Valentine’s Day is a day for celebrating friendship and love, and it’s common for couples and friends to give gifts to one another.
But rather than a physical gift, you can consider gifting your partner or loved one a special gift – that of dividend-paying shares.
Such gifts can keep giving many years down the road as these shares can continue to churn out dividends for the recipient.
Dividends are also highly sought after as a source of attractive passive income that can help you ease into your retirement.
Here are four solid dividend-paying Singapore stocks that you can consider gifting for Valentine’s Day.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban malls and an office building.
The REIT has total assets under management of around S$7.1 billion as of 30 September 2024.
Being a REIT, FCT has to pay out at least 90% of its earnings as distributions to qualify for tax incentives.
For its fiscal 2024 (FY2024) ending 30 September 2024, the retail REIT saw its gross revenue dip by 4.9% year on year to S$351.7 million.
Net property income (NPI) fell by 4.6% year on year to S$253.4 million.
The declines were because of the absence of contributions from Changi City Point which was sold off in October 2023, along with lower contributions from Tampines 1 Mall because of an asset enhancement initiative.
If not for the above, revenue and NPI for the REIT would have risen by 3.5% and 3.4%, respectively.
FCT declared a distribution per unit (DPU) of S$0.12042 for FY2024, down just 0.9% year on year.
The beauty of owning FCT is that heartlanders will continue to patronise its malls, thus bringing business to the tenants within the mall.
Hence, these retail malls can enjoy consistent traffic flow and churn out dependable rental income that can be used to pay out future distributions.
Sheng Siong (SGX: OV8)
Sheng Siong is a supermarket operator with 74 outlets across Singapore.
These outlets are located in the heartland areas and are stocked with a wide variety of merchandise such as live and chilled produce, daily necessities, and essential household products.
Sheng Siong delivered a strong set of results for the first nine months of 2024 (9M 2024).
Revenue rose 4% year on year to S$1.1 billion while gross profit increased by 6% year on year to S$328.8 million, reflecting a gross margin of 30.5%.
This gross margin was a slight improvement from the 29.9% back in 9M 2023.
Net profit came in at S$109.1 million, up 8.7% year on year.
The business also generated a positive free cash flow of S$141.3 million, allowing the retailer to pay out consistent dividends over the years.
For the first half of 2024, Sheng Siong paid out an interim dividend of S$0.032.
Back in 2023, the retailer paid a total of S$0.0625 per share in dividends.
The supermarket retailer opened four new stores in 9M 2024 and is slated to open more in 2025, which can help to boost its business and ensure that it can carry on paying dividends.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a retailer of luxury watches and owns 65 boutiques in 14 cities.
The watch retailer has been a consistent payer of dividends over the years even as the industry goes through up and down cycles.
For THG’s first half of fiscal 2025 (1H FY2025) ending 30 September 2024, revenue dipped by 3% year on year to S$548.8 million.
With a lower share of profits from associates, THG saw its net profit fall 20% year on year to S$61.4 million.
Despite the lower profit, THG maintained its interim dividend of S$0.02.
The luxury watch retailer also churned out a positive free cash flow of S$39.4 million.
For fiscal 2024, THG continued to pay out a final dividend of S$0.06 despite its net profit dipping by 9% year on year to S$156.5 million.
Singtel (SGX: Z74)
Singtel needs no introduction, being Singapore’s largest telco by market capitalisation.
The group not only offers mobile and broadband services but also owns data centres and offers cybersecurity.
But did you know that the blue-chip group pays out dependable, twice-yearly dividends?
For its first half of fiscal 2025 (1H FY2025) ending 30 September 2024, Singtel’s operating revenue remained stable at close to S$7 billion.
However, operating profit climbed 27% year on year to S$738 million while underlying net profit rose 6% year on year to S$1.2 billion.
The telco declared a total interim dividend of S$0.07 comprising a core ordinary dividend of S$0.056 and a value realisation dividend of S$0.014 from capital recycling.
The good news is that Singtel’s core interim dividend has risen for three consecutive years, lending credence to the fact that the telco is a reliable dividend payer that is seeing its dividends rise over the years.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
