Regarding dividends, income investors always look for a business that can pay them for years or even decades.
These are businesses where you can safely park your money and receive a passive income stream that you can use for your retirement.
When screening for such companies, it’s important to look at their business models and track record of paying out dividends to shareholders.
Blue-chip stocks make good candidates for dividend reliability, but non-blue-chip companies have demonstrated a solid dividend-paying record.
We highlight four attractive Singapore stocks that we believe can pay you dividends for life.
Haw Par Corporation Limited (SGX: H02)
Haw Par Corporation is a conglomerate with four distinct divisions – healthcare, leisure, investments, and property.
The group’s healthcare division owns the famous Tiger Balm brand of ointments and salves that are distributed and sold globally.
Haw Par has an impressive history of paying dividends every single year without fail.
The group paid an annual dividend of S$0.20 per share back from 2010 till 2017, then increased this to S$0.30 per share in 2018 through 2022.
The healthcare group upped its annual dividend to S$0.40 in 2023.
Haw Par also has a history of paying out special dividends periodically, with S$0.15 paid in 2015 and S$0.85 in 2018 (for its 50th Anniversary).
For the first half of 2024 (1H 2024), the group has continued this trend with a robust set of earnings.
Revenue rose 6.3% year on year to S$118.1 million while gross profit inched up 2.4% year on year to S$64.5 million.
Net profit climbed 17.1% year on year to S$122 million.
Haw Par reported healthy cash flows for 1H 2024 with an operating cash inflow of S$17 million and dividends received of S$79.1 million.
An interim dividend of S$0.20 was paid out, similar to a year ago.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation and offers a comprehensive range of banking, investment, and insurance services.
The bank has been a steady payer of dividends over the years through good times and bad.
OCBC continued to pay out dividends through both the Global Financial Crisis and the recent COVID-19 pandemic, with payouts of S$0.28 and S$0.318 in 2008 and 2020, respectively.
Since 2020, OCBC has been steadily increasing its annual dividend in tandem with rising interest rates.
The surge in interest rates had a positive effect on the lender’s net interest income and pushed its net profit steadily higher.
OCBC paid out S$0.53 in 2021, S$0.68 in 2022, and S$0.82 in 2023.
For 1H 2024, the blue-chip bank’s net profit hit a new record of S$3.9 billion, allowing it to further raise its interim dividend from S$0.40 to S$0.44.
The bank’s recent financial results for the first nine months of 2024 saw net profit hit a new high of S$5.9 billion, giving investors confidence that the lender may continue to increase its dividends.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator has an illustrious history of paying out dividends and has been doing so since 2003.
SGX’s annual dividend has been on a steady rise since 2009. The group paid out S$0.26 that year and for fiscal 2024 (FY2024) ending 30 June 2024, it had increased to S$0.345.
The group delivered a strong set of earnings for FY2024 with revenue edging up 3.1% year on year to S$1.2 billion.
Net profit excluding exceptional items rose 4.5% year on year to S$525.9 million.
Management also increased the quarterly dividend to S$0.09 per share for an annualised dividend of S$0.36.
SGX intends to maintain a mid-single-digit % increase in its dividend per share in the medium term.
On top of this, the group also aims to grow its revenue by between 6% to 8% per year.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four divisions – energy engineering, real estate, geospatial technology, and healthcare.
The engineering firm has been a consistent dividend payer and has paid out a dividend since fiscal 2003 (FY2003). Note that the group has a 31 March fiscal year-end.
BSL’s recent results also saw a continuation of its strong dividend-paying track record.
For its first half of fiscal 2025 (1H FY2025) ending 30 September 2024, revenue fell by 20% year on year to S$295.2 million because of decreased contributions from the Energy Engineering and Real Estate divisions.
However, net profit jumped 34% year on year to S$36 million because of higher gross margins along with interest income.
Core net profit, which excludes exceptional items, soared 48% year on year to S$38.3 million.
BSL has carried on its tradition of paying out dividends with the declaration of a S$0.015 interim dividend, unchanged from a year ago.
The group has snagged around S$96 million in new engineering contracts since the beginning of FY2025.
BSL’s order backlog stood at around S$157 million with a deferred services backlog of S$149 million for its geospatial division.
Barring unforeseen circumstances, the group expects to deliver a satisfactory performance for FY2025.
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Disclosure: Royston Yang owns shares of Singapore Exchange Limited and Boustead Singapore.
