Nothing is more satisfying to an investor than seeing dividends flowing into his bank account.
After all, this flow of passive income represents a real return on your investment that can be spent and utilised as you choose.
Fortunately, there are plenty of stocks in the Singapore stock market that pay out dependable dividends.
As an investor, you need to watch for businesses with a strong business moat and a healthy track record of profitability.
Here are five stocks you can consider adding to your watchlist that pays out a consistent dividend.
UMS Holdings Ltd (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers (OEM) of semiconductors and related products.
The group reported a stellar set of financial numbers for its fiscal 2021 (FY2021) earnings.
Revenue surged by 65% year on year to S$271.2 million while net profit increased by 46% year on year to S$53.1 million.
The strong performance was due to the sustained demand for microchips and the increase in capital expenditures for semiconductor fabs worldwide.
Operating cash flow hit a record high of S$66.1 million, and UMS declared a final dividend of S$0.02, twice what was paid out in the prior year.
For FY2021, a total of S$0.05 in dividends was declared; however, UMS also announced a bonus issue of 1-for-4 shares in August last year.
Taking this event into account, the total dividend is S$0.0575, giving its shares a trailing dividend yield of 5%.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
For its fiscal 2022’s first half (1H2022) ended 31 December 2021, revenue inched up 0.2% year on year to S$521.6 million.
Higher trading volume in commodities and currencies was offset by lower equities trading volume and a lower average clearing fee.
Operating profit declined by 4.8% year on year due to higher expenses.
Net profit fell by 8.8% year on year to S$218.7 million.
The interim quarterly dividend remained constant at S$0.08, and annualised dividend for FY2022 stood at S$0.32, giving SGX’s shares a forward dividend yield of 3.4%.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land, or HKL, is a property investment, management and development group that owns and manages more than 850,000 square metres of prime office and luxury retail properties in cities such as Hong Kong, Singapore, Beijing, and Jakarta.
For FY2021, the group reported a 13.9% rise in revenue from US$2.09 billion to US$2.38 billion.
The rise was due to higher rental and service income as well as higher revenue recognised from the sale of properties.
Underlying net profit stayed flat at US$966 million, and HKL declared a total dividend of US$0.22 for FY2021, unchanged from FY2020.
The trailing dividend yield stood at 4.7% for shares of the property giant.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a technology, engineering and defence group that serves customers in the aerospace, smart city, and public security segments.
The engineering giant reported a respectable set of earnings for FY2021, with revenue rising 7.5% year on year to S$7.7 billion.
Operating profit climbed 13.3% year on year to S$645.9 million while net profit rose 9.3% year on year to S$570.5 million.
A final dividend of S$0.10 was declared, bringing the FY2021 dividend to S$0.15, unchanged from a year ago.
STE’s shares offer a trailing dividend yield of 3.6%.
Its order book stood at S$19.3 billion as of 31 December 2021, the highest in three years.
Management has also approved the payment of quarterly dividends from FY2022 onwards and will raise the total dividend per share to S$0.16 for this year.
VICOM Limited (SGX: WJP)
VICOM is a provider of inspection and technical testing services.
The group offers a comprehensive range of such services for vehicles in the fields of mechanical, biochemical, and non-destructive testing.
For FY2021, the group reported a 16.7% year on year rise in revenue to S$100.9 million.
Operating profit edged up 5.6% year on year to S$31 million while net profit inched up 1.2% year on year to S$24.8 million.
VICOM’s free cash flow remained healthy at S$17.4 million for FY2021, though it was lower than FY2020’s S$21.7 million.
A final dividend of S$0.0324 and a special dividend of S$0.02 were declared.
Along with the interim dividend of S$0.0304, the total dividend for FY2021 came up to S$0.0828.
Shares of VICOM provide a trailing dividend yield of 4.1%.
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Disclaimer: Royston Yang owns shares of Singapore Exchange Limited and VICOM.