Dividends can be a powerful tool for investors seeking financial freedom.
This form of passive income can be gradually built up by owning dividend-paying stocks over the long term.
As these businesses pay out higher dividends, this stream of passive income should also grow in tandem.
By taking advantage of compounding, you can increase your flow of dividends to replace your earned income by the time you retire.
Here are five dividend-paying stocks that an income investor can add to his/her buy watchlist.
Jason Marine Group (SGX: 5PF)
Jason Marine Group, or JMG, is a marine communication equipment and service provider for offshore vessels arriving in Singapore or around the Asia region.
The group reported a strong set of earnings for its fiscal 2025 (FY2025) ending 31 March 2025.
Revenue climbed 40.3% year on year to S$48.6 million while gross profit jumped 42.1% year on year to S$14.6 million.
Net profit stood at S$777,000, sharply higher than the previous year’s S$92,000.
Jason Marine, however, generated negative free cash flow of around S$2.3 million for FY2025.
Despite this, the group doubled its first and final dividend to S$0.005.
The group is aware of the macroeconomic environment and is cognisant of Trump’s tariffs, which may impact its financial performance.
Jason Marine will work on extending its footprint into the renewable offshore segment while exercising prudence in managing operating costs.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a luxury watch retailer with over 65 boutiques in 14 cities.
Some of the brands sold by the group include Rolex, Cartier, Hublot, and Chopard.
THG reported a mixed set of earnings for FY2025.
Total revenue inched up 3% year on year to S$1.18 billion, but net profit tumbled 13% year on year to S$135.8 million.
The weaker result was because of a lower share of profit from associates and a fair value loss on its investment properties.
Free cash flow, however, rose 15.7% year on year to S$129.9 million for FY2025.
A final dividend of S$0.04 was declared, taking the total dividend for FY2025 to S$0.06.
CEO Michael Tay attributed the weaker performance to intensified competition in the luxury watch sector, along with inflationary pressures that raised expenses across its boutiques.
The industry continues to face volatile economic conditions that should result in more cautious consumer sentiment.
Market and industry consolidation will continue to pressure all watch retailers such as THG.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, builds, owns, and operates the passive fibre network infrastructure for Singapore’s Nationwide Broadband Network (NBN).
The group reported a resilient set of results for FY2025, with revenue dipping 1% year on year to S$407 million.
Net profit fell by 7.6% year on year because of higher depreciation expenses and finance costs.
Despite the lower profit, distribution per unit (DPU) edged up 1.1% year on year to S$0.0536.
NetLink NBN Trust saw steady growth in residential connections at 1,523,724, up from 1,506,997 a year ago.
Non-residential connections, however, dipped slightly to 53,264 from 53,482 because of customer churn.
The government’s launch of Smart Nation 2.0 in October 2024 should be a boon for NetLink NBN Trust.
The plan is to upgrade broadband speeds to 10 Gbps by 2026, which should help to boost the group’s business further.
UMS Integration (SGX: 558)
UMS Integration provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related equipment.
For the first quarter of 2025 (1Q 2025), revenue rose 7% year on year to S$57.7 million.
Net profit stayed flat year on year at S$9.8 million.
The group generated a positive free cash flow of S$435,000 for the quarter.
UMS Integration proposed an interim dividend of S$0.01, dipping below last year’s S$0.012.
Global fab equipment spending for front-end facilities is projected to increase by 2% year on year to US$110 billion, according to SEMI.
Fab equipment spending should rise by 18% in 2026, reaching US$130 billion.
These favourable trends bode well for UMS Integration, and the group will carry on with the qualifications of many new production introductions for its key customer.
StarHub Ltd (SGX: CC3)
StarHub is one of Singapore’s major telecommunication companies and provides a range of mobile, pay TV, and broadband services.
The group paid out a final dividend of S$0.032 on the back of a 7.3% year-on-year increase in net profit to S$160.5 million.
For 1Q 2025, StarHub reported a downbeat set of earnings as higher expenses ate into its net profit.
Revenue dipped by 2.4% year on year to S$540.5 million.
Net profit tumbled 18.4% year on year to S$31.8 million, and the telco saw its free cash flow plunge 63% year on year to S$32 million.
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Disclosure: Royston Yang owns shares of NetLink NBN Trust.
