Imagine waking up each month to money in your bank account—not from a side hustle, not from rent, but simply from owning the right dividend stocks.
That steady trickle of income? It’s not a dream. it’s the power of monthly income investing.
Why Dividend Stocks Win for Long-Term Investors
Dividends aren’t just “nice to have.”
They’re a tangible sign that a company puts shareholders first.
Once a company starts paying them, cutting dividends is a move management avoids unless absolutely necessary.
But couldn’t companies do share buybacks instead?
Isn’t that another way for management to return capital to shareholders?
Yes, they can but buybacks rely heavily on timing.
Dividends, on the other hand, put cash directly in your pocket.
You decide whether to reinvest, spend, or save it.
The Problem with Buybacks
Even Warren Buffett has cautioned against buybacks done for the wrong reasons, such as artificially propping up a share price.
Furthermore, a buyback only makes sense when shares are undervalued and the company has no better use for the cash.
With buybacks, you’re trusting management to deploy your capital wisely.
With dividends, you decide what to do with your money.
3 Dividend Stock Examples That Deliver
Singapore has no shortage of companies with a consistent record of rewarding shareholders.
Take DBS Group Holdings (SGX: D05), our country’s largest bank with a market cap of about S$144 billion.
DBS generated over S$22 billion in revenue last year, and has operations across Asia, including South East Asia, and Greater China.
At S$50.81 per share, investors enjoy a healthy dividend yield of 5.2% based on a trailing dividend per share (DPS) of S$2.64.
What’s more, DPS growth averaged over 22% in the last three years, according to Fiscal.ai.
With quarterly payouts, DBS provides a steady rhythm of income for shareholders.
Singapore Telecommunications or Singtel (SGX: Z74) offers another option.
With a market cap close to S$70 billion and trailing revenue of around S$14.1 billion, the telco offers a dividend yield of 4.1%.
Over the past five years, DPS has grown 6.8% per year, supported by a diversified regional footprint spanning Singapore, Australia, and beyond.
While its revenue has shrunk slightly over the same period, Singtel’s scale, cash generation, and regular semi-annual payouts make it a candidate as an income stock.
Elsewhere, ST Engineering (SGX: S63), with a market cap of around S$26 billion, stands out for its diversified business model spanning aerospace, defence, and smart city solutions.
The company posted S$11.3 billion in revenue last year, with an ROE of close to 22%; the highest among the three.
ST Engineering’s dividend yield of 2.2%.
DPS has grown steadily at 4.2% annually over the past three years.
While its yield is lower than DBS and Singtel, its resilience through economic cycles makes it a strong stabiliser in an income portfolio.
By combining companies with different payout schedules, investors can smooth out lumpy income streams and potentially receive dividends in multiple months of the year.
This sets the foundation for monthly dividend income.
Get Smart: Taking Control of Your Wealth
If you haven’t started investing, stop waiting for “the perfect time”.
Begin building your dividend portfolio now.
Mix quality Singapore dividend stocks, stagger payout schedules, and watch as those dividends start arriving month after month.
One day, you could be the one smiling each month as your portfolio quietly works for you.
The world’s gotten unpredictable, but some Singapore companies have quietly kept thriving. You’ve probably seen them in your daily life. And yes, they’ve kept paying dividends through it all. Meet 5 resilient stocks built to navigate global storms. Get the free report here and see how they’ve done it.
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Disclosure: Joanna Sng owns shares of DBS and ST Engineering.
