3 Singapore-Listed Dividend Companies That Are Perfect For Retirement

Companies which are ideal to buy during retirement generally have strong businesses and excess cash to dole out to shareholders as dividends. With this in mind, let’s look at three Singapore-listed stocks that could give you a steady stream of dividend income in your golden years.

Company #1

VICOM Limited (SGX: V01) is a leading provider of technical testing and inspection services in Singapore. In 2017, the company had a 74.5% share of the vehicular testing market in our Garden City.

From 2013 to 2017, VICOM managed to grow its total dividend (including special dividends) at a remarkable annual rate of 12.5% from S$0.225 per share to S$0.36 per share. In the second quarter of 2017, VICOM adjusted its dividend policy to payout at least 90% of its net profit as a dividend; the previous ratio was 50%.

VICOM also raised its interim dividend by 2.6% from S$0.1312 per share in 2017’s second quarter to S$0.1346 per share in 2018’s second quarter. At VICOM’s share price of S$6.02 currently, the company has a trailing dividend yield of 6%.

Company #2

Next up is CapitaLand Mall Trust (SGX: C38U), the largest retail real estate investment trust (REIT) by market capitalisation in Singapore’s stock market. The REIT owns 15 shopping malls in Singapore, including Tampines Mall, Junction 8, and Plaza Singapura. REITs are required to pay out at least 90% of their taxable income to unitholders as distributions to enjoy tax benefits. As such, REITs typically have high distribution yields and are thus popular among retirees.

CapitaLand Mall Trust’s distribution per unit (DPU) has increased by 2.1% per year from S$0.1027 in 2013 to S$0.1116 in 2017. In the third quarter of 2018, the RETI’s DPU rose 5% year-on-year to S$0.0292. There is potential for more DPU growth for CapitaLand Mall Trust with the opening of Funan in the second quarter of 2019; Funan is going to be Singapore’s first online-and-offline shopping centre.

CapitaLand Mall Trust’s unit price is at S$2.22 right now, giving the REIT a trailing distribution yield of 5.1%.

Company #3

Singapore Exchange Limited (SGX: S68), or SGX in short, is the final company on my list. The company is the only stock market operator in Singapore and it provides listing, trading, clearing, settlement, depository, and data services.

SGX’s dividend has grown from S$0.28 per share in its fiscal year ended 30 June 2014 (FY2014) to S$0.30 per share in FY2018, which translates to an annual growth rate of 1.7%. To know more about the local bourse operator’s dividend, such as its dividend history, dividend policy, and dividend sustainability, you can head here.

At SGX’s current share price of S$7.22, the bourse operator has a trailing dividend yield of 4.2%.

Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of VICOM Limited, CapitaLand Mall Trust and Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares in VICOM Limited, CapitaLand Mall Trust and Singapore Exchange Limited.