Investing in stocks can be a great way to grow your wealth, especially if you focus on those that offer high dividend yields. Dividend yields are essentially a measure of how much a company pays out in dividends each year relative to its stock price. A high dividend yield can be a sign of a company’s strong profitability and commitment to returning value to shareholders. In Singapore, several stocks offer more than a 6% dividend yield, making them attractive options for income-focused investors. Let’s dive into six such stocks that you might want to consider.
1. DBS Group
DBS Group Holdings Ltd (SGX: D05) isn’t just any bank; it’s Singapore’s biggest bank by market size. It offers all sorts of financial services, from banking to insurance and investing. Thanks to higher interest rates lately, DBS has been doing really well. In 2023, its total income went up by 22% to S$20.2 billion, and its profits before allowances rose by 29% to S$12.1 billion. What’s more, its net profit increased by 23% to S$10.1 billion. Because of these strong results, DBS upped its quarterly dividend to S$0.52, making the annual dividend S$2.16 per share. This change gives the bank’s shares a 6.2% dividend yield. They’ve even decided to give out bonus shares to thank their shareholders. The CEO believes 2024 will continue to be a good year, especially with new income from its recent acquisition in Taiwan.
2. OCBC
Another leading bank in Singapore, Oversea-Chinese Banking Corp (SGX: O39), offers a wide range of financial services and is known for its stable performance and robust services. With earnings per share of 1.56 and a reasonable price-to-earnings ratio, the bank displays a sound financial standing. Investors can appreciate the bank’s dividend yield, which is at a healthy 6.2%. As one of the larger financial institutions, OCBC has shown that it can weather market fluctuations while still rewarding shareholders. Its dividend payout ratio of 50% demonstrates its commitment to returning profits to investors, making it a noteworthy contender for those seeking dividends.
3. Hongkong Land
Hongkong Land Holdings Ltd (SGX: H78) is a big player in property. They own and manage top-notch office and retail spaces in major cities like Singapore, Hong Kong, Beijing, and Jakarta. In 2023, despite some challenges in the economy, Hongkong Land kept its ground. Its revenue dropped a bit to US$1.8 billion, and its operating profit went down by 4.1% to US$810.9 million. Even so, the company kept its dividend at US$0.22, which means its shares have a 6.8% dividend yield. The management keeps an eye on its properties in Hong Kong but is optimistic about making more from its projects in China and Hong Kong.
4. CapitaLand Ascott Trust
CapitaLand Ascott Trust (SGX: HMN) showcases its strength in the hospitality sector with an impressive dividend yield of 7.26%. This yield is backed by earnings per share of 0.06 and a solid price to book value, ensuring that investors are tapping into a valuable asset base. With travel and hospitality recovering, this trust is well-positioned to benefit from the uptrend and continue its commitment to high dividends.
5. Mapletree Logistics Trust REIT
Mapletree Logistics Trust REIT (SGX: M44U) is tapping into the growing e-commerce market through its vast array of logistics assets. With a dividend yield of 6.2% and earnings per share of 0.10, it stands as a promising investment for those seeking regular income from their stock holdings. Its price-to-earnings ratio and book value ratio underscore stable financial health, and the trust’s strategic asset positioning promises sustained growth and profitability, potentially ensuring steady dividends for investors.
6. NetLink NBN Trust
NetLink NBN Trust (SGX: CJLU) plays a critical role in Singapore’s broadband network infrastructure. With a dividend yield of 6.2% and modest earnings per share of 0.03, the trust has managed to stand out as a dividend-paying investment. In a digital age where connectivity is key, NetLink’s centrality to Singapore’s telecommunications infrastructure could mean sustained demand for its services and, by extension, consistent dividends. Netlink NBN Trust could also maintain strong earnings visibility for investors.
Invest smart to generate regular income
Investing in stocks with high dividend yields can be a smart way to generate regular income. However, it’s important to do your homework and understand the risks involved. Stocks like DBS Group, Hongkong Land Holdings, and CapitaLand Ascott show that solid companies can offer attractive returns to their shareholders. Always consider the company’s overall health and future prospects before making any investment decisions. Happy investing!
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of the company mentioned.
