Dividend investing is a great way to create a passive income.

Singaporeans love money, and who doesn’t like to have extra cash over our regular salary.

Dividend paying stocks are the perfect investment for lazy young investors who wants to buy a stock and hold it forever.

However, savvy investors are aware that not all dividend paying stocks are great stocks to invest, and dividend income is not completely future proof.

Finding good dividend paying stocks takes time and quality of a stocks depends on the dividend stock’s fundamentals and a few of other criteria.

Nonetheless, dividend investing is one of the best way to create wealth.

Investors can can potentially achieve early retirement with passive income through investing when you invest in the right dividend paying stocks.

best dividend stocks to buy in Singapore

Dividend investing is a critical part of investing strategy which I like to use to generate passive income and create multiple income streams to grow my wealth.

Although REITs, and ETFs are great investment that pays dividend, I will not be including them in this list, as this list is purely for stocks that pays dividend.

Here are a few of the dividend paying stocks which I may want to invest for the long term when the price is right.

PS. This is not an investment advice, this is purely for entertainment purpose only. You should do your due diligence when you invest.

1. SBS Transit Ltd. (SGX: S61)

SBS Transit (SGX: S61) is the leading bus operator in Singapore which have fleet of more than 2,700 buses and operates 217 route services. The bus serve 16 interchanges and ore than 3,000 bus stops.

Expanding it’s business, SBS Transit also operates the light rail system (LRT) in Sengkang and Punggol, mass rapid transport (MRT) for the North East Line (NEL).

SBS Transit Ltd. Dividend Yield (2016 to 2021)

SBS Transit is trading with the following stock information at the time of writing:

  • Price: 2.970
  • P/B ratio: 1.503
  • P/E ratio: 10.953
  • Dividend Yield: 4.141%
  • Dividend Yield 5 yr-average: 3.160%

SBS Transit seems to be a pretty good pick for dividend stocks.

In my opinion, it is one of the best Singapore blue chips with high dividends potential.

SBS Transit Ltd. Dividend (2016 to 2021)

Check out my post on SBS Transit for detailed fundamental analyst of this Singapore listed dividend stock.

2. DBS Bank (SGX: D05)

DBS Bank (SGX: D05) is the leading financial service group in Asia with it’s presence in over 18 markets. DBS focus on it’s growth in 3 key area in the world; China, Southeast Asia, and South Asia.

  • S$646 Billions assets in management
  • S$4.72 Billions in net profit
  • USD$7.8 Billion in brand value
  • >30,000 employees

DBS operated in markets such as; Singapore, Hong Kong, People’s Republics of China, Taiwan, Dubai, Australia, Thailand, Mumbai, Malaysia, United Kingdom, United States, Vietnam, Philippines, Korea, Japan, Myanmar, and Indonesia.

DBS Bank Dividend Yield (2016 to 2021)

DBS Bank is trading with the following stock information at the time of writing:

  • Price: 32.440
  • P/B ratio: 1.447
  • P/E ratio: 14.008
  • Dividend Yield: 3.144%
  • Dividend Yield 5 yr-average: 4.160%
DBS Bank Dividend (2016 to 2021)

3. SGX (SGX: S68)

SGX (SGX: S68) is the Stock Exchange of Singapore, it operates the only integrated securities exchange and derivatives exchange in Singapore.

  • SGX provides service such as listing, trading, clearing, settlement, depository and data services
  • 40% listed companies and over 80% of listed bonds are originating outside of Singapore.
  • Headquarter in Singapore, SGX is currently AAA- rated and is globally known for it’s risk management and clearing capabilities. 
  • 681 stocks listed in SGX
  • 50 ETFs listed in SGX from world wide
SGX Dividend Yield (2016 to 2021)

SGX is trading with the following stock information at the time of writing:

  • Price: 9.220
  • P/B ratio: 7.116
  • P/E ratio: 22.416
  • Dividend Yield: 3.471%
  • Dividend Yield 5 yr-average: 3.588%

In my opinion, it is one of the safest blue chip stock you can buy in Singapore, where it is more like a bond than a stock.

SGX Dividend (2016 to 2021)

4. CapitaLand Investment (SGX: 9CI)

My 4th choice is CapitaLand Investment, a newly listed stock in the SGX.

CapitaLand Investment is formed after it have demerged from it’s development business (CapitaLand Development) of CapitaLand Limited.

In 20 September 2021 CapitaLand Limited (SGX: C31) undergo a major restructuring of it’s business and have delisted from the SGX. It have since separated its business into CapitaLand Investment and CapitaLand Development.

  • CapitaLand Investment (SGX: 9CI): Is publicly listed in the SGX and is mainly comprise of 3 activities; Fund management (S$100B), lodging management (S$160K), and capital recycling (S$3B).
  • CapitaLand Development: Comprise of the property development business where it deals with large scale development projects. This arm of the business are privatized, thus will not be able to purchase in the stock market.

CapitaLand Investment (SGX:9CI) is invested in 6 of the major listed real estate funds in Singapore.

  • CapitaLand Integrated Commercial Trust (SGX: C38U)
  • Ascendas Real Estate Investment Trust (SGX: A17U)
  • Ascott Residence Trust (SGX: HMN)
  • CapitaLand China Trust (SGX: CY6U)
  • Ascendas India Trust (SGX: CT6U)
  • CapitaLand Malaysia Mall Trust (KLSE: 5180)
CapitaLand Investment and CapitaLand Development

Image Source: CapitaLand Website.

CapitaLand Investment is trading with the following stock information at the time of writing:

  • Price: 3.370
  • P/B ratio: 1.399
  • P/E ratio: 9.128
  • Dividend Yield: NA%
  • Dividend Yield 5 yr-average: NA%

As CapitaLand Investment do not have much data, we will use past year data of CapitaLand Limited as a guidance.

In the past CapitaLand Limited pays an dividend yield of approx. 2% to 3%.

CapitaLand Investment will probably pay a similar or slightly higher dividend yield, since the development side of the business is separated from CapitaLand Investment.

Although, we lack historical data, I think it is a pretty good opportunity to buy this amazing stock with a great management team.

CapitaLand Limited Dividend Yield (2016 to 2021)

Dividend yield of CapitaLand Limited from 2016 to 2021.

5. ST Engineering (SGX: S63)

ST Engineering (SGX: S63) is my 5th pick for dividend stocks that I can buy and hold for a long time.

ST Engineering a global technology, defense and engineering group that have offices setup across Asia, Middle East and United States serving more than 100 countries.

ST Engineering utilize innovation and technology and have business in the field of aerospace, smart city, defense technology and public security segments.

3 Business segments

  • Commercial Aerospace (CA)
  • Urban Solutions & Satcom (USS)
  • Defense & Public Security (DPS)

Group Revenue breakdown

  • 59% Asia
  • 21% United States
  • 15% Europe
  • 5% Others
ST Engineering Dividend Yield (2016 to 2021)

ST Engineering is trading with the following stock information at the time of writing:

  • Price: 3.720
  • P/B ratio: 5.117
  • P/E ratio: 20.817
  • Dividend Yield: 4.032%
  • Dividend Yield 5 yr-average: 4.228%

ST Engineering is a very stable dividend paying stock, but with the current price, it is overvalued.

P/B ratio, and PE ratio, together with ROE, and EPS Growth rate are great ways to determine if a stock is overvalued, or undervalued.

ST Engineering Dividend (2016 to 2021)
Disclaimer/ Disclosure: I may or may not own some of these stock that is written in my website. I am NOT a Financial Advisor or a Lawyer. The content on this site, or YouTube channel, or any other sources are for educational purposes only. I merely cite my own personnel opinion and is not intended to be personalized investment advice. ​What I've written here is part of my online diary on my investing journey. The information might be wrong and inaccurate. You must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. I will not be liable for any loss you've made. You should always do your own due diligence and consider your financial goals before investing in anything.
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