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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
ABOUT THE FIFTH PERSON
The Fifth Person is an investment research and education company. We
publish a financial blog at FifthPerson.com, and host a weekly financial podcast on YouTube and Spotify.
The Fifth Person is a two-time winner (2018, 2020) of SGX Orb Awards in the 'GoTo.com' category organized by the Singapore Exchange. The award recognizes the independent investment-related website or financial blog that most empowers investors to make educated decisions with their money.
We believe in spreading a message that sound investment knowledge,
financial literacy, and intelligent money habits can help millions of people around the world achieve financial security, freedom, and lead better lives for themselves, their family, and their loved ones.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
OUR CO-FOUNDERS
Victor Chng and Rusmin Ang are
the Co-founders of The Fifth Person.
Their investment articles and
commentary have been featured in the media including Channel NewsAsia, The Business Times, Victor Chng
AsiaOne, and on national radio on
Money FM 89.3.
The Fifth Person was also featured
on the CPF’s lifetime retirement investment scheme video.
I’ll let you find out more about us as
we get to know each other better, so let’s not waste any more time and let’s get into the meat of this Rusmin Ang report.
Let’s go!
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
THE DIVIDEND KINGS
Dividend investing is one of the easiest ways to add passive income to your life. It’s essentially making money while you sleep. Investing in dividend- paying stocks provides a regular source of income to your portfolio, which, in the long term, can potentially replace your active income.
While many companies reward their shareholders with dividends, there is an
elite group known as the "Dividend Kings." These companies have a history of consistently paying dividends every year, even during economic downturns. The best part about these companies is that they can also consistently increase their dividend per share, effectively giving you a "pay raise" over time. In the long run, some income investors achieve a yield-on- cost of 8% to 15% annually.
In this report, we discuss seven of the top Dividend Kings in Singapore and their outlook for 2024 and beyond.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
2025 AND BEYOND
The Federal Reserve is expected to cut interest rates in the second half of 2024. Over the past two years, the Fed has been raising interest rates to combat inflation. By increasing rates, borrowing becomes more expensive for consumers and businesses.
For instance, higher interest rates make it costlier to finance purchases like houses, cars, or other goods, leading to reduced consumer spending. Similarly, increased borrowing costs can discourage businesses from investing in new projects or expanding operations, thereby curbing economic activity.
REITs have been hit particularly hard in this environment. They typically rely on debt to finance property acquisitions and developments. When interest rates rise, borrowing costs increase, squeezing profit margins and potentially limiting their ability to expand their portfolios.
This explains why REIT share prices have seen a sharp decline over the last two years. However, this period may have presented an ideal opportunity to add quality REITs to a dividend portfolio.
With interest rates likely to decrease in the coming months, we could see a recovery in this sector. In fact, share prices have already started to inch upwards since mid-2024.
There are two key reasons for this: First, REITs can benefit from lower borrowing costs, improving their profitability and potentially enabling them to pursue more acquisitions and development projects. Second, lower interest rates lead to higher property valuations, as the discount rate used in
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
valuation models decreases. This can boost the net asset value (NAV) of REITs and potentially drive up their share prices.
When investing in REITs, the key remains quality.
Another sector likely to be affected by decreasing interest rates is banking.
Over the past two years, banks have benefited from higher interest rates, allowing them to charge more for loans while still paying relatively low interest on deposits. This difference, known as the net interest margin (NIM), generally results in higher profitability for banks.
However, as interest rates decline, banks will earn less interest on their loans and other interest-bearing assets.
On the flip side, lower borrowing costs make loans cheaper for consumers and businesses, potentially increasing demand for mortgages, personal loans, and business loans. This could boost a bank’s loan portfolio and activity volume.
Based on typical banking cycles, we can expect an initial dip in profitability
followed by long-term gains. Although a narrower NIM might reduce profits at first, over time, increased loan demand and economic growth could offset this by expanding the bank’s overall business.
Looking ahead, it’s important to monitor this window of opportunity when
considering bank investments.
With that in mind, let’s discuss seven of the top Dividend Kings in Singapore and their outlook moving into 2025 and beyond.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
How can we not talk about DBS when discussing dividend stocks? Valued at S$102 billion, DBS Bank is the largest company listed on the SGX. It ranks among Asia’s top financial services groups, with a presence in 18 markets worldwide.
Notes: DBS, along with UOB and OCBC, forms the backbone of Singapore’s economy. Many even consider DBS the "national" bank of Singapore, and it’s widely believed that it would likely "not be allowed to fail." This status gives DBS an edge, enabling it to enjoy lower funding costs compared to its peers. This advantage, in turn, allows DBS to consistently generate a significantly higher return on equity than UOB and OCBC.
DBS’s dividend has also grown the fastest among the three banks, with a compound annual growth rate (CAGR) of 12.72% over the last 10 years.
As mentioned earlier in this report, the normalization of interest rates is
expected to impact the bank in the short term. However, this effect is likely to be offset by increased activity volume over the long run.
Therefore, it’s wise to monitor any pullbacks closely when timing your entry.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Apart from being one of the three major banks in Singapore, UOB is also among the top three largest banks in Southeast Asia. United Overseas Bank (UOB) operates a global network of over 500 branches and offices across 19 countries and territories in Asia-Pacific, Europe, and North America.
Notes: Together with DBS and OCBC, UOB forms the trio of banks that underpin Singapore’s economic resilience. These institutions are considered too crucial to fail and benefit from implicit government support.
Unlike DBS, UOB has traditionally maintained a stronger focus on Southeast
Asia. This regional expertise positions the bank for growth opportunities as the region continues to develop economically.
UOB has also been actively investing in digital technologies to enhance
customer experience and operational efficiency. These initiatives are expected to contribute to improved profitability and long-term growth prospects.
For reasons similar to those affecting DBS, particularly with the potential rate cuts, UOB is worth monitoring closely. Additionally, UOB stands out as the only bank still paying special dividends, making it an attractive option for income-focused investors.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Oversea-Chinese Banking Corporation (OCBC) is the second-largest
financial institution in Southeast Asia, with a market capitalization exceeding S$64.7 billion. Over the years, OCBC has expanded its international presence and now operates more than 570 branches and representative offices across 19 countries and regions.
Notes: As one of Singapore’s “big three” banks, OCBC is known for being the more conservative of the trio. The bank follows a balanced business model that combines a strong domestic foundation with strategic regional growth. This diversification helps mitigate risks and capture growth opportunities across different markets.
OCBC has increasingly focused on its wealth management business, aiming
to tap into the growing affluence in Asia. The bank’s recent acquisition of Great Eastern Holdings is expected to facilitate better strategic alignment, enabling deeper integration and more streamlined operations. This consolidation could enhance OCBC’s profitability, potentially leading to higher dividends for shareholders.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Sheng Siong Group is a supermarket retailer in Singapore, operating 69
stores nationwide. Its stores offer a wide range of products, including fresh produce like seafood, meat, fruits, and vegetables, as well as packaged, frozen, and preserved food items.
Notes: Beyond Singapore, Sheng Siong has expanded internationally with
five stores currently operating in Kunming, China. A sixth store is scheduled to open later this year.
As part of its international growth strategy, Sheng Siong has identified China as a significant market due to its large population. Their strategic focus is to open more stores in Kunming. Sheng Siong believes they can enhance their operational margins in China as they achieve better economies of scale.
In Singapore, Sheng Siong expects to continue growing, albeit at a slower
pace, in line with the development of new HDB estates. Historically, the company aims to open two to three new stores in Singapore each year.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
SGX is one of Singapore’s most beloved blue-chip stocks, holding a virtual
monopoly on the country’s securities and derivatives trading. It’s arguably the only business in Singapore that is truly "recession-proof" – investors buy and sell in both bear and bull markets.
Notes: SGX’s resilience shines during economic downturns when trading
volumes tend to peak, making it one of the few companies unlikely to cut dividends during a market crash.
However, the company faces long-term challenges in generating interest in
Singapore’s stock market, partly due to the country’s relatively subdued entrepreneurial landscape and small domestic market.
Despite these challenges, SGX’s pivot towards derivatives and becoming a
multi-asset exchange has proven successful so far and is expected to be a key growth driver in the near to midterm.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Wilmar International Limited is one of Asia's leading agribusiness groups,
with a presence in more than 50 countries and a market capitalization exceeding S$30 billion as of 2023.
Wilmar is the world's largest processor and merchandiser of palm and lauric oils and a major producer of consumer pack edible oils, with strong positions in China, India, and Indonesia. Additionally, the company’s sugar business is one of the largest globally, both in terms of production and processing.
Notes: The company operates across the entire value chain of the agricultural commodity business, including the cultivation of palm oil and sugarcane, processing and refining, as well as the manufacturing of consumer products such as edible oils, specialty fats, and oleochemicals.
This diversified portfolio and robust supply chain make Wilmar International a very resilient player in the global agricultural market, capable of navigating the challenges of fluctuating commodity prices and changing consumer preferences.
One interesting point we’ve observed over the years while tracking Wilmar is that CEO Kuok Khoon Hong consistently buys shares when they trade below S$3.10. With a yield of over 5% today and the CEO’s actions signaling confidence, would you consider adding Wilmar to your watchlist?
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
CapitaLand Integrated Commercial Trust (CICT) is Singapore’s largest
diversified real estate investment trust (REIT), with 21 properties in Singapore; 2 properties in Frankfurt, Germany; and 3 properties in Sydney, Australia. CICT’s total property valuation as of 31 December 2023 stands at S$24.5 billion.
Notes: After the merger of CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT), CICT has demonstrated its ability to navigate headwinds while capitalizing on growth opportunities with its strong domestic portfolio complemented by its overseas presence.
CICT’s strategic priorities, adaptability to evolving trends like hybrid work
models, and commitment to portfolio optimization, all to drive long-term value creation, will provide investor confidence.
At a yield of about 4.3% at time of writing, CICT can be a consideration for
investors seeking price and dividend stability.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Mapletree Pan Asia Commercial Trust (MPACT) owns a diversified portfolio
of 18 commercial properties across key Asian markets, including office spaces, retail properties, and business parks. The portfolio spans five properties in Singapore, two in China, nine in Japan, and one each in Hong Kong and South Korea. Notable properties include VivoCity and Mapletree Business City in Singapore, and Festival Walk in Hong Kong.
Notes: While the current macroeconomic environment—characterized by
high interest rates and currency volatility—presents challenges, MPACT’s focus on prime assets and strategic markets ensures resilience and potential for long-term growth. The REIT’s proactive asset management and prudent financial strategies, such as securing fixed-rate debt and executing strategic divestments, offer stability in uncertain times.
Although the recovery in China remains uncertain, any significant uptick in
economic activity and consumer confidence could have a disproportionately positive impact on MPACT’s portfolio, given its substantial exposure to the Chinese market.
With a yield of over 5% at the time of writing, MPACT appears to be a value
REIT for dividend investors seeking both price recovery and stable dividends.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Parkway Life Real Estate Investment Trust (PLife REIT) owns a portfolio of 63 properties with a total valuation of approximately S$2.23 billion as of 31 December 2023. PLife REIT primarily invests in assets used for healthcare and healthcare-related purposes.
Notes: The majority of its assets are located in Singapore (67.6%), including prominent hospitals like Mount Elizabeth Orchard Hospital, Gleneagles Hospital, and Parkway East Hospital. The remainder of its portfolio is spread across Japan (32.2%) and Malaysia (0.2%).
As the most stable healthcare REIT in Singapore, PLife REIT boasts an
occupancy rate close to 100%, with a weighted average lease expiry (WALE) of 16 years. Additionally, 95% of the portfolio has downside protection, enhancing income stability in the near term.
The REIT is also actively exploring new markets and undertaking significant enhancements, positioning it well for continued growth. While the current yield is around 3.5%, PLife REIT remains a compelling option for investors seeking stable and growing dividends.
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DIVIDEND KINGS – Top 10 Singapore Dividend Stocks For 2025
Keppel DC REIT (KDC REIT) is a data center REIT with a portfolio of 23
high-quality data centers across nine countries in the Asia Pacific and Europe. Its S$3.9 billion portfolio includes key assets such as Keppel DC Singapore 1 and Maincubes AMS01 in Amsterdam.
Notes: Keppel DC REIT’s high-quality portfolio, strategic locations, and
favorable industry trends position it well for continued growth. The increasing adoption of digitalization, cloud computing, and data-intensive technologies like AI and 5G are expected to drive long-term rental growth and sustain high occupancy rates.
While rising interest rates and increasing competition pose challenges, the anticipated tapering of interest rates could soften the impact on Keppel DC REIT.
With a yield of over 5% at the time of writing, Keppel DC REIT presents an
attractive opportunity for investors seeking both growth in dividends and potential share price appreciation.
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