With the recent cut-off yield on the six-month Singapore Treasury bill (T-bill) falling to 3.5%, investors seeking income are increasingly turning to alternative options.
While T-bills offer security and guaranteed returns, their relatively modest yield in today’s high-interest-rate environment may not be enough for some investors.
Investors can explore opportunities to diversify their portfolio beyond T-bills by considering Singapore-listed stocks with attractive dividend yields.
Investing in shares not only provides the potential for capital appreciation but also allows individuals to reinvest dividends, compounding their returns over time.
This strategy offers a dual benefit of income and the possibility of growing the investment through reinvestment.
By incorporating these alternatives, investors can achieve a more diversified and potentially rewarding investment portfolio.
This is where Singapore-listed stocks with attractive dividend yields come in, potentially providing both income and capital appreciation.
Here are three Singapore-listed stocks currently offering dividend yields surpassing the T-bill rate, each with its own unique appeal:
1. DBS Group Holdings (SGX: D05)
Sitting atop the throne of Southeast Asia’s banking world, DBS isn’t just a financial powerhouse; it’s a dividend champion with a proven track record of rewarding shareholders.
Its diverse business model spans consumer banking, wealth management, and investment banking, generating stable income streams that fuel its impressive 6.7% dividend yield.
The bank just announced a stellar set of results for 2023 and upped its quarterly dividend from S$0.48 in the previous quarter to S$0.54.
In addition, the lender also announced a bonus issue of one share for every 10 shares held.
As interest rates climb, DBS is poised to reap the benefits through higher net interest margins, potentially sweetening the dividend pot in the future.
So, if you’re seeking a rock-solid company with a commitment to shareholder returns, DBS might be the kingpin for your portfolio.
2. Keppel Ltd (SGX: BN4)
Keppel Ltd is an asset manager with a strong track record of returning capital to shareholders in the form of cash dividends and other methods.
The blue-chip group reported its highest net profit ever recorded and increased its annual dividend to S$0.34.
For 2023, the total dividend amounted to nearly S$2.70 per share and includes the distribution-in-specie for shares of Seatrium Limited (SGX: S51) and distribution-in-specie of Keppel REIT (SGX: K71U) units.
With a current yield of 4.8% for its ordinary cash dividends, Keppel offers a compelling option for investors seeking a history of consistent returns.
3. Mapletree Industrial Trust (SGX: ME8U)
The e-commerce boom is a freight train, and Mapletree Industrial Trust, or MIT, is riding shotgun!
This REIT specializes in high-quality industrial properties across Singapore and the US, perfectly positioned to capitalise on the surging demand for logistics and warehousing space.
This translates to steady rental growth and consistent distributions, currently offering a distribution yield of 5.6%.
If you’re looking to tap into the e-commerce wave and enjoy reliable dividend income, Mapletree could be the key that unlocks your investment potential.
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