5 Best Dividend-Paying Stocks and REITs in Singapore

If you’re looking to create a source of passive income, dividend investing is usually the first strategy that comes to mind. Simply buy the appropriate company or ETF’s shares and you’ll automatically receive one or several rounds of dividend payouts annually. You can then use this new income stream however you wish, whether to re-invest or settle your bills.

What’s more, investors in Singapore are largely exempt from taxation on their dividends. The biggest examples of non-taxable dividends would be payouts from companies listed on the Singapore Stock Exchange (SGX) and unit trusts in Singapore. However, dividend payouts from US-listed companies to foreign investors are subject to a 30% withholding tax.

This makes dividend investing even more lucrative as you essentially get to keep all of your returns. If you’re looking to kickstart or enhance your dividend investing strategy, read on to learn about the five best dividend-paying stocks and real estate investment trusts (REITs) in Singapore (as of 16 April 2024).

#1: First Ship Lease Trust (D8DU)

• Date listed on the SGX: 27 March 2007
• Trading range (2023): S$0.041 – S$0.084
• Trading range (January 2024 – April 2024): S$0.029 – S$0.068
• Net profit margin (2022): 54.8%
• Net profit margin (2023): 43.1%

As its name would suggest, First Ship Lease Trust charters the product tankers it owns to shipping companies at a fixed rate. It currently has eight such vessels, with each one being built in the early-2000s. Although the trust’s gross profit yoyo-ed in the past four years, it managed to maintain a strong balance sheet.

To illustrate this, First Ship Lease Trust’s total assets at the end of 2023 amounted to approximately US$65.7 million, holding steady from 2022. It also managed to cut its liabilities to around US$10.9 million, down from US$14.3 million in 2022.

#2: Jardine Matheson Holdings Limited (J36)

• Date listed on the SGX: 20 February 1991

• Trading range (2023): US$38.37 – US$54.89

• Trading range (January 2024 – April 2024): US$36.21 – US$43.87

• Net profit margin (2022): 6%
• Net profit margin (2023): 6.6%

Jardine Matheson Holdings Limited is a veteran stock in the SGX. However, its primary listing is actually in the London Stock Exchange, with another secondary one in Bermuda. Its portfolio of companies (Mandarin Oriental, DFI Retail Group, etc.) do business mainly in China and Southeast Asia.

The firm’s steadily rising gross profit is reflected in its growing dividend payouts. With that said, its total assets have steadily dipped from US$93.5 billion in 2020 to US$89.1 billion in 2023. Furthermore, its total liabilities after deducting minority interest have risen from US$30.6 billion in 2020 to US$33.2 billion in 2023.

#3: Hongkong Land Holdings Limited (H78)

• Date listed on the SGX: 1 October 1990

• Trading range (2023): US$3.07 – US$5.05 

• Trading range (January 2024 – April 2024): US$2.99 – US$3.51

• Net profit margin (2022): 8.9%
• Net profit margin (2023): -31.3%

Listed since 1990, Hongkong Land Holdings Limited is another stock which has withstood the test of time in the SGX. The company invests, manages, and develops both commercial and residential properties across China, Hong Kong, and Southeast Asia. Its dividends through the past five years have been nothing if not consistent.

However, its gross profit has steadily declined from 2020 (US$1.1 billion) to 2023 (US$930 million) against the backdrop of slumping commercial property demand. On the bright side, its balance sheet has remained solid, with total assets never dipping below US$40 billion. Total liabilities after deducting minority interest stands at US$8.7 billion as of end-2023.

#4: Prime US REIT (OXMU)

• Date listed on the SGX: 19 July 2019

• Trading range (2023): US$0.08 – US$0.48

• Trading range (January 2024 – April 2024): US$0.09 – US$0.23

• Net profit margin (2022): -16.5%

• Net profit margin (2023): -72.5%

Prime US REIT is the newest listing among all five stocks featured here. This REIT has a focused portfolio, with 14 freehold offices across 13 locations in the US. These include California, Florida, and Texas. However, it has been hurt by rising interest rates in the US and the worldwide drop in demand for commercial property.

Despite that, it has managed to grow its total revenue to approximately US$150 million, up from US$136.2 million in 2020. Its gross profit isn’t too shabby either, decreasing slightly from US$81.3 million in 2022 to US$77.2 million in 2023.

#5: Keppel Infrastructure Trust (A7RU)

• Date listed on the SGX: 12 February 2007

• Trading range (2023): S$0.43 – S$0.57

• Trading range (January 2024 – April 2024): S$0.48 – S$0.51

• Net profit margin (2022): -0.1%
• Net profit margin (2023): 5.3%

Keppel Infrastructure Trust’s name perfectly encapsulates its portfolio of businesses and assets. These include City Energy, the German Offshore Wind Farm, and Senoko Waste-to-Energy Plant. The trust’s dividend payouts have been steadily rising through the years, almost tripling from 2020 to 2023.

Its financials are equally impressive, with gross profit clocking in at S$926.6 million for 2023. In 2020, this was just S$657.5 million. Keppel Infrastructure Trust’s net income stands out too, at approximately S$140 million in 2023. In 2020, the trust’s net income was in the red, losing S$20.1 million that year alone.

What Other Singaporean Companies Should I Look Out For?

Starhill Global REIT (P40U)

This real estate investment trust currently has nine properties in Australia, China, Japan, Malaysia, and Singapore. However, what’s more impressive is that Starhill Global REIT’s financials bucked the trend other real estate trusts and firms have faced. Its gross profit has risen from S$111.9 million in 2020 to S$129.2 million in 2023.

Its assets have held fairly steady during this four-year period too, while its liabilities have dipped. “Steady” is also the perfect descriptor of its dividend yield. It surged from 3.81% in 2020 to 8.23% in 2021 before staying at 7.92% in 2022 and 2023.

Venture Corporation Limited (V03)

This Singaporean firm might not draw the same level of media attention as other glitzy technology companies, but it’s a force to be reckoned with. Venture Corporation is a global technology service, product, and solutions provider with offices in five nations worldwide. It was listed on the SGX in 1992 and has been paying dividends for over 30 years.

The company’s dividend yield has remained at 5.17% since 2020 after being bumped up from 4.82%. Although its financials have weakened a little, its total revenue has never dropped below S$3 billion since 2020. Furthermore, Venture Corporation managed to lower its total liabilities to S$716.9 million for 2023, down from S$908.5 million in 2022.

In Closing

Dividend investing is lucrative for people in Singapore because of advantageous tax laws and the variety of stocks and REITs to choose from. The latter may be hurt by rising interest rates and weaker demand for commercial property worldwide, but dividends for the equities listed here have still been keeping pace with previous years.

On that note, keep in mind these are just a few of the best dividend-paying stocks and REITs in Singapore. As with all other assets, do your own research before putting your money down. There may be other stocks or REITs better suited for your portfolio. Not only that, there may be dividend-paying firms overseas which may be more up your alley as well!

If you’re ready to start your dividend investing journey, check out this selection of the best online brokerages and trading platforms in Singapore. You can easily compare each platform, view their pros and cons, and sign up right away!

Read More:

• How to Pick Dividend Stocks For Your Investment Portfolio
• Best Online Brokerages and Trading Platforms in Singapore
• How to Invest in Property in Singapore Without Buying One
• 7 Most Popular Types of Investments in Singapore
• Guide to Spotting and Buying Undervalued Stocks

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