Dividends have come back in favour as rising interest rates dent the valuations and share prices of growth stocks.
A dividend represents a tangible return on your investment that is unaffected by the rampant volatility of the stock market.
Plus, nothing beats the feeling of receiving a stream of passive income directly into your bank account.
Some stocks are even more attractive by virtue of their quarterly dividend payments.
By receiving these dividends sooner, you have the liberty to can decide what you wish to do with them
The cash can be spent on a nice Christmas dinner with family, saved for a rainy day, or reinvested in other dividend-paying stocks to compound your wealth for retirement.
Here are five Singapore stocks that dish out quarterly dividends that you can consider for your buy watchlist.
DBS Group (SGX: D05)
Singapore’s largest bank certainly did not disappoint when it released its latest fiscal 2023’s third quarter (3Q2022) earnings.
Net interest income (NII) surged by 44% year on year while net profit hit a record high of S$2.2 billion.
The bank paid out a quarterly dividend of S$0.36 for 3Q2022, similar to the previous three quarters but 9.1% higher than 3Q2021’s S$0.32.
The group’s trailing 12-month dividend yield stood at 4.3%.
The lender has room to grow its dividend further as it enjoys tailwinds from higher interest rates that should boost its NII.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The bourse operator pays out a quarterly dividend of S$0.08 per share.
For its most recent fiscal 2022 (FY2022) ending 30 June, SGX reported its highest revenue since its IPO of S$1.1 billion, up 4% year on year.
Net profit inched up 1% year on year to S$451 million.
The total dividend for FY2022 came in at S$0.32, similar to what was paid out a year ago, giving SGX’s shares a trailing dividend yield of 3.5%.
The group is well-positioned to maintain or even increase this dividend moving forward.
For its recent November 2022 market statistics, SGX reported that derivatives traded volume rose 30% year on year to 23.7 million contracts.
Foreign exchange volumes also rose to a new all-time high.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology and engineering group with a portfolio of businesses spanning the aerospace, smart city, and defence sectors.
The group reported a 19% year on year jump in revenue to S$6.5 billion for the first nine months of 2022 (9M2022).
An interim dividend of S$0.04 was paid out, and STE has committed to paying a total of S$0.16 in dividends for FY2022.
The forward dividend yield on its shares comes in at 4.8%.
STE snagged a total of S$4.8 billion in new contracts for 3Q2022, bringing its order book to a new record high of S$25 billion as of 30 September 2022.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology group that operates a platform for the buying and selling of unit trusts, equities, and bonds.
The group maintained its interim dividend of S$0.013 despite reporting a near-73% year on year plunge in net profit for 3Q2022.
For 9M2022, the fintech outfit has paid out a total dividend of S$0.034, unchanged from a year ago.
iFAST’s trailing 12-month dividend came in at S$0.048, giving its shares a trailing dividend yield of 0.8%.
Despite the weaker results, iFAST expects revenue and net profit to scale to new heights in 2023 when the contributions from its new Hong Kong e-pension division kick in.
Should the estimates play out as projected, the group should have room to raise its dividends further.
UMS Holdings Limited (SGX: 558)
UMS provides equipment manufacturing and engineering services to semiconductor original equipment manufacturers.
For 3Q2022, UMS saw revenue climb 48% year on year to S$100.1 million.
Net profit soared 181% year on year to S$42.5 million.
The group declared an interim dividend of S$0.01 for 3Q2022.
UMS also paid out a dividend of S$0.01 each for the first and second quarters of this year.
Along with a final dividend of S$0.02 for FY2021, the trailing 12-month dividend came in at S$0.05, giving the equipment services firm a trailing dividend yield of 4%.
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Disclaimer: Royston Yang owns shares of DBS, Singapore Exchange Limited and iFAST Corporation Limited.
