A major concern for investors is whether companies can maintain their dividend payments during challenging economic times.
Many businesses will see demand for their goods and services fall when the economy enters a recession.
However, there are certain sectors, such as consumer staples and healthcare, which are more resilient and can hold their own when there is a downturn.
Here are three dividend-paying stocks that can continue to dish out reliable dividends even when the economy tanks.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare provider with a network of four hospitals and over 100 multi-disciplinary clinics.
The group employs around 2,900 employees and provides services such as health screening, specialist care, dental, and traditional Chinese medicine.
RMG reported a mixed set of earnings for 2024.
Revenue rose 6.3% year on year to S$751.6 million.
However, operating profit fell by 28.7% year on year to S$82.5 million because of fewer government grants along with the cessation of COVID-19 services.
Net profit tumbled nearly 25% year on year to S$62.2 million.
The hospital operator generated S$65.3 million of free cash flow for 2024.
Despite the decline in net profit, RMG declared and paid a final dividend of S$0.025, higher than the prior year’s S$0.024.
Management also announced the intention to buy back up to 100 million shares in the next two years.
Over in Chongqing, China, RMG’s hospital partnered with the local insurance scheme, which allows a patient to claim part of their medical expenses through insurance.
This initiative has made patients more comfortable seeking care, and for Shanghai, the reimbursement agreements have been approved; RMG will launch this initiative there soon.
Just this week, RMG and the First Affiliated Hospital of Chongqing Municipality signed a cooperation agreement to establish a new model for medical cooperation between the two countries.
Both parties will establish a medical consortium to facilitate the flow of medical resources, helping to enhance the overall medical services capabilities in Chongqing.
IHH Healthcare Berhad (SGX: Q0F)
IHH Healthcare Berhad is also an integrated healthcare player that owns a portfolio of trusted brands such as Mount Elizabeth, Gleneagles, Fortis, Parkway, and Acibadem.
The group offers a comprehensive range of primary and quaternary healthcare services, including laboratory, diagnostics, imaging, and rehabilitation.
The healthcare player reported a strong set of earnings for 2024, with revenue rising 16% year on year to RM 24.4 billion.
Core net profit (excluding exceptional items) shot up 32% year on year to RM 1.7 billion.
The group declared a final dividend of RM 0.055, taking its total dividend for 2024 to RM 0.10.
This dividend was also higher than the prior year’s total dividend of RM 0.09.
IHH Healthcare continued its momentum into the first quarter of 2025 (1Q 2025).
Revenue rose 6% year on year to RM 6.3 billion while core net profit increased by 5% year on year to RM 425 million.
For the quarter, the group also saw inpatient admissions inch up 4% year on year to 226,951 while the number of laboratory tests increased by 5% year on year to 26 million.
IHH Healthcare launched a multi-year transformation, which is intended to accelerate the growth of the business.
This plan includes seven focus areas – clinical excellence, patient experience, new care models, operational excellence, payor and regulator engagement, employee and doctor value proposition, and the advancement of technology, data, and artificial intelligence.
Management intends to increase IHH’s bed capacity by over 4,000 over the next six years to meet rising patient volume.
It also intends to expand medical tourism and invest in innovation and digitalisation to better take care of patients’ needs.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban retail malls and an office building in Singapore.
The REIT’s assets under management stood at S$8.1 billion as of 31 March 2025.
FCT’s portfolio of heartland malls enables the REIT to remain resilient during recessions, as many of its tenants sell essential items and daily necessities.
For the first half of fiscal 2025 (1H FY2025) ending 31 March 2025, the retail REIT reported that gross revenue rose 7.1% year on year to S$184.4 million.
Net property income increased by 7.3% year on year to S$133.7 million.
Distribution per unit (DPU) inched up 0.5% year on year to S$0.06054.
FCT also reported solid operating metrics to accompany its resilient results.
Retail portfolio committed occupancy stood high at 99.5%.
The portfolio also enjoyed a positive rental reversion of 9%, supported by healthy leasing demand.
The REIT’s recent announcement of the acquisition of Northpoint City South Wing should result in higher DPU.
This purchase should also unlock value creation opportunities through tenant mix strategies and asset enhancement initiatives (AEIs).
Meanwhile, FCT’s Hougang Mall AEI commenced in April 2025, which will see exciting new-to-mall concepts being introduced.
This AEI is targeted to be completed by the third quarter of 2026 and should generate a return on investment of around 7%.
Some companies cut dividends in a downturn. These 5 didn’t.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
