The Smart Investor
    Facebook Instagram
    Monday, October 2
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Blue Chips»5 Stocks That are Perfect for Your CPF and SRS Investment Accounts
    Blue Chips

    5 Stocks That are Perfect for Your CPF and SRS Investment Accounts

    Looking for suitable investments for your CPF or SRS investment account? Here are five stocks that may just fit the bill.
    Royston YangBy Royston YangNovember 3, 2021Updated:April 4, 20225 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    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.

    Follow us on Facebook and Telegram for the latest investing news and analyses!

    Disclaimer: Royston Yang owns shares of Singapore Exchange Limited.

    Yahoo
    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    Forklift in Warehouse

    3 Singapore REITs Conducting Asset Enhancements to Grow Their DPU

    October 2, 2023
    (TSI) inflation

    Get Smart: A Simple Way To Beat Inflation

    October 1, 2023

    Top Stock Market Highlights of the Week: Singapore’s Inflation, Alibaba’s Logistics IPO, City Developments Limited and Grab Holdings

    September 30, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.