Cash is the lifeblood of any business.
If a business generates consistent free cash flow and has ample cash on its balance sheet, it has more flexibility on how to deploy it.
Companies with these attributes are viewed as being more resilient to economic cycles as they can pay out dividends or buy back shares.
If you’re an income-seeking investor, you should filter out such companies to include in your buy watchlist.
Dividends not only help to boost your passive income flow but also act as a tangible return on your investment.
And as the economy faces a possible slump, dividend-paying stocks can also help to weather your portfolio against a downturn.
Here are five Singapore REITs and blue-chip stocks that you can count on for dependable dividends.
Mapletree Pan Asia Commercial Trust (SGX: N2IU)
Mapletree Pan Asia Commercial Trust, or MPACT, is a retail and commercial REIT with 18 properties located in four countries.
These properties have a total net lettable area of 11 million square feet and are valued at S$17.1 billion as of 31 March 2022.
MPACT’s sponsor is Mapletree Investments Pte Ltd, a unit of Temasek Holdings.
The REIT reported a strong set of results for its fiscal 2023’s first half (1H2023) ending 30 September 2022.
Gross revenue jumped 44.9% year on year to S$353.2 million due to the merger of Mapletree Commercial Trust with Mapletree North Asia Commercial Trust.
Net property income (NPI) also increased by the same quantum to S$275.2 million.
MPACT’s distribution per unit (DPU) rose 12.5% year on year to S$0.0494, giving its units a forward distribution yield of 6%.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank, or UOB, is Singapore’s third-largest bank.
The lender reported a stellar set of earnings for its fiscal 2022’s third quarter (3Q2022).
Rising interest rates led to a 39% year on year jump in net interest income to S$2.2 billion for the quarter.
Net profit for the bank climbed 34% year on year to hit a record high of S$1.4 billion for 3Q2022.
UOB had paid out a S$0.60 interim dividend earlier this year and a final dividend of S$0.60 last year, bringing its trailing 12-month dividend to S$1.20.
At a share price of S$31, the bank’s shares offer a trailing dividend yield of 3.9%.
Looking ahead, interest rates look poised to rise further and will boost the bank’s net interest income heading into FY2023.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT that owns nine retail malls and an office building with assets under management (AUM) of around S$6.2 billion as of 30 September 2022 (FY2022).
FCT reported an upbeat set of earnings for FY2022, with gross revenue up 4.6% year on year to S$356.9 million.
NPI rose 4.9% year on year to S$258.6 million while DPU inched up 1.2% year on year to S$0.12227.
The retail REIT’s units offer a trailing distribution yield of 6%.
FCT has a strong sponsor in Frasers Property Limited (SGX: TQ5) and its suburban malls should also prove resilient during a downturn.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a provider of technology products, services and solutions with a portfolio of more than 5,000 products and solutions.
For the first nine months of 2022 (9M2022), Venture reported a 28% year on year jump in revenue to S$2.8 billion.
Net profit climbed 25% year on year to S$271.7 million.
The group paid out a final dividend of S$0.50 in FY2021 and an interim dividend of S$0.25 for 1H2022, bringing its trailing 12-month dividend to S$0.75.
Shares of Venture Corporation provide a trailing dividend yield of 4.4%.
Looking ahead, the technology company warned that its science and technology market segments may come under pressure should geopolitical tensions and other headwinds persist.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-focused REIT with 11 shopping malls, five business park properties and four logistics park properties.
CLCT has a strong sponsor in CapitaLand Investment Limited (SGX: 9CI) and its portfolio is spread out across 12 Chinese cities.
The REIT reported continued high occupancy of 94% and above across all its assets for its 3Q2022 business update.
Gross revenue rose 7% year on year to RMB 1.4 billion while NPI improved by 7.5% year on year to RMB 970.8 million.
Both its retail and new economy assets also enjoyed positive rental reversion of 4.9% and 5.6% for 3Q2022, respectively.
CLCT paid out a trailing 12-month DPU of S$0.086, giving its units a trailing distribution yield of 7.7%.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
