Nothing is forever.
But when it comes to investing, thinking about stocks you would be willing to hold for your lifetime can be an excellent way to start.
The thought process will likely lead you to companies that have a strong market position within their sector or are latching on to sustainable, long-term trends.
Such businesses have attributes that allow them to remain resilient through good times and bad.
From there, you need to keep an eye out for a great track record and catalysts that can ensure continued growth.
What’s more, these businesses may also pay out growing dividends over time, allowing you to enjoy an increasing stream of passive income.
Here are four Singapore stocks that you can consider owning long enough to hand down to the next generation.
DBS Group (SGX: D05)
As Singapore’s largest bank, DBS needs no further introduction.
The lender remains the pillar of Singapore’s economy and is the bellwether of blue-chip stocks.
DBS has performed admirably in the last 24 months and shown its resilience in the face of the pandemic.
Armed with a 9% year on year increase in its loan book and higher fee income for the first nine months of 2021 (9M2021), the bank reported a record net profit of S$5.4 billion for the period.
The lender also paid a quarterly dividend of S$0.33 after Singapore’s central bank lifted dividend restrictions on all local banks.
The annualised dividend of S$1.32 represents a forward dividend yield of 3.9%.
Moving forward, impending interest rate rises should bode well for DBS. Other initiatives such as its newly-established digital exchange will also broaden its income streams.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator possesses a natural monopoly and is a steady stock to own through good times and bad.
For its recent fiscal year 2021 ended 30 June 2021, revenue stayed flat at S$1 billion while net profit dipped slightly by 6% year on year to S$445 million.
The dip in net profit was principally due to expenses related to acquisitions that SGX made during the fiscal year.
The group declared a final dividend of S$0.08, bringing the full-year dividend to S$0.32.
Currently, shares of SGX offer a trailing 12-month dividend yield of around 3.4%.
Looking ahead, SGX believes it is positioned in a sweet spot to grow further in the years to come.
Special purpose acquisition companies (SPACs) may also liven up the stock market this year as Vertex Ventures, Tikehau Capital and Novo Tellus have become the first three outfits to receive an eligibility-to-list for their respective SPACs.
Raffles Medical Group (SGX: BSL)
Healthcare has been pushed to the forefront in our battle against the COVID-19 virus.
And no company does it better than Raffles Medical Group, or RMG.
Founded 46 years ago in 1976, RMG is an integrated healthcare provider operating in 14 cities within five countries.
The group owns stakes in three tertiary hospitals and more than 100 multi-disciplinary clinics offering a wide variety of services.
The healthcare provider reported a sparkling set of results for its fiscal 2021 first half (1H2021).
Revenue jumped by 42.4% year on year to S$343.8 million while net profit more than doubled year on year to S$39.4 million from S$17.2 million.
RMG continues to render its assistance to the government by helping with border screenings, pre-event testing and pre-departure swabbing.
Over in China, its hospitals in Chongqing and Beijing have seen increased patient loads as the operating environment improves.
Its newly-completed, 400-bed Shanghai hospital has also started receiving patients and provides a suite of comprehensive medical services.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT is another play on the healthcare theme.
The REIT owns a portfolio of healthcare assets worth around S$2.3 billion as of 30 September 2021.
The trust’s portfolio comprises three private hospitals in Singapore, 52 nursing homes in Japan, and strata-titled lots and units in a specialist clinic in Kuala Lumpur, Malaysia.
Parkway Life REIT has an impressive track record of uninterrupted core distribution per unit (DPU) increases since its IPO in 2007.
The REIT has continued this streak with its recent 9M2021 earnings.
Although gross revenue dipped by 0.3% year on year, DPU inched up by 2.9% year on year to S$0.1051.
Based on its annualised DPU of S$0.1401, units of the REIT yield around 2.7%.
The REIT just signed new master lease agreements for its Singapore hospitals that extend their tenancy up till 31 December 2042.
Get Smart: Ideal buy and hold candidates
Identifying a good company that you are willing to hold for life is the first step.
The next move would be to figure out the stock’s valuation and how much you want to buy for each stock.
At The Smart Dividend Portfolio, we have curated a select group of companies that are ideal to buy and hold for life.
Our portfolio comprises 24 high-quality names that are carefully chosen because of their strong attributes and long-term catalysts.
Join us now if you are interested in constructing your investment portfolio of strong, dividend-paying names.
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Disclaimer: Royston Yang owns shares of DBS Group, Raffles Medical Group and Singapore Exchange Limited.
