As the saying goes it comes to dividends, the more the merrier.
The key to enjoying a happy retirement is to build up a portfolio of dividend-paying stocks.
However, the key is to look for companies that are almost assured of paying out dividends over your lifetime.
Such businesses are usually recession-proof, generate significant amounts of cash flow, or have the mandate to pay the bulk of their profits as dividends.
Here are five such Singapore stocks that can pay you for life.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group operates a platform for the buying and selling of a variety of securities such as shares, bonds and derivatives.
SGX has held up well during the pandemic as trading volumes remain healthy.
The bourse operator has also been proactive in expanding its suite of products to cater to investors who need to hedge their investment portfolios.
In June, SGX launched the world’s first ESG REIT derivatives in a partnership with Nikkei of Japan.
And last week, the group added three new forward freight agreements and futures contracts for liquified natural gas vessels.
At the moment, SGX is paying a quarterly dividend of S$0.08 per share.
With its strong free cash flow generation and its status as the sole stock market operator in Singapore, investors have some assurance that its dividend payouts can continue.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with assets under management (AUM) of S$6.8 billion as of 31 March 2021.
Its portfolio consists of 87 properties in Singapore and 28 in the US.
The REIT is sponsored by Mapletree Investments Pte Ltd, a unit of Temasek Holdings.
MIT acquired 14 US data centres in June last year, leading to a 10.2% year on year jump in gross revenue for its fiscal year ended 31 March 2021 (FY2021).
Distribution per unit (DPU) inched up 2.5% year on year to S$0.1255, an admirable feat considering that rental reliefs were doled out to its tenants.
MIT’s units provided a trailing yield of 4.3% at the last traded price of S$2.89.
Two months ago, the REIT deepened its data centre presence with another major acquisition of 29 data centres across 18 states in the US.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT, or PLife REIT, owns a diversified portfolio of 55 properties — three hospitals in Singapore, 51 nursing homes in Japan and strata-titled units of a Specialist clinic in Malaysia.
The REIT’s AUM stood at S$2 billion as of 31 March 2021.
PLife REIT has had a sterling reputation for uninterrupted increases in recurring DPU since its IPO in 2007.
The REIT’s strong track record has continued into the first quarter of 2021 (1Q2021).
Gross revenue inched up 0.4% year on year while DPU rose by 7.4% year on year to S$0.0357.
Annualised DPU stood at S$0.1428, providing the units with a prospective dividend yield of 3% at the last traded share price of S$4.80.
The REIT recently signed a new master lease agreement for its three Singapore hospitals, paving the way for a revamp of the assets and a higher projected future DPU.
OCBC Ltd (SGX: O39)
OCBC is one of Singapore’s three big banks.
The group provides a comprehensive range of banking services to both individuals and corporations.
OCBC has reported weaker net profit for its fiscal year 2020 due to higher allowances. However, the bank still paid out a total annual dividend of S$0.318.
This level of payout was 60% of what was paid in the fiscal year 2019, in line with the central bank’s call for banks to moderate their dividend payments.
1Q2021 saw the bank reporting significantly higher net profit as growth was logged in multiple areas.
With an economic recovery underway, there’s a high chance the bank can at least maintain its current level of dividends.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong operates a chain of 63 supermarkets in Singapore and owns two stores in Kunming, China, with a third on the way.
The group provides a wide array of essential household items and fresh and chilled produce.
With over 1,400 products, Sheng Siong should continue to be one of the top choices for heartlanders who are shopping for daily necessities.
The group paid out a full year 2020 dividend of S$0.065 or around 70% of its net profit after tax.
At the last traded price of S$1.57, Sheng Siong’s shares offer a trailing dividend yield of 4.1%.
If you could only buy one of these dividend stocks in August, which would you pick?
The pandemic survivor, Keppel DC REIT (SGX: AJBU)..
The property mogul, Frasers Logistics & Commercial Trust (SGX: BUOU)…
Or the blue chip darling, DBS (SGX: D05)?
This is the challenge we created for ourselves this month.
We asked the public to choose 3 stocks for us.
And we will be buying one of them.
Now, it might sound crazy to stake our money on the public’s opinion. But we’ve done our homework.
And on 29 of July, you’ll be able to watch our analyses live on a webinar.
We’ll break down each stock’s strengths, weaknesses, and potential to add thousands of dollars in our accounts.
We’ve never done this before, so you’re in for a treat. If you have any interest in dividend stocks, this webinar is for you.
Disclaimer: Royston Yang owns shares of Singapore Exchange Limited.