Singapore’s Central Provident Fund (CPF) scheme is a splendid way for you to save and build your retirement savings.
In particular, the CPF Ordinary Account (OA) provides you with the flexibility to utilise the money for education or to purchase a property.
The account also yields an interest rate of 3.5% on the first S$20,000 and 2.5% for higher amounts.
CPF also gives you the option to invest the money in your OA in shares and other securities through the CPF Investment Scheme.
To make your money work harder, you should scout around for stocks that pay a dividend yield that’s higher than the interest rate offered by the CPF OA.
Here are four stocks with dividend yields exceeding 2.5%.
UMS Holdings Limited (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and their related products.
The group has been paying out consistent quarterly dividends over the years.
For its fiscal 2022 first half (1H2022), UMS announced record sales and earnings while declaring a dividend of S$0.01 per share.
UMS’ trailing 12-month dividend stands at S$0.05, giving its shares a trailing dividend yield of 3.8%.
Revenue for the group climbed 47% year on year to S$171.3 million for 1H2022.
Net profit increased by 23% year on year to S$39.5 million.
UMS’ order forecast remains strong as its key customer expects increased sales despite ongoing supply chain challenges caused by the Russia-Ukraine war.
Global semiconductor sales are also projected to rise from US$117.5 billion this year to US$120.8 billion in 2023.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with assets under management of S$8.8 billion as of 30 June 2022.
MIT’s portfolio comprises 85 properties in Singapore and 56 in the US and includes a mix of business parks, Hi-Tech buildings, and data centres.
The industrial REIT reported an encouraging set of earnings for its fiscal 2023’s first quarter (1Q2023) ended 30 June 2022.
Gross revenue climbed 31% year on year to S$167.8 million while net property income (NPI) rose 24% year on year to S$129.9 million.
Distribution per unit (DPU) inched up 4.2% year on year to S$0.0349.
MIT’s trailing 12-month DPU stands at S$0.1394, giving its units a trailing distribution yield of 5.5%.
The REIT is redeveloping its Kolam Ayer 2 cluster of three properties at a total cost of S$300 million, with expected completion in the first half of 2023.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-focused REIT with a portfolio of 11 shopping malls, five business parks, and four logistic park properties.
The portfolio had a total gross floor area of around two million square metres across 12 Chinese cities.
CLCT reported a good set of numbers for 1H2022, with gross revenue rising 12.7% year on year to S$199.3 million.
NPI climbed 15.9% year on year to S$139.5 million.
DPU, however, dipped by 3.1% year on year as an amount of S$3.6 million was retained for tenant relief due to China’s COVID-zero policy.
CLCT’s trailing 12-month DPU totalled S$0.086, giving its units a trailing distribution yield of 7.8%.
The REIT’s gearing stood at 38.6% with a cost of debt of 2.71%.
Fixed-rate debt was at 71% of total borrowings, thus mitigating a sharp rise in interest rates.
Management is preparing for the upturn through asset enhancement initiatives for CLCT’s malls.
Optimisation and reconfiguration will help to optimise the tenant mix and increase rental income, thereby benefitting DPU in the long run.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land Holdings Limited, or HKL, owns and manages more than 850,000 square metres of prime office and luxury retail properties in cities such as Hong Kong, Singapore, Beijing, and Jakarta.
HKL announced a resilient set of earnings for 1H2022, with revenue improving from US$885.8 million to US$894 million.
Underlying net profit increased by 8% year on year to US$425 million.
HKL maintained its interim dividend of US$0.06, unchanged from last year.
Coupled with last year’s final dividend of US$0.16, the total trailing 12-month dividend per share comes up to US$0.22.
HKL’s shares offer a trailing dividend yield of 4.6%.
Not sure which REIT to put your money in? Use our 7-step REIT checklist to find one that fits into your retirement plan. Checklist is inside our latest FREE report “Singapore REITs Retirement Plan”. Click here to download it now.
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Disclaimer: Royston Yang owns shares of Mapletree Industrial Trust.