Retirement may seem like a far-off concept for those who have just started working.
However, it’s essential to start building your wealth as early as possible to allow compounding to work its magic.
To do so, you need to invest your money in a mix of solid stocks that can deliver capital growth and a stream of dividends.
This “best-of-both-worlds” scenario may not be easy to find, but we have filtered out four Singapore stocks that we believe meet the criteria.
iFAST Corporation (SGX: AIY)
iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of unit trusts, equities, and bonds.
The group reported healthy growth for both its profits and dividends for its latest first quarter of 2025 (1Q 2025) results.
Net revenue rose 16.5% year on year to S$67.7 million, contributed by higher revenue recognition from its Hong Kong ePension project, coupled with growth in its wealth management platform.
Operating profit climbed 29% year on year to S$23.8 million while net profit leapt 31.2% year on year to S$19 million.
The fintech saw its assets under administration (AUA) increase 22% year on year to a record high of S$25.68 billion as of 31 March 2025.
This improvement was achieved because of healthy net inflows of S$938 million for the quarter.
An interim dividend of S$0.016 was paid out, higher than the previous year’s S$0.013.
There could be more to come from iFAST.
Its digital bank’s digital personal banking (DPB) division launched new services to deepen engagement with its UK customers, which should encourage further deposit growth.
2025 is expected to see further progress for iFAST’s various divisions, with AUA expected to continue to increase.
The ePension division should also see healthy growth as more trustees are onboarded.
Management also expects to achieve a full year of profitability for its digital bank this year.
DBS Group (SGX: D05)
DBS Group needs no introduction, being a well-known name among Singaporeans as the largest bank in Singapore by market capitalisation.
The lender offers a comprehensive range of banking, insurance, and investment services for individuals and corporations.
The bank reported a commendable set of results for 1Q 2025.
Commercial book net interest income inched up 2% year on year to S$3.7 billion, while fee and commission income shot up 22% year on year to S$1.3 billion.
DBS’s total income rose 6% year on year to S$5.9 billion.
However, DBS’s net profit dipped slightly by 2% year on year to S$2.9 billion, largely because of a 15% global minimum tax rate.
Stripping this out, profit before tax would have increased by 1% year on year.
The lender declared a quarterly dividend of S$0.75, comprising a core dividend of S$0.60 and a capital return dividend of S$0.15 to manage its excess capital.
This dividend is nearly 39% higher than the S$0.54 paid out in the previous corresponding quarter.
CEO Tan Su Shan warned of global challenges such as trade disruptions and a potential global growth slowdown triggered by Trump’s raft of tariffs.
However, DBS is confident of finding opportunities amid trade shifts as there will be new growth corridors and sectors opening up.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate with four business units – healthcare, leisure, property, and investments.
The group owns the famous Tiger Balm brand, which sells ointments and salves throughout the world.
Haw Par has seen its revenue and profit recover after the pandemic, and the group has also steadily increased its dividend over the years.
For its latest results, the group saw revenue rise 5.5% year on year to S$244.8 million for 2024.
Net profit climbed 5.4% year on year to S$228.3 million.
Haw Par also generated a positive free cash flow of S$50.3 million for 2024, and saw higher dividend income received of S$149.1 million compared with S$136.2 million a year ago.
The conglomerate has steadily increased its annual dividend over the years, starting with S$0.20 per share from 2010 to 2017 and then increasing this to S$0.30 per share from 2018.
In 2023, the annual dividend was further increased to S$0.40, and management also paid out a special dividend of S$1 per share last year.
Sheng Siong (SGX: OV8)
Sheng Siong is one of the largest supermarket chains in Singapore, with 77 outlets across the island.
These outlets are located in the heartland areas of Singapore and offer a wide variety of fresh and chilled produce, general merchandise, and daily necessities.
The retailer continued to demonstrate steady growth and has also increased its dividend over the years.
For 2024, Sheng Siong paid out a total dividend of S$0.064, slightly above the S$0.0625 that was paid for 2023.
The strong performance has continued into 1Q 2025, with revenue rising 7.1% year on year to S$403 million.
Gross margin saw a further improvement from 29.4% to 30.3%, continuing a trend of gross margin increases over the years.
The supermarket operator’s net profit stood at S$38.5 million, 6.1% higher year on year.
The group opened two new stores in the first two months of 2025 and also secured six additional locations, which will progressively open this year.
Sheng Siong is also awaiting four tender results.
With the continued growth in its store count, the retailer has the potential to continue growing its profits and dividends in the years to come.
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Disclosure: Royston Yang owns shares of iFAST Corporation and DBS Group.
