4 Dividend Stocks to Own for the Rest of Your Life

·5-min read
Dividends Rising
Dividends Rising

There’s nothing more comforting than receiving a dividend in your bank account.

Not only does it represent cold, hard cash that you can use as you wish, but it’s also a tangible return on your investment that is not dictated by volatile share prices.

Dividends have the added advantage of being a passive source of income.

“Passive” means that you don’t need to work to obtain this flow of cash and can just sit back and relax as these dividend stocks pay you to own them.

As a bonus, Singapore’s tax authorities do not tax dividend income; compare this to rental income from owning an investment property that is subject to taxation.

If you are an income-seeking investor, you’ll probably want to know which stocks can pay you dividends well into your retirement.

Here are four dividend stocks that you can buy and hold for the rest of your life.

DBS Group (SGX: D05)

DBS needs no introduction, being Singapore’s largest bank with a market capitalisation of around S$77 billion.

The bank represents the bedrock of Singapore’s economy and was voted “The World’s Best Bank” by Euromoney for four straight years.

DBS was also voted the world’s best digital bank because of the launch of its digital exchange, its new blockchain payments joint venture, and its digital adviser NAV planner that taps on artificial intelligence.

Meanwhile, the lender has steadily increased its annual dividend from S$0.56 in 2009 to S$1.20 in 2021.

For the first quarter of fiscal 2022 (1Q2022), DBS reported a creditable set of earnings and also paid out an interim quarterly dividend of S$0.36.

Annualised dividend stands at S$1.44 per share, translating to a forward dividend yield of 4.8%.

iFAST Corporation Limited (SGX: AIY)

iFAST is a financial technology company that operates a platform for the buying and selling of equities, bonds, and unit trusts.

iFAST was incorporated in the year 2000 and offers access to over 15,000 investment products and has assets under administration (AUA) of around S$18.63 billion as of 31 March 2022.

The group has been consistently paying out a quarterly dividend since its listing in December 2014.

The dividend per share has grown from S$0.0279 in the fiscal year 2015 (FY2015) and has increased to S$0.048 in FY2021.

For 1Q2022, net profit declined by 34.9% year on year to S$5.74 million due to poor stock market conditions.

However, the fintech company has maintained its interim dividend of S$0.01 per share.

iFAST continues to build on the strategic initiatives that it announced in its four-year plan, such as becoming “bigger and better” and building a global business model.

Its Hong Kong division’s earnings are set to surge from next year while the group also purchased a UK digital bank for S$73 million.

Haw Par Corporation Ltd (SGX: H02)

Haw Par is a conglomerate that has four core divisions – healthcare, leisure, investments, and property.

The group is famous for its Tiger Balm brand of ointments and salves that are sold worldwide.

Listed in 1969, the conglomerate has a long history of paying out twice-yearly dividends.

The dividend per share started at S$0.20 back in FY2010 but has increased by 50% to S$0.30 in FY2021.

For FY2018, the group rewarded shareholders with a special dividend of S$0.85 to commemorate its 50th anniversary, bringing the total dividend that year to S$1.15 per share.

Haw Par has shown its ability and willingness to continue doling out steady dividends to shareholders through good times and bad.

Leveraging the strength of its Tiger Balm brand, the group should continue to pay out dividends for the foreseeable future.

Boustead Singapore Limited (SGX: F9D)

Boustead Singapore, or BSL, is another conglomerate with four divisions – energy-related engineering, real estate solutions, geospatial technology, and healthcare.

BSL was listed way back in 1975 and has regularly paid out dividends through different economic cycles.

The group resumed paying dividends in 2003 and has not missed a single year of dividend payments since then.

BSL has continued paying dividends even through the Great Financial Crisis and the recent pandemic.

For its latest fiscal 2022 ended 31 March 2022, the group has proposed a final dividend of S$0.025.

Together with its interim dividend of S$0.015, the conglomerate would have paid out a total ordinary dividend of S$0.04, unchanged from a year ago.

BSL’s shares offer a trailing dividend yield of 4.2%.

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Disclaimer: Royston Yang owns shares of DBS Group, iFAST Corporation Limited and Boustead Singapore Limited.

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