If you’ve been working for several years, you should have saved up a fair bit of money.
It’s a good idea to think about how to deploy this money into investments, both to help you beat inflation as well as to build up a sturdy retirement fund.
However, different investors will have different investment objectives.
Income investors may desire to own a portfolio of REITs for their passive income flow.
But for myself, I prefer a healthy mix of blue-chip companies and smaller businesses that offer both stability, dividends, and some growth.
If I had S$30,000 to spare, here are four stocks that I will deploy the funds into.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a global technology, defence and engineering group serving clients in the aerospace, smart city, and public security sectors.
The group reported a robust set of earnings for fiscal 2021 (FY2021), with revenue increasing by 7.5% year on year to S$7.7 billion.
Net profit climbed by 9.3% year on year to S$570.5 million.
A final dividend of S$0.10 was declared, bringing the total FY2021 dividend to S$0.15 per share, unchanged from last year.
STE’s trailing dividend yield stood at 3.7%.
The group continues to witness a recovery in its commercial aerospace business and reported a robust order book of S$19.3 billion at the end of 2021, a three-year high.
STE plans to raise its FY2022 dividend to S$0.16 and has approved a policy to pay quarterly dividends of S$0.04 each, signalling confidence in its prospects.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank Ltd, or UOB, is one of Singapore’s three large local banks.
The lender reported a strong set of financial numbers for FY2021, with net profit hitting S$4 billion.
Its loan book grew 10% year on year while fee income hit a record high of S$2.4 billion due to higher wealth management and loan-related activities.
The bank’s net interest income should benefit from rising interest rates as the US Federal Reserve engages in monetary tightening to curb runaway inflation.
UOB is also poised to grow its franchise after its acquisition of Citigroup’s (NYSE: C) consumer banking business in four countries — Malaysia, Thailand, Indonesia, and Vietnam.
The bank paid out a total dividend of S$1.20 for FY2021, translating to a trailing dividend yield of 3.9% for its shares.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
It enjoys a natural monopoly and the group has paid out dividends since 2001 and is one of the few companies on the local bourse that pays out quarterly dividends.
SGX reported a slight year on year dip in net profit to S$219 million for its fiscal 2022 first-half earnings ended 31 December 2021.
Higher expenses and lower treasury income due to depressed interest rates were the main contributors.
The exchange operator believes it is in a sweet spot to grow and has identified key themes such as the growth in ETFs, ESG, and foreign exchange as catalysts that can power its future.
Three special purpose acquisition companies, or SPACs, also made their debut this year, offering investors yet another investment option for their portfolios.
SGX’s trailing annual dividend stands at S$0.32, and its shares offer a trailing 12-month dividend yield of 3.2%.
Q&M Dental Group (SGX: QC7)
Q&M Dental owns a total of 98 dental clinics in Singapore and owns the largest network of private dental outlets on the island.
In addition, the group also has 38 dental clinics and a dental supplies distribution business in Malaysia and owns a dental clinic in China.
Q&M Dental announced a sparkling set of earnings for FY2021.
Revenue hit a record high of S$205.6 million, surging by 49% year on year, while net profit nearly doubled year on year to S$39.4 million.
In line with the good results, the group declared a fourth interim dividend of S$0.01 per share, bringing the FY2021 dividend to S$0.04.
Its shares offer a trailing dividend yield of 7.7%.
Q&M has ambitious plans for its future.
The group intends to open at least 30 dental clinics per year in Singapore and Malaysia in the next decade.
It also plans to expand its clinical testing laboratory business and invest in promising medical and healthcare businesses.
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Disclaimer: Royston Yang owns shares of Singapore Exchange Limited.
