Singapore Stocks To Pay Dividends

3 Singapore Stocks To Pay Dividends for 20 Years And More

Singapore Stocks To Pay Dividends: A select group of US stocks has been paying out dividends for many decades. Some of these popular stocks include Coca-Cola (NYSE: KO) and Procter and Gamble (NYSE: PG).

Coca-Cola has increased its dividend over six decades while Procter and Gamble have done so for 66 consecutive years. However, Singapore income investors must pay a 30% withholding tax if they receive that dividend from a US company.

With a payout history that spans a long period of time; it comes as no surprise that several companies pay a dividend in Singapore as compared to in the US despite the market conditions.

Despite being a younger nation than the US; Singapore is home to companies that have remained resilient through booms and busts, which represent a steady flow of passive income for investors. Here are three stocks that have paid dividends for two decades or more.

In this article, we will see the best Singapore dividend stocks for 2022.

3 Singapore Stocks To Pay Dividends for 20 Years or More

List of three Singapore Stocks To Pay Dividends

Best Dividend StocksDividend per share
Singapore Exchange LimitedS$0.08
VICOM LtdS$0.02
Singapore Technologies Engineering LtdS$0.04
Best Dividend Stocks Singapore 2022

You might wonder what is Singapore Exchange Limited!

The Singapore Exchange (SGX) is full-service equity, fixed income, derivatives, commodities, and foreign currency exchange. The SGX came into being by combining three entities; —the Stock Exchange of Singapore, the Singapore International Monetary Exchange, and the Securities Clearing and Computer Services Pte.

Singapore Exchange Limited (SGX: S68)

In November 2000, the Singapore Exchange listed its shares for public investors. The acquisition of the Singapore Commodity Exchange was completed in 2008.

Picture credit: Singapore Exchange

SGX is a Singaporean stock exchange operator that has paid out a dividend consistently since its first payment in fiscal 2001. The payout was S$0.04 at the start and increased to S$0.08 as of FY2021.

Singapore-based SGX currently enjoys the benefits of monopoly and continues to generate healthy revenue and free cash flow in different economic cycles. The Exchange believes that it is in the optimal place for action; because of the investor’s exposure to Asian opportunities and interesting growth areas like ETFs and ESG.

The group released a respectable set of earnings for the first half of its fiscal year 2022. Revenue was flat year on year at S$522 million while net profit was down 9% year on year to S$219 million due to higher expenses.

Despite having a lower net profit, SGX continued to pay out a dividend of S$0.08 for its second quarter as last year, maintaining its trailing 12-month dividend of S$0.32.

Because The Stock Exchange Group has linked up with India, Thailand, and Shenzhen; its clients are able to trade a bigger number of financial options.

VICOM Ltd (SGX: WJP)

VICOM Ltd is Singapore’s leading provider of various inspection and technical testing services in the Southeast Asia region. Established in 1981, VICOM went public in 1995. Since then, it has grown to be a highly advanced quality assurance company; that provides services in fields like mechanical, biochemical, civil engineering, and non-destructive testing. VICOM has won multiple awards for its excellence as well as its business practices.

Singapore Stocks To Pay Dividends
Picture Credit: Alpha Edge Investing

The VICOM Group is a subsidiary of ComfortDelGro Corporation Limited which is the world’s 2nd-largest transport company.

VICOM has paid dividends since the turn of the century and is a free cash flow machine for investors. The total dividend back in the fiscal year 2000 (ended 31 March 2000) was S$0.00925 after adjusting for the 4-for-1 stock split in 2020.

The company pays a S$0.0304 dividend per share in the annual report ending October 2021. For the fiscal year 2021, VICOM paid out a total dividend of $0.02, which is a 9-fold increase over the past 21 years.

Singapore Technologies Engineering Ltd (SGX: S63)

Singapore Technologies Engineering Ltd. (STE) offers the latest in engineering and communications technology for both commercial and military use. With offices across the globe, ST Engineering is a leader in engineering and maintenance services that provide incorporation of aerostructures and systems, aerospace MRO, aviation assets management, urban solutions, unmanned aerial solutions, sensor and electro-optics, and defense and homeland security, cybersecurity solutions.

Singapore Stocks To Pay Dividends
Picture Credit: BRIGHTSPARKS

STE was listed in December 1997 and has been paying out an annual dividend for the last 24 years.

Temasek Holdings is the engineering group’s largest shareholder. As of February 2022, it has a 51.7% stake in the company. STE’s latest financial report (fiscal 2022’s first quarter) revealed that the company is continuing to do well, seeing an increase of 13% to S$2 billion for its business in 1Q2022.

The business also remained strong for the corporation, with S$2.4 billion of new contracts awarded in 1Q2022; bringing its order book to a new record-high of S$21.3 billion. The board has approved an interim dividend of S$0.04 per share per quarter, taking the prospective full-year dividend to S$0.16, up from S$0.15 a year ago.

Best Dividend Stocks Singapore 2022

5 high dividend stocks in Singapore are:

  • Micro-Mechanics (Holdings) Ltd (SGX: 5DD)
  • Grand Venture Technology (SGX: JLB)
  • Venture Corporation Limited (SGX: V03)
  • AEM Holdings Limited (SGX: AWX)
  • Sheng Siong Group Ltd (SGX: OV8)

FAQ

How are dividends paid in Singapore?

Singapore offers the option to pay dividends in stocks, property, or cash. Regardless of the dividend type, these tend to offer stability for shareholders.

Do I need to pay tax for dividends in Singapore?

In Singapore, dividends are tax-free. This means that the company that is paying the dividend does not have to pay any tax and shareholders do not as well.

How long must I hold stock to get the dividend?

To collect the stock’s dividend, you need to own this stock for at least 2 days prior to the dividend ex-date. After that time has passed, you can sell these shares on the public market.

How do I know if I have a CDP account?

For your convenience, we would like to remind you that if you already have a CDP Securities Account, please call 6535 7511. If so, you may request for your CDP Securities Account number to be sent via SMS to your mobile phone instantly.

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