Income investors focus their attention on the dividends that a stock pays.
These dividends constitute a useful source of passive income that can sustain you during your retirement.
The good news is that as these dividends rise over time, investors are willing to pay more for the stock.
Hence, an income investor can enjoy both capital appreciation and an increasing flow of dividends over time.
Here are five dividend-paying Singapore stocks that income investors can include in their buy watchlists.
Daiwa House Logistics Trust (SGX: DHLU)
Daiwa House Logistics Trust, or DHLT, is a logistics REIT with a portfolio of 18 properties across Japan (17) and Vietnam (1).
For 2024, the REIT reported a 4.6% year-on-year decrease in gross revenue to S$57.1 million, attributed to the weakness of the Japanese Yen against the Singapore Dollar.
Net property income fell by 3.2% year on year to S$43.9 million.
The industrial REIT’s distribution per unit declined by 8.2% year on year to S$0.0479.
At a unit price of S$0.56, shares of DHLT offer a trailing distribution yield of 8.6%.
The REIT maintained a high portfolio occupancy of 97.6% as of 31 December 2024.
The weighted average lease expiry (WALE) by gross rental income was also high at 6.6 years.
For leases that were expiring in 2024, these were renewed with a weighted average rent uplift of 5%.
DHLT’s aggregate leverage stood at 38.5% with a weighted average cost of debt of 1.66%, allowing the REIT sufficient debt headroom to conduct debt-financed acquisitions.
Frencken (SGX: E28)
Frencken is a global technology solutions company offering a comprehensive range of product solutions spanning the entire value chain.
The group owns facilities in Singapore, Malaysia, China, and the Netherlands.
Revenue for 2024 improved by almost 7% year on year to S$794.3 million.
Gross profit did better, rising by 17.7% year on year to S$115.3 million.
Frencken’s 2024 net profit stood at S$37.1 million, up 14.3% year on year.
The product solutions group also generated a positive free cash flow of S$34.9 million, climbing 58% year on year.
The group paid out a final dividend of S$0.0261, 14.5% higher than the S$0.0228 paid out a year ago.
At a share price of S$1.01, Frencken’s shares offer a trailing dividend yield of 2.6%.
Management is cautiously optimistic and expects to post higher revenue for the first half of 2025 (1H 2025) compared to the second half of 2024.
APAC Realty (SGX: CLN)
APAC Realty is a real estate services provider with close to 24,700 advisors across 590 offices in 13 countries.
The group also holds the exclusive ERA regional master franchise rights for 17 countries.
APAC Realty reported a mixed set of results for 2024.
Revenue inched up 0.7% year on year to S$561 million, but net profit tumbled 38.8% year on year to S$7.2 million.
The weakness was due to lower contributions from new home sales as a result of a lower number of project launches in Singapore last year.
However, free cash flow stayed healthy at S$8.4 million for 2024.
A final dividend of S$0.012 was proposed, slightly below the S$0.014 paid out a year ago.
Coupled with the interim dividend of S$0.009, the total dividend for 2024 came up to S$0.021, giving APAC Realty’s shares a trailing dividend yield of 5.3%.
Management expects 29 new home launches this year, representing more than 15,000 new homes.
The Singapore property market, however, is expected to continue showing signs of moderation.
UOB Kay Hian (SGX: U10)
UOB Kay Hian, or UOBKH, is one of Asia’s largest brokerage firms and has more than 80 branches worldwide.
2024 saw revenue increase by 13.3% year on year to S$670.3 million.
Net profit surged 31% year on year to S$223.7 million.
The brokerage firm upped its final dividend by 29.3% year on year to S$0.119.
Shares of UOBKH offer a trailing dividend yield of 6.7% at a share price of S$1.77.
Higher volatility, along with attractive yields, is encouraging more customers to trade in derivatives and structured products.
Management believes that China’s pro-growth policies should be positive for the market, but Trump’s recent tariffs cast a pall on the brokerage business as investors may hold back on committing to investments.
CSE Global (SGX: 544)
CSE Global is a systems integrator providing electrification, communications, and automation solutions across various industries.
The group has a presence across 15 countries and employs more than 2,000 staff worldwide.
For 2024, revenue increased by 18.8% year on year to S$861.2 million.
Gross profit improved by 20.7% year on year to S$241.1 million, and net profit shot up 63.2% year on year to S$36.8 million.
Excluding exceptional items, CSE Global’s net profit would have risen by close to 17% year on year to S$26.3 million.
Despite the strong result, the group reduced its final dividend to S$0.0115 from S$0.015 a year ago.
Together with the interim dividend of S$0.0125, 2024’s total dividend stood at S$0.024.
CSE Global’s shares offer a trailing dividend yield of 5.7%.
The engineering group saw its order intake for 2024 fall by 19% year on year to S$800.7 million.
CSE Global ended 2024 with an order book of S$672.6 million, down nearly 8% year on year.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
