Investing S$10,000 might not make you a millionaire overnight, but in a market like Singapore’s, it is the perfect amount to build a high-quality income engine.
You do not need a massive windfall to start.
What you truly need is a disciplined approach and a focus on businesses that generate real, sustainable cash.
These are the three dividend stocks I would buy if I were looking to deploy that capital today.
ParkwayLife REIT (SGX: C2PU) – The Defensive Growth Aristocrat
ParkwayLife REIT, or PLife REIT, remains one of the most reliable pillars for any income-focused portfolio.
With a portfolio of 74 properties valued at S$2.57 billion across Singapore, Japan, and France, the REIT delivered a solid performance for the full year of 2025 (FY2025).
Gross revenue climbed 7.6% year on year (YoY) to S$156.3 million, while net property income (NPI) improved by 8.0% to S$147.5 million.
Distribution per unit (DPU) grew 2.5% YoY to S$0.1529; while tempered by a larger unit base, growth was fueled by savvy Japanese and French acquisitions.
At the current price of S$4.08, PLife REIT offers a yield of 3.75%
The real excitement for investors, however, lies just over the horizon in 2026.
Under the renewed master lease agreement for its three Singapore hospitals, the minimum guaranteed rent is set to skyrocket by 24.3%, moving from S$79.7 million (FY2025) to S$99.1 million in FY2026.
This provides a high degree of certainty for future DPU growth, extending a track record of uninterrupted distribution increases that dates back to its 2007 IPO.
For those seeking a blend of defensive healthcare stability and visible growth, this REIT is a standout candidate.
Raffles Medical Group (SGX: BSL) – The Cash-Rich Healthcare Giant
Raffles Medical Group continues to prove that it is a lean, mean, cash-generating machine.
In the first half of 2025 (1H2025), the integrated healthcare provider reported a 3.5% YoY rise in revenue to S$378.4 million, while profit attributable to owners grew 4.8% to S$32.1 million.
The most eye-catching metric was its free cash flow, which surged by a staggering 139.4% YoY to S$52.0 million.
This was fuelled by strong operating cash generation and a 75.6% reduction in capital expenditure compared to 1H2024, allowing the group to maintain a fortress-like balance sheet with S$334.2 million in cash and total borrowings of S$51.2 million.
With a current share price of S$1.00, the group delivers a dividend yield of 2.5% based on its S$0.025 annual payout.
Management’s focus on high-margin specialty services and resource optimization suggests that the group is well-positioned to remain profitable through FY2025.
While it pays an annual rather than interim dividend, its massive net cash position provides a significant safety net for long-term investors.
Keppel DC REIT (SGX: AJBU) – The High-Voltage AI Growth Engine
If you want your portfolio to ride the wave of the AI revolution, Keppel DC REIT is the infrastructure play to watch.
For FY2025, the REIT reported an impressive 42.2% YoY jump in gross revenue to S$441.4 million, while NPI rose 47.2% to S$383.3 million.
This translated into a 9.8% increase in DPU to S$0.10381, a refreshing growth rate in the REIT sector.
This performance was largely driven by strategic acquisitions in Tokyo and Singapore, alongside the successful renewal of contracts at significantly higher rates.
Trading at S$2.27, this data center specialist provides a higher yield of 4.57%.
The REIT achieved a strong 45% positive rental reversion on contracts renewed in FY2025, underscoring the massive supply-demand imbalance in the data centre market, while 95.8% occupancy and a 6.7-year weighted average lease expiry ensure a rare mix of growth and stability.
As AI fuels structural demand, Keppel DC REIT remains a premier choice for those seeking both high-tech growth and consistent dividends.
Estimating Your Annual Income
Based on current yields and assuming an allocation of S$4,000 to ParkwayLife REIT, S$4,000 to Keppel DC REIT, and S$2,000 to Raffles Medical Group, we can estimate the potential annual dividends.
| Stock | Allocation | 2025 Dividend / DPU | Estimated Annual Income |
| ParkwayLife REIT | S$4,000 (40%) | S$0.1529 | S$150 |
| Keppel DC REIT | S$4,000 (40%) | S$0.10381 | S$183 |
| Raffles Medical | S$2,000 (20%) | S$0.025 | S$50 |
| Total | S$10,000 | S$383 |
This portfolio offers a combined yield of roughly 4%.
While a S$383 annual payout might seem modest at first, it represents a completely passive cash flow that is expected to grow as these companies raise their payouts over time.
The Power of Compounding
The true secret to wealth in the Singapore market isn’t just receiving dividends; it is what you do with them.
Compounding is often called the “eighth wonder of the world,” and for good reason.
When you take that S$383 in annual dividends and reinvest it by buying more shares of these same companies, you are increasing your “ownership” without spending another cent of your own salary.
It is the financial equivalent of a snowball rolling down a hill – it starts small, but as it gathers more “snow” (dividends), it becomes an unstoppable force.
Get Smart: Build Your Future Today
Building a portfolio with this trio gives you a front-row seat to three of the most powerful structural trends in the world: an aging population, the recovery of premium healthcare services, and the digital explosion fueled by AI.
By starting with S$10,000, you are putting your capital to work in businesses that have the pricing power to fight inflation and the operational excellence to grow their distributions.
You don’t need to find the next “ten-bagger” overnight.
Instead, focus on high-quality businesses with strong balance sheets and visible catalysts.
Reinvest your payouts, stay patient, and let time do the heavy lifting for you.
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Disclosure: Calvina Lee does not own any of the stocks mentioned.
