Everyone loves receiving a dividend that goes straight into your bank account.
That’s the beauty of dividend investing – the creation of a passive stream of income that helps to supplement your earned income.
The good news is that Singapore’s stock market is filled with attractive, dividend-paying stocks.
But what’s more attractive are stocks that dish out a special dividend to deliver that extra spending money that you can use for a holiday or a nice meal.
We lined up four Singapore stocks that are well-positioned to possibly pay out a special dividend when they announced their results next month.
Singapore Post (SGX: S08)
Singapore Post, or SingPost, is a postal and eCommerce logistics provider serving customers in 220 global destinations.
The group has offices in 13 markets around the world and employs more than 4,900 staff.
SingPost reported a robust financial performance for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024.
Revenue rose 20% year on year to S$992.4 million.
Operating profit climbed 62.9% year on year to S$51.2 million while underlying net profit surged by 87.6% year on year to S$25.2 million.
In line with the good results, the group’s interim dividend leapt nearly 89% year on year to S$0.0034.
In December last year, SingPost announced the divestment of its Australia business, Freight Management Holdings Pty Ltd (FMH) for A$775.9 million.
This sale will result in a gain on disposal of S$312.1 million and help to unlock value for shareholders.
The board will consider the payment of a special dividend arising from this sale after accounting for the future funding needs of SingPost.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank by market capitalisation and a ubiquitous name among Singaporeans.
The lender reported a sterling set of earnings for the first nine months of 2024 (9M 2024) as its total income was boosted by the surge in interest rates and a jump in non-interest income.
Higher interest rates lifted DBS’s net interest income by 4.8% year on year to S$10.7 billion for 9M 2024.
Net fee and commission income shot up 27% year on year to S$3.2 billion.
Total income rose 11% year on year to S$16.8 billion while net profit hit a new record of S$8.8 billion for the period.
The third quarter of 2024 (3Q 2024) dividend stood at S$0.54, a 23% year-on-year increase from the S$0.44 paid out in the previous corresponding period.
CEO Piyush Gupta was optimistic that the blue-chip bank can grow its loan book for 2025 and also enjoy high-single-digit year on year increases in non-interest income.
Investors have scaled back expectations of an interest rate cut by the US Federal Reserve as the economy is performing better than expected.
With rates likely to stay higher for longer, investors can expect a strong result and possibly a special dividend from DBS when it reports its 2024 earnings on 10 February.
OUE REIT (SGX: TS0U)
OUE REIT is a retail and hospitality REIT with six assets in Singapore and one in Shanghai.
Its total assets under management stood at S$6.3 billion as of 31 December 2023.
For its 3Q 2024 business update, OUE REIT saw revenue dip 1.3% year on year to S$74.8 million.
Net property income fell by 3.7% year on year to S$60.3 million.
Despite the weaker results, the REIT’s Singapore office portfolio registered a positive rental reversion of 10.8%.
Its hospitality segment also saw revenue per available room grow by 0.3% year on year to S$296.
Last month, the REIT agreed to divest its entire 91.2% stake in Lippo Plaza in Shanghai to an unrelated third party for around S$357.4 million.
The REIT has no plans to expand in China and the proceeds will be redeployed for more strategic uses.
The net proceeds are approximately S$318.2 million and could be used for accretive acquisitions, the payment of debt, asset enhancement initiatives, or to initiate a capital distribution (i.e. special distribution) to unitholders.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates a platform for the buying and selling of unit trusts, equities, and bonds.
The group reported a stellar set of earnings for 9M 2024.
Net revenue soared 75.5% year on year to S$183.5 million.
Operating profit nearly tripled year on year, going from S$20.3 million to S$60.1 million.
Net profit more than tripled year on year to S$47.4 million.
The fintech group’s assets under administration also hit a new record high of S$23.62 billion, up 23.6% year on year.
An interim dividend of S$0.015 was declared for 3Q 2024, up from S$0.013 a year ago.
iFAST’s Hong Kong ePension division is projected to become an important growth driver for 2025 with its overall wealth management platform expected to show healthy progress.
In addition, the group’s digital bank, iFAST Global Bank, is also set to become an important growth driver this year.
The fintech is slated to report its 2024 earnings on 12 February that could see it declare a special dividend in light of the strong results.
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Disclosure: Royston Yang owns shares of DBS Group and iFAST Corporation Limited.
