There are many different reasons why people invest.
Some may put their money in growth stocks that can deliver capital gains over time and lift the value of their investment portfolio.
Others may prefer the comfort and security of blue-chip stocks with stable earnings and cash flows.
Yet others may focus on dividend stocks that pay out a stream of passive income that can supplement your lifestyle during retirement.
The good news for dividend-seeking investors is that the Singapore market has a good spread of stocks that pay out regular, consistent dividends.
If you have S$50,000 to spare, here are five dividend-paying companies that you can allocate it to.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is an engineering conglomerate serving customers in more than 100 countries in the aerospace, smart city, defence, and public security sectors.
The group has remained resilient through the pandemic and has also paid out a steady dividend of S$0.15 per year in the last two financial years (i.e. 2019 and 2020).
For the first half of 2021 (1H2021), STE saw revenue inch up 2% year on year while net profit jumped by 15% year on year.
The group kept its interim dividend constant at S$0.05 per share, with a trailing 12-month dividend at S$0.15, translating to a trailing dividend yield of 3.9%.
At the same time, STE’s boasted a robust order book for its fiscal 2021 third quarter (3Q2021) at S$18.2 billion, up from the S$15.4 billion as of end-2021.
The engineering group is slated to release its fiscal 2021 (FY2021) earnings on the morning of 25 February.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates a platform for the buying and selling of unit trusts, equities, and bonds.
The group recently reported a sparkling set of FY2021 earnings as its assets under administration (AUA) hit a record high of S$19 billion as of 31 December 2021.
The fintech company has been a consistent payer of quarterly dividends, and its annual dividend has increased from S$0.0301 in FY2017 to S$0.048 in FY2021.
Its shares offer a trailing dividend yield of 0.8%.
Looking ahead, the group plans to execute its five-year plan to pursue more licences in various jurisdictions and to build a global business model.
Last month, iFAST purchased an 85% stake in BFC Bank, a UK digital bank, to help to grow its business further.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator recently announced its fiscal 2022 first half (1H2022) earnings where its net profit dipped slightly year on year due to increased expenses.
SGX announced a final dividend of S$0.08, bringing its trailing 12-month dividend to S$0.32.
At the current stock price, its shares offer a trailing dividend yield of 3.3%.
The group is working to further expand its market reach through collaborations with other exchanges and is also exploring cross-selling opportunities through its new corporate structure.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD)
Micro-Mechanics (Holdings) Ltd, or MMH, designs and manufactures tools and parts used in the wafer fabrication and assembly processes of the semiconductor industry.
The group reported a decent set of earnings for 1H2022, with revenue up 10.7% year on year to S$40.8 million and net profit inching up 4.6% year on year to S$9.5 million.
Source: Micro-Mechanics 1H2022 Presentation
MMH declared an interim dividend of S$0.06 per share, unchanged from a year ago.
Trailing 12-month dividend stood at S$0.14, translating to a trailing yield of 4.3% for its shares.
Moving forward, the group expects its business to continue to do well as the World Semiconductor Trade Statistics (WSTS) has forecast an 8.8% year on year growth in the global semiconductor market.
Venture Corporation Limited (SGX: V03)
Venture is a global provider of technology products, services, and solutions.
The group manages a portfolio of more than 5,000 products and employs over 12,000 people around the world.
Venture reported a healthy set of financials during its recent 3Q2021 business update, with revenue for the first nine months of 2021 inching up 0.8% year on year to S$2.2 billion.
Net profit rose 3.2% year on year to S$217.4 million over the same period.
The group paid out an interim dividend of S$0.25 per share for 1H2021 and a final dividend of S$0.50 last year, bringing the trailing 12-month dividend to S$0.75.
Based on the dividend payout, its shares sport a trailing yield of around 4%.
Venture will be releasing its FY2021 earnings on the evening of 25 February.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited, Singapore Exchange Limited and Micro-Mechanics (Holdings) Ltd.
