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As a Singaporean investor, it's important to have a well-balanced portfolio that not only provides capital appreciation, but also delivers a steady stream of dividend income. Dividend-paying stocks can be a powerful wealth-building tool, especially when those dividends grow consistently over time.
To identify the most promising dividend growers in the Singapore market, I screened for companies that met the following criteria:
Earnings per share (EPS) growth > 8% per year
Revenue growth > 10% annually
Price-to-Earnings Growth (PEG) ratio < 1
Dividend yield > 3%
By focusing on these key metrics, I was able to pinpoint 6 Singapore-listed stocks that have demonstrated a proven track record of growing their dividends year after year. These companies span a diverse range of industries, from real estate and hospitality to engineering and consumer goods.
By investing in these reliable dividend growers, you can set yourself up for a prosperous financial future and generate a steadily increasing stream of passive income. Let's dive into the details of these 6 top dividend stocks:
1. Centurion Corporation
This integrated workers accommodation provider has steadily increased its dividend payout over the past 5 years, making it a solid pick for income-focused investors. As Singapore's economy continues to grow, the demand for quality worker housing is likely to remain strong, underpinning Centurion's future dividend potential.
It has steadily increased its dividend payout from $0.02 per share in 2018 to $0.03 per share in 2023, representing a impressive 50% growth over the past 5 years.
2. Boustead Singapore
This multi-disciplinary engineering services company has a diverse business model spanning real estate, energy and resources. Boustead's innovative solutions and strong client relationships have translated into rising dividends, making it an attractive pick for dividend-focused investors.
Boustead has grown its dividend from $0.03 per share in 2018 to $0.06 per share in 2023, a 100% increase!
3. Haw Par Corporation
Best known for its iconic "Tiger Balm" brand, Haw Par has evolved into a diversified business with healthcare, property and investments. The company's prudent management and healthy cash flows have allowed it to consistently raise its dividend payouts.
The company has increased its dividend from $0.30 per share in 2018 to $0.40 per share in 2023, a 22% growth, thanks to its prudent management and healthy cash flows.
4. Fraser and Neave (F&N)
A household name in Singapore, F&N is a diversified consumer goods conglomerate with interests in beverages, dairies and real estate. The company's strong brand equity and market leadership have translated into a long history of dividend growth.
F&N has grown its dividend from $0.05 per share in 2018 to $0.06 per share in 2023, a 20% increase.
5. ValueMax Group
As one of Singapore's largest pawnbroking chains, ValueMax provides short-term collateral loans to consumers. The company's defensive business model and prudent risk management have supported its ability to consistently raise dividends.
ValueMax has raised its dividend from $0.01 per share in 2018 to $0.02 per share in 2023, a 100% increase.
6. Jardine Cycle & Carriage
This conglomerate has stakes in a diverse range of businesses, including automotive, financial services and property. It has increased its dividend from $1.19 per share in 2018 to $1.60 per share in 2023, a 30% growth. Jardine C&C's diversified revenue streams and strong cash generation across its automotive, financial services and property businesses have enabled it to reward shareholders with growing dividends over time.
Summary
These 6 Singapore-listed stocks have demonstrated their ability to consistently grow their dividends, making them attractive options for income-seeking investors. By including these reliable dividend growers in your portfolio, you can look forward to a steady flow of passive income to complement your capital gains.
As with any investment, it's important to conduct your own research and due diligence before making a decision. But with their track records of dividend growth, these 6 Singapore stocks could be worth considering as part of your long-term wealth-building strategy.
Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.