Dividends are an investor’s best friend.
Not only do they represent a tangible return on your investment, but they also provide a stream of passive income flowing straight into your bank account.
When it comes to dividends, income investors do not just look at the quantum but the reliability of the payout.
Hence, companies that have long track records of paying dividends are favoured by income investors for their stability.
Here are four reliable Singapore stocks that have dished out dividends for a decade or longer.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s only stock exchange operator.
Its platform allows for the buying and selling of a wide variety of securities such as stocks, bonds, and derivatives.
SGX has been paying out dividends for the past two decades, cementing its position as a dependable income stock.
Its annual dividend has risen from S$0.051 back in fiscal 2003 (ending 30 June 2003) to S$0.325 for fiscal 2023 (FY2023).
The bourse operator pays a quarterly dividend and reported a respectable set of earnings for its fiscal 2024 first half (1H FY2024).
Revenue inched up 3.6% year on year to S$592.2 million.
Net profit, however, dipped by 1% year on year to S$281.6 million.
Excluding exceptional and one-off items, SGX’s net profit for 1H FY2024 would have risen by 6.2% year on year to S$251.4 million.
The multi-asset exchange operator also upped its quarterly dividend from S$0.08 to S$0.085, bringing its annualised dividend to S$0.34 per share.
The blue-chip group is committed to maintaining a mid-single-digit year-on-year rise in its dividend per share, subject to earnings growth.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is an engineering conglomerate with four core divisions – energy engineering, real estate, geospatial technology, and healthcare.
Like SGX, BSL also has a long and storied history of paying out dividends.
The engineering giant has paid out a dividend in every single fiscal year (the group has a 31 March year-end) since FY2003.
The annual dividend started as just S$0.0075 back in FY2003 and has grown to S$0.04 for FY2023.
This dividend consistency has carried on into the first half of fiscal 2024 (1H FY2024) ending 30 September 2023.
For 1H FY2024, BSL saw revenue jump 49% year on year to S$367.9 million as the group saw increased contributions from all divisions except healthcare.
Its core net profit soared 89% year on year to S$25.8 million.
An interim dividend of S$0.015 was declared and paid out, unchanged from the prior year.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation and offers a comprehensive range of banking, insurance, and investment services.
The lender has been paying out dividends consistently for many years.
Its website states that its 2008 dividend came in at S$0.28 while its most recent dividend for 2023 totalled S$0.82, a nearly threefold increase.
The bank released an impressive set of earnings for 2023 as higher interest rates helped to boost its net interest income.
Total income climbed by 20% year on year to S$13.5 billion on the back of a 25% year-on-year increase in net interest income.
OCBC’s net profit for 2023 jumped 27% year on year to S$7 billion.
The bank increased its 2023 dividend by 21% year on year to S$0.82 and reported healthy asset quality.
It also has the ambition of adding S$3 billion in incremental revenue over the next three years as part of its rebranding effort.
Investors can expect its dividend to trend upwards in tandem with its higher earnings as the CEO has reiterated that the 50% dividend payout ratio will be maintained.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare player with a network of four hospitals and more than 100 multi-disciplinary clinics offering a comprehensive range of medical and diagnostic services.
The group has an impressive history of paying out dividends since 2010.
Back then, the annual dividend stood at S$0.0116 and fast forward to 2022 and RMG’s dividend has risen to S$0.038.
For 2023, the integrated healthcare group reported a downbeat set of earnings as revenue from COVID-19 activities ground to a halt.
Despite this, RMG still managed to pay out a dividend to its shareholders.
2023’s revenue fell by 14.1% year on year to S$706.9 million while its net profit tumbled by 37.1% year on year to S$90.2 million.
A first and final dividend of S$0.024 was declared.
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Disclosure: Royston Yang owns shares of Singapore Exchange Limited, Boustead Singapore Limited and Raffles Medical Group.
