Singaporeans are a fortunate bunch when it comes to retirement and tax planning.
The Central Provident Fund (CPF) scheme has been tailored and tweaked over the years to help better prepare you for retirement.
And for those who are looking to reduce their tax liabilities, the government has introduced the Supplementary Retirement Scheme (SRS) account.
Contributions to this account will help to defray your tax expense.
Your CPF Ordinary Account currently earns a near risk-free interest rate of 2.5% per annum.
Yet, the rate offered is barely sufficient to beat inflation.
Meanwhile, SRS funds provide an even more measly return of just 0.05% per annum.
Fortunately, you have the option of investing the money in these two accounts to increase your returns and boost your retirement funds.
Here are five stocks to consider for your CPF or SRS investment accounts.
Mapletree Logistics Trust (SGX: M44U)
REITs are a great investment choice if you’re looking to boost your income flow.
Mapletree Logistics Trust, or MLT, owns a diversified portfolio of logistics properties with assets under management (AUM) of S$10.8 billion as of 30 September 2021.
Its portfolio comprises 163 properties spread out over nine countries such as Singapore, China, Japan, and Australia.
MLT has paid out increasing distribution per unit (DPU) since the fiscal year 2016 and is also managed by a wholly-owned subsidiary of Mapletree Investments Pte Ltd.
For its fiscal 2022 first half (1H2022), MLT reported a 24.4% year on year jump in gross revenue while net property income (NPI) rose by 21.4% year on year.
DPU increased by 5.7% year on year to S$0.04334.
At a unit price of S$2.00, MLT offers an annualised forward dividend yield of around 4.3%.
Frasers Centrepoint Trust (SGX: J69U)
If one REIT is not enough, you can check out Frasers Centrepoint Trust or FCT.
The REIT’s sponsor is property giant Frasers Property Limited (SGX: TQ5) and it owns a portfolio of nine retail suburban malls with around 2.2 million square feet of net lettable area.
The AUM of its portfolio stood at around S$6.1 billion as of 30 September 2021.
Some of the malls within its portfolio include Causeway Point, White Sands, and Hougang Mall.
The REIT recently reported a stellar set of numbers for its fiscal year 2021 (FY2021).
Gross revenue more than doubled year on year to S$341.5 million on the back of its acquisition of five AsiaRetail Fund malls.
DPU jumped by 33.7% year on year to S$0.12085. Trailing 12-month distribution yields stands at 5% at the last-traded unit price of S$2.42.
Suburban malls cater to heartlanders who shop there for essentials and food, thereby lending resilience to FCT’s portfolio.
OCBC Ltd (SGX: O39)
Beyond REITs, the local bourse is also home to dependable, blue-chip businesses.
These companies not only offer stability but also provide for some measure of growth.
OCBC Ltd is one of Singapore’s three big banks and has demonstrated its resilience in the last 18 months.
For its fiscal 2021 first half, the lender reported a 7% year on year increase in total income while net profit surged by 86% year on year to S$2.7 billion.
In line with the good results and the Monetary Authority of Singapore’s relaxation of restrictions on dividend payments, OCBC has restored its 2019 interim dividend of S$0.25.
Singapore Exchange Limited (SGX: S68)
Speaking of blue chips, Singapore Exchange Limited, or SGX, is Singapore’s sole exchange operator.
The bourse operator enjoys a natural monopoly and has reported a decent set of earnings for FY2021 ended 30 June 2021.
Revenue was flat year on year while net profit dipped by 6% year on year due to increased expenses from two acquisitions.
Stripping out these acquisitions, underlying expenses would have declined by 4% year on year.
SGX declared a quarterly dividend of S$0.08 per share, bringing its FY2021 dividend to S$0.32.
SGX has continued with business development efforts to bolster its suite of products.
Last month, it partnered with UOB Asset Management, a division of United Overseas Bank Ltd (SGX: U11), to jointly launch the iEdge-UOB APAC Green REIT Index that tracks REITs in Asia-Pacific that have high dividend yields and ESG attributes.
Venture Corporation Limited (SGX: V03)
Rounding off the list of blue-chip names is contract manufacturer Venture Corporation Limited.
Venture manages a portfolio of more than 5,000 products and solutions and employs over 12,000 people worldwide.
The group reported a respectable set of earnings for 1H2021.
Revenue increased by 4.9% year on year to S$1.4 billion while net profit improved by 7.6% year on year to S$140.4 million.
Venture also declared an interim dividend of S$0.25, unchanged from a year ago.
The outlook appears bright with Venture seeing increased demand for innovative solutions in the life science and genomics sector.
The group will also support the launch of new platform products in the lifestyle consumer electronics sector in the second half of this year.
Accelerate your retirement plans with these 5 SGX stocks. Their dividends are climbing, and are well-positioned to weather through storms in the future. We think at least one of them deserves a spot in your portfolio. To find out their names, grab a copy of your FREE special report: “Dividend Stocks That Can Pay You For Life” today. Click here to download now.
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Disclaimer: Royston Yang owns shares of Singapore Exchange Limited.
