Top 5 Singapore Dividend Stocks In 2023

Singapore has long been considered one of the most attractive financial hubs in the world, with a strong economy and a favorable business environment. One of the most compelling reasons for investors to consider investing in Singapore is the potential for high dividend yields. Many publicly-traded companies in Singapore offer generous payouts, making them attractive to investors seeking steady income.

Why Invest in Dividend Stocks?

Investing in dividend stocks can be a smart strategy for investors looking for steady income and long-term growth. It provides investors with regular income streams, which can help supplement their overall returns. In addition, dividend-paying companies tend to be more stable and less volatile than non-dividend paying companies, as they typically have strong financials and consistent cash flows.

Moreover, dividend stocks offer investors the potential for long-term growth, as companies that pay consistent dividends tend to be well-established and profitable businesses that are likely to continue performing well over time. By investing in dividend stocks, investors can benefit from the power of compounding, as they can reinvest their dividends to purchase additional shares, which can generate even more income over time.

In this article, we will take a closer look at the top 5 dividend stocks in Singapore that investors should watch in 2023.

1. DBS Group Holdings Ltd (SGX: D05)

DBS Group Holdings Ltd is a leading financial services provider in Asia, offering a broad range of banking and financial services to clients across the region. With a market capitalization of over SGD 100 billion, DBS is one of the largest companies in Singapore and a key player in the global financial industry.

DBS has a solid track record of paying steady dividends to its shareholders, and has consistently increased its payout over the years. In 2022, the company announced a payout of SGD 1.20 per share, which represents a yield of 4.2% based on its current stock price. With its strong financials and solid market position, DBS is a quality stock to watch in Singapore in 2023.

2. Singapore Telecommunications Limited (SGX: Z74)

Singapore Telecommunications Limited, commonly known as Singtel, is the largest telecommunications provider in Singapore and a leading player in the region. Singtel offers a range of services, including mobile, fixed-line, and broadband services, and has a strong market position in the highly competitive telecommunications industry.

Singtel has a track record of paying consistent and increasing dividends to its shareholders, and in 2022, the company announced a payout of SGD 0.095 per share, which translates to a yield of 5.1% based on its current stock price. With its strong earnings and stable business, Singtel is one of the stocks to watch in Singapore in 2023.

3. Mapletree Industrial Trust (SGX: ME8U)

Mapletree Industrial Trust is a real estate investment trust (REIT) that owns a portfolio of industrial properties in Singapore. The trust has a diverse portfolio of properties, including high-tech manufacturing, data centers, and business parks, and has a solid track record of growth and consistent dividends.

In 2022, Mapletree Industrial Trust announced a distribution per unit (DPU) of SGD 0.130, which translates to a yield of 5.0% based on its current stock price. With the continued growth in demand for industrial properties in Singapore, Mapletree Industrial Trust is a top REIT to watch in 2023.

4. United Overseas Bank Ltd (SGX: U11)

United Overseas Bank Ltd is one of the largest banks in Singapore, offering a range of banking and financial services to clients across the region. With a market capitalization of over SGD 40 billion, UOB is a key player in the Singaporean banking industry and a well-established institution with a solid reputation.

The bank has a long history of paying consistent dividends to its shareholders, and in 2022, it announced a payout of SGD 1.30 per share, which represents a yield of 4.5% based on its current stock price.

5. Keppel DC REIT (SGX: AJBU )

Keppel DC REIT is a real estate investment trust that focuses on data center properties in Asia Pacific and Europe. The trust has a diverse portfolio of properties, including data centers in Singapore, Australia, and Europe, and has consistently delivered strong growth and dividends to its shareholders.

In 2022, Keppel DC REIT announced a distribution per unit of SGD 0.098, which translates to a yield of 3.8% based on its current stock price. With the increasing demand for data centers and the growth of the digital economy, Keppel DC REIT is a top quality stock to watch in Singapore in 2023.

Summary

Singapore offers a wealth of investment opportunities for investors seeking high yields and long-term growth. The five stocks discussed in this article are among the top companies to watch in Singapore in 2023, as they have solid track records of consistent dividends, strong financials, and stable businesses. Investors can benefit from the potential for steady income and long-term growth, while minimizing their risk and volatility.