Singapore’s stock market offers banks, which are among the best in the world, and a large and tightly regulated REIT market. These are perfect for local investors to invest within their circle of competence.
Yet, portfolios overconcentrated in finance and property are exposed to sector-specific risks.
Here are five global dividend stocks that might beef up diversification in a portfolio.
Johnson & Johnson (NYSE: JNJ) – Pursuing High-Margin Growth
After spinning off its consumer businesses to Kenvue in 2023, Johnson & Johnson, or J&J, now derives revenue from its Medicine and MedTech segments, which provide drugs and medical devices, respectively.
J&J’s worldwide revenue in the quarter ended 28 September 2025 (Q3 2025) increased 6.8% year-on-year (YoY) to US$24 billion, while adjusted earnings grew 15.7% to US$6.8 billion due to broad-based momentum across its businesses.
Year-to-date (YTD), J&J has paid US$9.3 billion in dividends and repurchased US$4.0 billion in shares, demonstrating its commitment to shareholder returns.
The Orthopaedics unit, DePuy Synthes, is set to be spun off over the next 18-24 months as J&J focuses on other higher-margin segments.
J&J experienced double-digit growth in 12 drug brands in Q3 2025, with TREMFYA being a standout with a 40% growth rate. The company also received FDA approval during the quarter for INLEXZO for treating bladder cancer.
The separation of DePuy Synthes, and the strong performance from the drug portfolio, showcase J&J’s leadership in delivering transformative products in its key focus areas while shedding lower margin businesses.
PepsiCo (NASDAQ: PEP) — From Soda Icon to Global Staple
PepsiCo is most well-known for its iconic Pepsi soft drink but it’s actually a diversified business with many other food and beverage brands such as Quaker and Mountain Dew.
Despite its revenue in the quarter ended 6 September 2025 (Q3 2025) increasing 3% YoY to US$23.9 billion, increasing operating costs, higher commodity prices, and M&A related charges resulted in operating earnings decreasing 8% to US$3.57 billion.
Still, PepsiCo had increased its annualised dividend by 5% to US$5.69 per share earlier this year, maintaining its status as a dividend aristocrat (a dividend aristocrat is a company that has increased its annual dividend for at least 25 consecutive years). The company has also kept its Q3 2025 payout ratio at a sustainable75%.
Additionally, US$1.0 billion in share repurchases have been planned for 2025. Together with US$7.6 billion in dividends for the year, PepsiCo’s total shareholder return for the year is expected to be US$8.6 billion.
PepsiCo is tackling costs and driving organic growth through international expansions and improvements in quality through its pivot to healthier food options, such as higher protein, fibre and whole grains.
The combination of global household brands, rising dividends, and share repurchases means PepsiCo is rewarding shareholders with both capital appreciation and dividend opportunities.
NextEra Energy (NYSE: NEE) — Backlog Strength, Google Growth
NextEra is one of the largest electric utilities in the US and operates two core businesses, namely, Florida Power & Light (FPL) and NextEra Energy Resources (NEER). The former provides power in Florida mostly through natural gas, solar, and natural gas sources. The latter is a leader in the US and globally in clean energy infrastructure.
Operating revenue in the quarter ended 30 September 2025 (Q3 2025) rose 5.3% to US$8.0 billion, while adjusted earnings per share grew 9.7% YoY to US$1.13 per share.
NextEra’s dividends for first nine months of 2025 climbed 10.2% YoY to US$3.5 billion, and it maintained a healthy payout ratio of 51.5%
Dividends per share are expected to rise at roughly 10% annually through at least 2026.
Some of the tailwinds powering NextEra’s future growth include its 29.6 gigawatts of renewables and storage backlog and its collaboration with Google on the 615-megawatt Duane Arnold nuclear plant, which is expected to return to operations by early 2029.
Microsoft (NASDAQ: MSFT) — Copilot Everywhere, OpenAI Runway
Microsoft is at the forefront of digital technology, AI, and cloud services, with solutions that empower corporate businesses.
Revenue in the quarter ended 30 September 2025 (Q1 FY2026) grew 18.4% YoY to US$77.7 billion, driving net income up 12% to US$27.7 billion. The net income growth happened despite a sharp jump in other expenses from just US$283 million a year ago to US$3.6 billion mostly because of net losses related to Microsoft’s investment in OpenAI.
But operating cash flow surged 31.8% to US$45.1 billion, with free cash flow growing 33% to US$25.7 billion.
Microsoft’s dividend has increased by 9.6% YoY to US$0.91 per share and the company has a very favourable payout ratio of 24.4%
The company repurchased US$4 billion worth of shares in Q1 FY2026, up 42.9% YoY. It has a whopping US$53.4 billion remaining under its share repurchase programme.
Microsoft is investing substantially in its AI capabilities and will increase its data centre footprint by 80% in FY2026 before doubling it over the next two years. It is also adopting Copilot across all its existing products. Microsoft’s major AI-partner, OpenAI, recently signed up for additional Azure services that are worth US$250 billion.
Nestle (SWX: NESN) — Six Big Bets
Nestle’s revenue mix is global. Although the largest share is coming from the North and South American continents, Europe and the rest of the world also contribute significantly.
Nestle has a huge portfolio of consumer brands in food and beverages and some of them that might be familiar for a Singapore audience are Nespresso, Milo, and San Pellegrino.
In the first nine months of 2025 (9M 2025), Nestle’s sales dropped by 1.9% YoY to CHF 65.9 billion mostly because of the strengthening of the Swiss Franc. Without the FX headwind, Nestle’s organic sales growth was 3.3%.
Nestle has so far not announced its dividend for 2025, but its dividend increased by 1.7% in 2024 to CHF3.05 per share. The company is “committed to the long-held practice of increasing the dividend in Swiss francs every year.”
Supporting Nestle’s dividend is its free cash flow. The company expects to generate free cash flow (FCF) of at least CHF 8 billion for 2025. The company also expects to produce free cash flow growth in 2026 onwards that is above its dividend growth to sustain payouts over the long term.
Nestle’s growth is underpinned by its “six big bets”. In particular, management views “Cold Coffee” products as an “incredible growth opportunity” and expects “Maggi Air Fryer seasonings” to benefit from rising penetration of air fryers globally.
Why Global Dividend Stocks Strengthen a Singapore Portfolio
By investing globally, investors can gain exposure to healthcare (J&J), consumer staples (PepsiCo and Nestle), and utilities (NextEra).
Microsoft, being tech, isn’t traditionally defensive. However, its financial strength, wide moat, dividend growth, and share buybacks offer defensive characteristics.
Get Smart: Anchor Locally, Diversify Globally
Don’t forsake Singapore banks and REITs – enhance them.
Selectively blending global dividend stocks adds resilience, enhancing long-term compounding.
With rate cuts anticipated to ease margin pressures, opportunities are found in high-quality global dividend stocks.
Get smart and lock in the yields before rates fall further.
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Disclosure: Larry L. owns shares of Microsoft.
