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Yahoo
25-03-2025
- Business
- Yahoo
4 Dependable Dividend-Paying Singapore Stocks for Your CPF Investment Account
Singapore's Central Provident Fund (CPF) system is a great way to save consistently and grow your retirement funds. The good news is that the CPF Ordinary Account (OA) offers you the option to invest your CPF monies to enjoy even better returns through the CPF Investment Account (CPFIA). You can use your CPFIA to invest in a wide range of Singapore stocks and REITs. For such investments, the company in question must possess strong characteristics such as a robust business model, a consistent dividend track record and steady earnings growth. Here are four reliable Singapore stocks that you can consider for your CPFIA. Haw Par is a conglomerate with four key divisions – healthcare, leisure, property, and investments. Its healthcare division owns the famous Tiger Balm brand which manufactures and distributes ointments, salves, and pain patches. The group reported a commendable set of earnings for 2024. Revenue rose 5.5% year on year to S$244.8 million although gross profit dipped slightly by 0.6% year on year to S$134.1 million. Net profit came in at S$228.3 million, up 5.4% year on year. The business also generated a positive free cash flow of S$50.3 million and received a total of S$149.1 million in dividend income, a step up from the S$136.2 million received in 2023. A final dividend of S$0.20 was declared, unchanged from a year ago. In addition, Haw Par also declared a special dividend of S$1 per share, taking the total dividend for 2024 to S$1.40 per share (inclusive of a S$0.20 interim dividend). The conglomerate has a long, storied history of paying out increasing dividends and this special dividend is akin to extra icing on the cake. Sheng Siong is one of the largest supermarket chains in Singapore with 77 outlets across the island. The retailer sells a wide variety of products including live, and chilled produce along with toiletries, general merchandise, and daily necessities. Sheng Siong demonstrated steady store growth since 2020 when the pandemic broke out, with its store count increasing from 63 to 77 today. 2024 saw continued growth in the retailer's top and bottom lines. Revenue rose 4.5% year on year to S$1.4 billion while operating profit inched up 2.7% year on year to S$159.7 million. Net profit increased by 2.6% year on year to S$137.5 million. The supermarket operator's free cash flow jumped 20.3% year on year to S$200.8 million. Sheng Siong paid out a total dividend of S$0.064, a step up from the S$0.0625 paid for 2023. The group intends to open at least three new stores per year and for 2024, it doubled this target by opening six new stores. Management is waiting for the results of the tender for eight additional stores to be released which could see the retailer opening more stores this year in addition to the two that opened in the first two months of 2025. CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two properties in Germany, and three properties in Australia. The REIT had assets under management (AUM) of S$26 billion as of 31 December 2024. CICT reported a commendable performance despite the presence of headwinds such as high interest rates and persistent inflation. For 2024, gross revenue edged up 1.7% year on year to S$1.6 billion while net property income improved by 3.4% year on year to S$1.15 billion. Distribution per unit (DPU) crept up 1.2% year on year to S$0.1088. Apart from a resilient financial performance, CICT also displayed solid operating metrics. The portfolio's committed occupancy stood at 96.7% while rental reversion came in positive at 8.8% and 11.1% for the REIT's retail and office divisions, respectively. The REIT has two asset enhancement initiatives (AEIs) slated for completion in the second half of this year and should see a full-year contribution from the acquisition of ION Orchard Mall. Parkway Life REIT, or PLife REIT, is a healthcare REIT with a portfolio of 75 properties – three in Singapore, 60 in Japan, 11 in France, and one in Malaysia. Its total AUM stood at around S$2.46 billion as of 31 December 2024. PLife REIT reported a mixed set of earnings for 2024. Gross revenue and NPI dipped by 1.5% and 1.8% year on year, respectively, to S$145.3 million and S$136.6 million. However, DPU stood at S$0.1492, up 1% year on year. The healthcare REIT maintained a moderate gearing level of 34.8% and had a very low cost of debt of just 1.48%. The REIT has also hedged 87% of its interest rate exposure to mitigate further rises in its finance costs. PLife REIT has an enviable of uninterrupted increases in its core DPU since its IPO back in 2007. Close to 91% of its leases (by gross revenue) also have downside protection. Just 2% of the REIT's loans are due for refinancing this year. Want to protect your child's money from inflation? Transform your child's 'piggy bank' into a 'golden goose' that keeps giving even until they have grandchildren. Our latest FREE report shows you a stress-free method and 3 superstar stocks that could protect your child's money from inflation. Click HERE to get a copy of our latest guide. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang does not own shares in any of the companies mentioned. The post 4 Dependable Dividend-Paying Singapore Stocks for Your CPF Investment Account appeared first on The Smart Investor.
Yahoo
28-02-2025
- Business
- Yahoo
4 Reliable Singapore Stocks That Are Perfectly Suited for Your CPF Investment Account
The Central Provident Fund (CPF) Account is one of the best ways to save for retirement. By socking your money away in your CPF Ordinary Account (OA), you can slowly build a large enough nest egg that can generate regular income for yourself. However, the CPF OA pays an interest rate of just 2.5%, which is barely enough to keep pace with long-term inflation, which runs between 3% to 4% annually. Hence, you should invest your CPF OA money to achieve a better long-term return, and a good place to start is to select solid businesses with long, dividend-paying track records. To do so, you need to open a CPF Investment Account. Click HERE for more details. Here are four reliable Singapore stocks that you can sock into your CPF Investment Account. Venture Corporation is a blue-chip contract manufacturer and a provider of technology products, services, and solutions. The group has clients in many technology domains such as life science, genomics, medical devices and equipment, and healthcare. Venture reported a downbeat set of earnings for 2024 as the group is still affected by the current semiconductor downturn. Revenue dipped by 9.6% year on year to S$2.7 billion and net profit fell by 9.3% year on year to S$245 million. Despite the lower profit, Venture generated a positive free cash flow of S$466 million for 2024, comparable to the S$473.9 million churned out in 2023. In terms of dividends, the group has also been very consistent, paying a total of S$0.75 per year in two tranches (S$0.25 interim and S$0.50 final) since 2020. At a share price of S$12.63, Venture's shares provide an attractive historical dividend yield of 5.9%. Venture has also purchased 1.7 million shares under its share buyback plan, out of a total authorised repurchase amount of 10 million shares. The board has approved the acceleration of this plan to buy back the remaining 8.3 million shares. The contract manufacturer is also implementing new business wins in design and manufacturing and targets for growth this year. Frasers Centrepoint Trust, or FCT, is a blue-chip retail REIT with a portfolio of nine suburban malls and an office building. The REIT has shown resilience in the face of tough times as interest rates surged and inflation hit highs back in 2022 and 2023. For its fiscal 2024 (FY2024) ending 30 September 2024, FCT reported a 4.9% year-on-year dip in gross revenue to S$351.7 million. Net property income came in 4.6% lower than the previous year at S$253.3 million. These declines were attributed to the sale of Changi City Point in October 2023 along with Tampines 1 Mall being impacted by asset enhancement works. Stripping these out, revenue and net property income would have increased by 3.5% and 3.4%, respectively. Distribution per unit for FY2024 slipped just 0.9% year on year to S$0.12042, giving the retail REIT's units a trailing distribution yield of 5.8%. For the latest quarter, FCT saw committed retail occupancy stay high at 99.5% while shopper traffic and tenant sales also saw year-on-year growth. These operating metrics attest to the strength of demand for its suburban mall portfolio. Singapore Technologies Engineering, or STE, is a technology and engineering group that serves customers in the aerospace, smart city, and defence sectors. The group provided an encouraging market update for the first nine months of 2024 (9M 2024) which saw revenue climb 14% year on year to S$8.3 billion. All three of its divisions recorded year-on-year revenue growth. A total of S$8.3 billion of new contracts was secured in 9M 2024, taking the order book to S$26.9 billion. Meanwhile, another S$4.3 billion of contracts was snagged by STE in 4Q 2024, which was nearly double the S$2.2 billion secured in 3Q 2024. The engineering giant has been paying quarterly dividends of S$0.04 each, with the annual dividend of S$0.16 being paid out since 2022. At a share price of S$5.06, STE's shares offer a trailing dividend yield of 3.2%. VICOM may not be a blue-chip stock, but the test and inspection specialist has a strong competitive edge. The group has a 72.9% market share of the vehicle inspection market and inspected a total of 525,108 vehicles last year. VICOM is also one of the authorised partners appointed by the Land Transport Authority to install onboard units in vehicles as part of the ERP 2.0 exercise. Thus far, 77,000 of such units have been installed. VICOM reported a commendable set of earnings for 2024 with revenue rising 6.8% year on year to S$119.5 million. Operating profit increased by 4.8% year on year to S$34.6 million while net profit improved by 6.1% year on year to S$29.3 million. The group also generated a positive free cash flow of S$23 million, 22% higher than a year ago. A S$0.03 final dividend was declared for 2024, up from S$0.0275 last year. For 2024, the total dividend stood at S$0.058, giving shares of VICOM a historical dividend yield of 4.4%. Which SGX companies will reach S$100 billion next? Our latest FREE report provides detailed financial analysis and growth prospects of 5 potential candidates. The results? Surprising. You'll want to grab a copy now and see whether what everyone else says is true. Click here to download now. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of VICOM. The post 4 Reliable Singapore Stocks That Are Perfectly Suited for Your CPF Investment Account appeared first on The Smart Investor.
