As Singapore welcomes the Year of the Horse, dividend investors are looking for stocks with the stamina to go the distance.
In a season defined by vitality and forward momentum, the Singapore Exchange (SGX: S68) offers several opportunities that are currently hitting their stride.
This week, three companies are approaching key milestones that could determine their pace for 2026.
From a general insurer undergoing a strategic shift to a REIT benefiting from a change in the economic climate, these picks represent different ways to harness the energy of the new lunar year for your portfolio.
United Overseas Insurance (SGX: U13): Can a transformation reverse the dividend cut?
United Overseas Insurance (UOI) finds itself at a crossroads where robust top-line growth meets bottom-line pressure.
The insurer saw its revenue climb 12.2% year on year (YoY) to over S$57 million in the first half of 2025 (1H2025), yet this success was shadowed by a 39.6% drop in net insurance service results.
This decline stemmed primarily from higher gross incurred claims and increased actuarial reserves, which pushed the combined ratio up to 91% from 76% just two years prior.
The impact on shareholders was tangible as the interim dividend was adjusted downward from S$0.085 to S$0.07.
With a current share price of S$7.75 and a trailing yield of 3.0%, the stock’s future hinges on its ongoing operational refresh.
Management is currently restructuring the board to pivot toward broader ASEAN markets and improve claims management.
While a group of minority investors continues to advocate for the distribution of UOI’s 4.3 million Haw Par (SGX: H02) shares, the company has prioritized capital preservation.
For investors, the focus remains on whether this new leadership can stabilize the combined ratio and restore the payout to its former strength.
United Hampshire US REIT (SGX: ODBU): Lower rates fuel a DPU recovery
United Hampshire US REIT (UHREIT) offers a compelling example of how macroeconomic shifts can outweigh surface-level revenue dips.
While gross revenue fell 1.6% to US$53.8 million for the nine months ended September 2025 (9M2025) due to property divestments, the underlying distributable income surged by 15.5% in the third quarter alone.
This disconnect is explained by the REIT’s sensitivity to interest rates; a significant reduction in the Secured Overnight Financing Rate (SOFR) since late 2024 has notably lowered borrowing costs.
Consequently, the distribution per unit (DPU) for the 1H2025 rose 4% YoY to US$0.0209.
At a unit price of US$0.55, the annualised DPU of US$0.0418 provides a healthy 7.6% yield.
The REIT’s operational health remains solid with a grocery property occupancy rate of 97.2% and a successful track record of portfolio recycling.
The recent acquisition of Dover Marketplace in Pennsylvania is expected to provide a further 2% DPU uplift.
For income seekers, the primary narrative is how effectively the REIT can continue to leverage falling finance costs and high tenant retention to maintain its generous payout despite a slightly smaller asset base.
VICOM (SGX: WJP): Investing today for bigger dividends tomorrow
VICOM is currently prioritizing long-term infrastructure over immediate payouts, a move that requires patience from its shareholder base.
The company reported a massive 45% jump in net profit to S$9.9 million for the third quarter of 2025 (3Q2025), driven by the mandatory ERP 2.0 unit installations.
Despite this windfall, the company did not declare a dividend for the quarter as it funneled cash into its new Jalan Papan integrated testing centre.
Capital expenditure reached S$12.3 million for the quarter, reflecting the significant progress of this S$60 million facility.
The company maintains a fortress-like balance sheet with S$42.0 million in cash and zero debt, providing a safety net during this heavy investment phase.
The Jalan Papan facility is expected to be fully operational by the first half of 2026, which marks the likely end of this high-spending cycle.
Once capital requirements normalize, the cash generated from its dominant market position should become available for higher distributions.
VICOM currently trades at S$1.68 with a trailing yield of 3.6%, making it a stock for those looking toward a step-change in dividend capacity.
Get Smart: Follow the cash, not just the yield
These three stocks illustrate a crucial principle for dividend investors: headline yields only tell part of the story.
A high yield can be a gift or a warning, depending on the underlying cash flow.
UOI’s transformation could restore its payout, UHREIT’s generous yield is benefiting from a favorable rate environment, and VICOM’s modest current return is likely a prelude to future growth.
Smart investing means looking beyond the current check to understand the operational drivers.
This season, watch the cash flows and capital projects, as they are the true harbingers of sustainability.
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Disclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and owns shares of UOI and VICOM.
