2022 has arrived, and it’s time once again to perform a check on your financial health.
A key test is on whether you have a handle on your monthly spend.
From there, you will be able to figure out how much income you will need every month.
Investing in dividend stocks is a good way to increase your passive income flow.
To do so, you should scout around for opportunities to park your money with reputable, cash-generating companies.
Here are four blue-chip stocks that are churning out a dividend yield of 4% or higher.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank and needs no further introduction.
The lender reported a stellar set of earnings for the first nine months of 2021 (9M2021), chalking up a record net profit of S$5.4 billion.
In tandem with the good results, DBS declared an interim dividend of S$0.33 for its fiscal 2021’s third-quarter (3Q2021).
The annualised dividend of S$1.32 translates to a forward dividend yield of 4% at a share price of S$32.66.
The group is riding high on its fee income which jumped by 17% year on year to a record of S$3.1 billion.
DBS’ loan book also grew at a healthy clip of 9% year on year.
Moving forward, the bank expects interest rates to head up because of higher inflation, which will boost its net interest income.
OCBC Bank (SGX: O39)
OCBC Bank is one of Singapore’s three big banks and has also reported a strong set of earnings for 3Q2021.
Net profit for the quarter climbed by 19% year on year to surpass S$1.2 billion even though net interest margin dipped slightly.
Loan growth was healthy, coming in at 6% year on year, while the lender’s wealth management division saw its assets under management grow by the same percentage to US$123 billion.
OCBC had restored its interim dividend to S$0.25 per share when Singapore’s central bank lifted dividend restrictions on the local banks due to an improving economic outlook.
If the bank also restores its final dividend to the pre-pandemic level for the fiscal year 2021, we could be looking at a full-year dividend of S$0.53.
This level of dividends translates to a dividend yield of 4.6% based on the share price of S$11.40.
Venture Corporation Limited (SGX: V03)
Venture Corporation is an electronic services provider that has an impressive clientele of over 100 global companies including Fortune 500 ones.
The group manages a portfolio of more than 5,000 products and solutions and employs 12,000 people worldwide.
The group enjoyed operating leverage when it reported its 9M2021 business update.
Revenue for the period inched up 0.8% year on year to S$2.2 billion while net profit rose by 3.2% year on year to S$217.4 million.
The electronics group is optimistic that there will be ongoing recovery and is planning to make strategic investments to propel its growth.
Meanwhile, Venture is also witnessing strong demand for its goods and services and expects this to continue.
The group paid out an interim dividend of S$0.25 for its fiscal 2021 first half.
The trailing 12-month dividend was S$0.75 per share, translating to a historical yield of 4.1% at the share price of S$18.31.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT that owns a diverse portfolio of 143 properties comprising data centres, flatted factories, and business parks.
The REIT reported a strong set of earnings for its fiscal 2022 first half (1H2022).
Gross revenue jumped by 40.1% year on year to S$283.6 million while distribution per unit (DPU) climbed by 14.2% year on year to S$0.0682.
Annualised DPU stands at S$0.01364, providing units of MIT with a distribution yield of 5% at the closing unit price of S$2.71.
The REIT’s aggregate leverage stands at 39.6% while the cost of debt remained low at 2.4%.
Get Smart: Sustainability is the key
The above dividend yields are high, but remember that sustainability is the key to a great investment.
At the Smart Dividend Portfolio, our focus is to select stocks that have a sweet mix of high dividend yields coupled with sustainability.
The above attributes ensure that investors can hold these stocks over the long term to enjoy a steadily increasing flow of passive income.
From 5-9 January, our most popular service, The Smart Dividend Portfolio will reopen at a steep discount. If you’re a dividend investor, keep a lookout for our sale announcement! Meanwhile, download your FREE report “Top 9 Dividend Stocks for 2022 – and 3 Tactical Shifts to Maximise Your Profits” and see if you can find more stock ideas today.
Disclaimer: Royston Yang owns shares of DBS Group and Mapletree Industrial Trust.
