Singapore stocks are well-known for paying generous dividends.
But if you plan to retire happily, you need more than just a consistent payout.
You also need to filter out reliable stocks and boast long track records of performance through good times and bad.
Blue-chip stocks possess these attractive attributes with most of them paying out a dividend.
REITs are also suitable for retirement as this asset class is known for paying out dependable dividends.
Here are four reliable stocks that can better prepare you for your golden years.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group maintains a platform for the buying and selling of equities, bonds, and derivatives.
SGX reported a solid set of earnings for the first half of fiscal 2024 (1H FY2024) ending 31 December 2023.
Revenue rose 3.6% year on year to S$592.2 million due to higher revenues from the currencies and commodities division.
Net profit dipped by 1% year on year to S$281.6 million but this was because of non-cash, one-off items.
Excluding these, SGX’s underlying net profit would have increased by 6.2% year on year to S$251.4 million.
The bourse operator also generated a positive free cash flow of S$230.2 million, up 41.1% year on year.
An interim quarterly dividend of S$0.085 was paid out, taking 1H FY2024’s total dividend to S$0.17, a 6.3% increase from the previous year.
SGX pays out an annualised dividend of S$0.34, translating into a prospective dividend yield of 3.6%.
Because of its monopolistic position, SGX should provide a reliable base of revenue and earnings for conservative investors.
Its consistent free cash flow generation and rising dividends should also serve income investors well as they rely on SGX for a stream of steadily increasing dividends.
The group is committed to maintaining a mid-single-digit percentage increase in its dividend per share over the medium term.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two in Germany, and three in Australia.
The REIT’s assets under management (AUM) stood at S$24.5 billion as of 31 December 2023.
CICT has reported a robust set of earnings which also saw its portfolio valuation rise year on year.
For 2023, gross revenue climbed 8.2% year on year to S$1.6 billion while net property income (NPI) improved by 7% year on year to S$1.1 billion.
The REIT’s distribution per unit (DPU) increased by 1.6% year on year to S$0.1075.
For 1Q 2024, CICT continued this momentum with a 2.6% year-on-year increase in gross revenue to S$398.6 million.
NPI improved by 6.3% year on year to S$293.7 million.
The REIT reported solid operating metrics with a portfolio occupancy of 97% and positive rental reversions for both its retail and commercial segments.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 56 properties in the US, 83 in Singapore, and one in Japan.
The REIT’s AUM stood at S$8.9 billion as of 31 March 2024.
MIT boasts a strong sponsor in Mapletree Investments Pte Ltd, an investment firm which owns and manages S$77.5 billion of office, retail, logistics, industrial, and residential assets.
The REIT pulled off a resilient performance for its fiscal 2024 (FY2024) ending 31 March 2024 despite the twin challenges of inflation and high interest rates.
Gross revenue inched up 1.8% year on year to S$697.3 million while NPI edged up 0.6% year on year to S$521 million.
DPU, however, slid 1% year on year to S$0.1343.
DPU held up well despite the headwinds and the REIT reported a high occupancy rate of 91.4% across its portfolio.
The portfolio weighted average rental reversion also came in at a positive 6.6%.
MIT’s aggregate leverage stood at 38.7% as of 31 March 2024, allowing sufficient headroom for the REIT to gear up for further acquisitions.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban malls and one office building.
AUM stood at approximately S$7.1 billion as of 31 March 2024.
FCT’s portfolio of suburban malls ensures that the REIT enjoys consistent footfall and tenant sales as these malls are located near heartland HDB areas.
The REIT reported a 7.2% year on year decline in revenue for the first half of fiscal 2024 (1H FY2024) ending 31 March 2024.
NPI tumbled 8.4% year on year to S$124.6 million
The fall was because of ongoing asset enhancement works at Tampines 1 coupled with the divestment of Changi City Point in October last year.
Excluding these, revenue and NPI would have grown by 2.9% and 2.1% year on year, respectively.
DPU for 1H FY2024 remained resilient, falling by just 1.8% year on year to S$0.06022.
FCT’s committed occupancy stood high at 99.9% and the REIT registered a positive rental reversion of 7.5% for the fiscal half-year.
For the latest quarter, shopper traffic and tenant sales enjoyed an 8.1% and 4.3% year-on-year increase, respectively.
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Disclosure: Royston Yang owns shares of the Singapore Exchange and Mapletree Industrial Trust.
