There are stocks suitable for every stage of your life, whether you just started work or are saddled with responsibilities to both your kids and your parents.
As you grow older and approach your retirement age, you seek different requirements from the stocks you own.
A key consideration is business stability and certainty as you will not want to witness the business crumbling when it encounters difficulties.
With this in mind, blue-chip stocks and recession-resistant companies should factor highly into your consideration.
In addition, you’d want to look for a steady source of passive income in the form of dividends.
These dividends will help to sustain your lifestyle as you enjoy your golden years.
Here are four stocks that are suitable for your portfolio should you choose to retire.
DBS Group (SGX: D05)
Singapore’s largest bank, DBS Group, offers a comprehensive range of banking and investment services to both individuals and corporations.
The lender is a bastion of stability as it forms one of the key pillars of Singapore’s economy.
The bank had just released a set of record-breaking financial numbers when it reported its fiscal 2022 results this week.
Total income surged to a new high of S$16.5 billion as higher interest rates lifted the group’s net interest income.
Net profit climbed 20% year on year to S$8.2 billion, with CEO Piyush Gupta stating that the bank “has a shot” at attaining its goal of S$10 billion in net profit this year.
DBS has also raised its quarterly dividend from S$0.36 to S$0.42 per share and declared a special dividend of S$0.50 in line with the strong results.
Looking ahead, the bank expects healthy mid-single-digit year-on-year loan growth for 2023 and for fee income to rise by double-digits year on year as China reopens its borders.
Haw Par Corporation Ltd (SGX: H02)
Haw Par is a conglomerate with four core divisions – healthcare, leisure, property, and investments.
The group is the owner of the iconic Tiger Balm brand, one of the world’s leading topical analgesic brands that is distributed in more than 100 countries.
Haw Par saw its net profit rebound strongly as border reopenings led to more sporting events being held worldwide, benefitting its Healthcare division’s sales and profits.
Revenue for the first half of 2022 (1H2022) jumped 45.1% year on year to S$95.5 million while net profit climbed 45.8% year on year to S$77.2 million.
Of note, the healthcare segment saw its revenue shoot up from S$57.4 million in 1H2021 to S$86.8 million in 1H2022.
Haw Par has demonstrated its resilience by generating healthy free cash flow in both 2021 and 2022.
An interim dividend of S$0.15 was paid for 1H2022.
Coupled with 2021’s final dividend of S$0.15, a total of S$0.30 per share was paid out in the last 12 months.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two in Germany, and three in Australia.
CICT’s assets under management clocked in at S$24.2 billion as of 31 December 2022.
The REIT has a strong sponsor in CapitaLand Investment Limited (SGX: 9CI), providing both stability and assurance to investors.
CICT reported a respectable performance for 2022, with gross revenue rising by 10.5% year on year to S$1.4 billion.
Its net property income improved by 9.7% year on year to S$1 billion while distribution per unit for 2022 increased from S$0.104 a year ago to S$0.1058.
There could be more to come as the REIT undertakes an asset enhancement initiative at Clark Quay to upgrade and restore the buildings and outdoor refreshment area.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of Singapore’s largest supermarket chains with 66 outlets across the island.
The group sells a wide variety of products including fresh and chilled produce as well as toiletries and essential household items.
The retailer’s business has proven resilient during the pandemic as heartlanders patronised its stores for food and essential items.
For the first nine months of 2022 (9M2022), Sheng Siong reported a slight 1.9% year on year dip in revenue to S$1 billion.
Net profit, however, remained flat year on year at S$100.4 million.
The group also generated healthy free cash flow for both 9M2022 and 9M2021.
An interim dividend of S$0.0315 was paid out late last year.
Together with 2021’s final dividend of S$0.031, Sheng Siong’s trailing 12-month dividend totaled S$0.0625.
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Disclosure: Royston Yang owns shares of DBS Group.
