Exploring Best Dividend Stocks in Singapore [2025 Guide]

In the heart of Singapore's vibrant financial scene, dividend stocks remain a reliable cornerstone for investors seeking both passive income and financial growth. The year 2025 presents fresh opportunities, especially as companies continue to prioritize stable dividend payouts despite economic headwinds and elevated interest rates.

Notably, the Singaporean government has introduced a 20% corporate income tax rebate for new primary listings and established a S$5 billion ($3.7 billion) investment program to invigorate the stock market. These initiatives aim to counter the lack of major listings and decreased trading liquidity, potentially enhancing the attractiveness of dividend stocks.

Understanding the intricacies of dividend investing is crucial, from selecting the highest-yielding stocks to navigating the market's fluctuations. Here, we'll dissect the key players across various sectors, providing a streamlined analysis that equips you with the knowledge to enhance your portfolio's resilience and profitability. With economic growth stabilizing—evidenced by Singapore's 4.4% GDP expansion in 2024—and interest rates expected to remain elevated, dividend-paying companies with strong fundamentals stand out as resilient investment options.

The Ministry of Trade and Industry (MTI) has maintained the GDP growth forecast for 2025 at 1.0% to 3.0%, reflecting cautious optimism amid global uncertainties. Embark on this journey to financial wisdom, where dividends are not just a strategy but a pathway to achieving fiscal stability and success.

How to pick the best dividend stocks

Selecting the best dividend stocks is a nuanced process that involves more than just eyeing the highest yields. It's about understanding and evaluating a set of key financial indicators and market trends that point towards a company's ability to maintain and potentially increase its dividend payouts over time. Here's a streamlined guide to help you navigate through the process of picking the most promising dividend stocks in Singapore.

Understanding key metrics

• Dividend Yield: This is the dividend per share divided by the stock's price per share, expressed as a percentage. While a high yield is attractive, it's essential to balance this with the company's ability to sustain such payouts in the long term. Look for stocks with a solid history of dividend growth, which often indicates stable profitability and a commitment to returning value to shareholders.
• Payout Ratio: This metric shows the proportion of earnings paid out as dividends to shareholders. A lower payout ratio may suggest that a company has ample room to grow its dividends. However, it's also crucial to consider the company's debt-to-equity ratio; a lower figure here indicates financial health and a sustainable dividend policy.
• Share Price Performance: Over the past 12 months, the stock's price performance can give insights into the company's current market standing and growth potential. Alongside, analyzing long-term profitability and debt levels helps assess the firm's viability and stability.

Dividend investing challenges

It's crucial to remember that dividends are not guaranteed; a company's financial health can change, impacting its ability to distribute dividends. High yields can be enticing, but they require a deeper dive into the company's fundamentals to ensure consistency. The pandemic has shown that even strong companies can face unprecedented challenges that affect dividend payouts.

Strategic selection tips

• Historical Dividend Performance: Prioritise companies with a history of maintaining or increasing dividends. This consistency is a positive sign of financial health and shareholder value.
• Financial Health: Utilise financial data platforms to review essential metrics like long-term profitability and the debt-to-equity ratio. A strong financial foundation is key to sustainable dividend payments.
• Dividend Dates and Yield: Familiarise yourself with the ex-dividend date to ensure eligibility for dividends and consider the dividend yield for its current attractiveness.
• Economic and Industry Trends: Economic resilience and growth potential in a company's industry are vital. Consider broader economic conditions, government policies, and sector-specific trends to make informed choices.

By weaving together these insights, investors can better position themselves to select dividend stocks that not only offer attractive yields but also stand on a solid foundation of financial health and industry strength. Diving deep into these aspects will equip you with the tools to build a resilient and profitable dividend investment portfolio in Singapore.

Best dividend stocks in Singapore in 2025

When exploring the best dividend stocks in Singapore for 2025, it's essential to consider a variety of factors such as dividend yield, company performance, and industry trends.

Source: Companies' annual reports and latest financial statements.

DBS Group Holdings Ltd. (D05)

DBS Group Holdings Ltd. is a premier multinational banking and financial services corporation based in Singapore, serving as a cornerstone in the financial landscape of Southeast Asia. Known for its forward-thinking approach and emphasis on innovation, DBS continues to lead digital transformation efforts, enhancing banking services across the region.

In 2024, the bank reported a record net profit of S$11.4 billion, a 12% increase from 2023, driven by strong net interest income and healthy loan growth. DBS also declared total dividends of S$2.22 per share, up 27% year-on-year, translating to a 4.9% dividend yield, reflecting its strong capital position and commitment to shareholder returns. Additionally, the bank's successful integration of Citigroup’s Taiwan consumer banking business further strengthens its regional footprint and growth outlook.

United Overseas Bank Ltd (U11.SI)

United Overseas Bank Ltd (UOB) stands as a testament to enduring strength and stability in Singapore's banking sector. With an extensive network spanning across Asia, UOB has played a pivotal role in supporting regional businesses and economies. In 2024, UOB reported a record net profit of S$6 billion, a 6% increase from the previous year, driven by strong growth in fee, trading, and investment income.

The bank declared a final dividend of 92 cents per share for 2024, up from 85 cents in 2023, bringing the total annual dividend to S$1.80 per share. Additionally, UOB announced a S$3 billion capital return package, including a special dividend of 50 cents per share and a S$2 billion share buyback program, reflecting its robust financial position and commitment to enhancing shareholder value.

OCBC (O39.SI)

Oversea-Chinese Banking Corporation (OCBC) stands as a pillar in Singapore's banking sector, with a robust presence extending into key Asian markets like China, Indonesia, and Malaysia. The bank's strategy, deeply rooted in sustainability and innovation, has propelled its expansion and solidified its market position. 

With a notable financial performance, including achieving S$7.02 billion in profits in 2023, OCBC has demonstrated its financial resilience and commitment to growth. The bank's focus on digital transformation is set to enhance customer experience and operational efficiency further. This approach, backed by strong financial fundamentals, makes OCBC a compelling prospect for investors looking for growth and reliability in their investment portfolio.

Singapore Telecommunications Limited (Singtel) (Z74.SI)

Singapore Telecommunications Limited (Singtel) remains a leader in the Asia-Pacific telecommunications sector, leveraging its diversified portfolio across mobile, internet, and digital services. In 2024, Singtel reported an underlying net profit of S$2.26 billion, a 10% increase from 2023, driven by strong contributions from Bharti Airtel and Telkomsel. The company declared a total dividend of 15 cents per share, comprising an 11.2-cent ordinary dividend and a 3.8-cent value realisation dividend, reflecting a 51.5% increase year-on-year.

Singtel’s Singtel28 strategy, launched in 2024, focuses on advancing digital infrastructure and services, including 5G expansion, AI-driven solutions, and cloud platforms. The company also secured a S$643 million green loan for a sustainable data center in Tuas, set for completion by 2026, underscoring its commitment to innovation and sustainability.

Singapore Exchange Limited (SGX) (S68.SI)

The Singapore Exchange Limited (SGX) remains central to Asia's financial markets, offering multi-asset trading, clearing, and settlement services. In FY2024, SGX reported a net profit of S$526 million, up from S$503 million in FY2023, with revenue reaching S$1.23 billion. The company declared a total dividend of 34.5 cents per share, including a 9-cent final quarterly dividend, reflecting its commitment to shareholder returns. 

Despite a decline in listed companies, SGX saw its highest-ever half-year profit in early 2025, driven by strong cash equity and derivatives performance. It remains optimistic about a stronger IPO pipeline and market revitalization efforts led by the Monetary Authority of Singapore.

CapitaLand Investment Limited (9CI.SI)

CapitaLand Investment Limited stands out as one of Asia's leading real estate conglomerates, with its headquarters in Singapore. The company boasts an impressive and diverse global portfolio, encompassing a variety of sectors including residential, commercial, business parks, industrial, and logistics properties. Central to CapitaLand's growth strategy is its focus on asset recycling and management, aimed at creating value across its vast portfolio. 

In 2023, CapitaLand reported significant earnings, with profits amounting to S$781 million, highlighting its robust financial health and operational success. CapitaLand’s dedication to innovation and sustainability, paired with its expansive footprint in burgeoning markets, positions it as an attractive investment option for those seeking exposure to the real estate sector, promising both reliability and growth.

Keppel Corporation Limited (BN4.SI)

Keppel Corporation Limited, a diversified global asset manager and operator, has demonstrated resilience through its operations in infrastructure, real estate, and connectivity. In FY2024, Keppel reported a net profit of S$1.06 billion from continuing operations, a 5% increase from the previous year. Notably, 72% of this net profit, amounting to S$766 million, was derived from recurring income sources, underscoring the stability of its earnings. The company declared a total cash dividend of 34 cents per share for FY2024, reflecting its commitment to shareholder returns.

In line with its strategic focus on asset management, Keppel's Funds Under Management (FUM) grew by 60% year-on-year, reaching S$88 billion by the end of 2024. The infrastructure segment remained a significant contributor, accounting for 63% of the company's net profit. Additionally, Keppel announced plans to develop two new subsea cable systems, enhancing connectivity between Singapore and other Asian markets. These initiatives align with Keppel's vision to provide sustainable urbanization solutions and strengthen its position in high-growth sectors.

ST Engineering (S63.SI)

ST Engineering, a global leader in technology, defense, and engineering, continues to demonstrate robust growth and innovation. In 1H2024, the company reported a net profit of S$348.2 million, a 22% increase from the previous year, with revenue rising 13.5% to S$5.52 billion. This growth was driven by strong performances in the aerospace and defense sectors. The company maintained its commitment to shareholders by declaring an interim dividend of 4 cents per share. 

In Q4 2024, ST Engineering secured approximately S$4.3 billion in new contracts, including S$1.8 billion in Commercial Aerospace and S$1.7 billion in Defense & Public Security. The company also inaugurated a 14-hectare smart shipyard at Gul Road to enhance ship repair and conversion capabilities. These developments reinforce ST Engineering’s position as a key player in the global technology and engineering sectors.

Great Eastern (G07.SI)

Great Eastern Holdings Ltd., Singapore's leading life insurer and a subsidiary of OCBC Bank, has been a trusted provider of insurance and financial solutions for over a century. It reported a net profit of S$860.5 million for the first nine months of 2024, reflecting a 39% increase from the same period in 2023, driven by strong investment performance and higher insurance operating profit. Total Weighted New Sales rose 19% to S$1.36 billion, while New Business Embedded Value increased 13% to S$515.8 million. The company declared an interim dividend of 35 cents per share, maintaining its focus on shareholder returns. 

In addition, Great Eastern strengthened its leadership with the appointment of Greg Hingston as Group CEO, effective 1 November 2024, succeeding Khor Hock Seng. The company also announced strategic plans to expand its digital capabilities and enhance customer offerings, ensuring continued growth amid evolving market conditions.

Haw Par (H02.SI)

Haw Par Corporation Ltd., the esteemed company behind the iconic Tiger Balm, demonstrated remarkable financial performance in FY23, with its profits soaring by 46% year-on-year to $216.6 million. This financial uptick, as reported in a recent bourse filing by the company, is a testament to the robust demand and continued relevance of its healthcare products in the market. 

Haw Par operates across diverse sectors, including healthcare, where it produces and markets the globally recognised Tiger Balm and Kwan Loong analgesic products. Additionally, the company has interests in leisure, offering family and tourist-oriented leisure options such as oceanariums. 

It also owns and manages a portfolio of investment properties across Asia, further diversifying its income sources. Beyond real estate and consumer healthcare products, Haw Par engages in strategic investment activities, holding both quoted and unquoted securities across the Asia region. This multifaceted operational approach underscores Haw Par's dynamic business strategy and its ability to generate stable revenue streams across various sectors, positioning it for continued growth and success.

Deciding best dividend stocks based on past performance (Trailing annual dividend yield)

Source: morningstar.com

How to invest in dividend stocks in Singapore

Here's a comprehensive guide on how to embark on this investment journey:

• Select a Broker: Your first step is to choose a reputable brokerage firm. Look for brokers that offer competitive fees, user-friendly trading platforms, and access to a broad array of dividend stocks listed on the Singapore Exchange (SGX). Read our best online brokerage comprehensive guide to find out more.
• Open and Fund your Account: Two key components in this process are setting up a brokerage account and a Central Depository (CDP) account. But of course, you can also opt for a custodian account in which you don’t need to apply for a CDP account.
• Research Companies: Before diving into stock purchases, take the time to research potential companies. Look into their financial health, market position, and prospects for growth. Utilizing both technical and fundamental analysis from Morningstar and Yahoo Finance can provide a comprehensive view of a stock's potential. Assessing factors like market cap, price movements, revenue, profit, dividend yield, and the company's track record of dividend payments can also offer insights into the sustainability of its dividends.
• Select and Buy Stocks: With your research in hand, select the stocks that meet your investment criteria. Consider the financial stability of the companies, their dividend history, and how they fit into current industry trends. When you're ready to buy, place your orders through your brokerage platform, specifying the stock symbol, the number of shares you wish to purchase, and the type of order you're placing (e.g., market or limit order).
• Timing and Averaging: Effective timing can enhance your investment returns. Stay informed about market trends to identify opportune moments to buy. Additionally, consider employing a dollar-cost averaging strategy by investing a fixed amount regularly. This approach helps mitigate the impact of volatility, potentially smoothing out your investment returns over time.

Investing in dividend stocks requires a mix of strategic planning, ongoing research, and continuous monitoring of your investments and the broader market. By following these steps and staying committed to your investment goals, you can build a robust dividend stock portfolio that provides both income and growth potential.

Low-risk alternative to dividend stocks: StashAway Simple™ Plus

In the pursuit of stable returns, dividend stocks are a popular choice among investors in Singapore. However, for those seeking a lower-risk alternative with competitive yields, StashAway Simple™ Plus offers an attractive option. This cash management portfolio boasts a yield to maturity of 3.6%, structured around a robust selection of short and ultra-short duration bond funds, including the LionGlobal SGD Enhanced Liquidity Fund, Nikko AM Shenton Short Term Bond Fund, and LionGlobal Short Duration Bond Fund.

Unlike dividend stocks, which can exhibit price volatility and variability in payout, Simple Plus provides a more predictable and stable investment return. It is designed to minimise risk through a careful blend of bond funds that offer high-quality, short-term investment opportunities. With a recommended holding period of at least 12 months, investors can expect to see maturity of the bonds align closely with their initial yield predictions, despite potential short-term market fluctuations.

Additionally, the management fee for Simple Plus is modest at 0.2% per annum, which is embedded in the yield, ensuring no additional costs impact the investor’s return. For those looking to diversify their investment approach away from the fluctuations of the stock market while still aiming for solid returns, StashAway Simple™ Plus presents itself as a compelling, low-risk financial tool.