts an impressive dividend track record, having paid a total dividend of S$0.75 per share annually since FY2020.
With a current share price of S$14.25, it has an annualised yield of 5.6%.
Venture Corporation stands out due to its earnings stability, well-diversified across multiple industries, and strong cash flow generation.
In 1H2025, the group reported a net operating cash flow of S$149.8 million, reflecting a 11.9% margin.
The growing demand for technology like AI, robotics, and automation will fuel Venture Corporation’s future growth.
The company’s diverse manufacturing portfolio includes high-growth areas such as life sciences and medical technology, opening up new growth vectors.
On the other hand, it faces risks relating to global tech cycles, where any slowdown in spending would pressure Venture Corporation’s earnings.
Comparing the three companies
MIT is a stable REIT with strong structural growth drivers in data centres and logistics.
Meanwhile, SIA is a cyclical business that depends on travel demand.
Rounding things off, Venture Corporation is a consistent dividend payer that is linked to global electronics cycles.
Get Smart: Should Investors Buy Them Due to Their High Yields?
While it is tempting to chase yields above 5%, investors must weigh the sustainability of dividends against the cyclicality of the business.
MIT is a steady dividend payer but is exposed to refinancing and FX risks.
SIA has been a generous dividend payer post-pandemic, but its dividend payments can fluctuate wildly depending on cyclical travel demand.
Venture has been stable historically, but the group’s earnings are linked to tech demand.
Instead of blindly chasing high yields, you should always evaluate the quality of cash flows to determine if the current payout is sustainable.
We’ve found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here.
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Disclosure: Wesley does not own shares in any of the companies mentioned.
