Investing wisely is like finding a sweet spot between taking calculated risks and reaping the rewards. 

When it comes to the best dividend stocks in Singapore, 2024 has been a year of pleasant surprises – defying expectations amidst the uncertain economic climate. 

According to The Straits Times, dividends are expected to rise 17.8% for Singapore’s blue chip stocks this year. This is mostly boosted by the banking sector. 

Let’s explore 2024’s best dividend stocks in Singapore.

Table of Contents

• What to look out for in dividend stocks?
• 2024 Best Dividend Stocks in Singapore
  • DBS Group Holdings
  • United Overseas Bank Ltd
  • Oversea-Chinese Banking Corporation
  • Singapore Telecommunications
  • ST Engineering
  • Sheng Siong
• How to decide which dividend stock to buy
• How to invest in dividend stocks in Singapore?

What to look out for in dividend stocks?

Before we dive into Singapore’s top dividend stocks, let us briefly define what makes them the “best” in our opinion. We analyse factors such as dividend yield, payout ratio, and share price performance over the past 12 months.

• Dividend Yield is a percentage that indicates how much dividend is earned per dollar invested. While a higher yield is attractive, we also consider a company’s long-term profitability and consistent track record of dividend growth. Stable, profitable companies are more likely to weather economic storms and keep paying dividends.
• Payout Ratio shows how much of a company’s profits go to dividends. A low payout ratio suggests that the company has room to increase dividends in the future. To dig deeper, we also take into account the stock’s debt-to-equity ratio. A low debt-to-equity ratio shows that the company is financially healthy and can afford to pay dividends consistently.
• Share Price Performance is important because a stock’s price performance reflects how well the company is doing based on its overall health and growth potential. To assess a company’s long-term viability, we also analyse its profitability and debt levels.

2024 Best Dividend Stocks in Singapore

1. DBS Group Holdings (SGX:D05)

As the largest bank in Singapore and Southeast Asia, DBS Group Holdings is a linchpin of our financial landscape. 

DBS has significantly benefited from higher interest rates prior to the recent rate cuts, resulting in record-high profits in the first half of 2024. Among its various revenue streams, wealth management has been a standout performer. The bank’s wealth assets under management surged by 24% to a new high of S$396 billion, driving a remarkable 19.6% increase in wealth management fees to S$1.3 billion for the quarter.

In the latest update, DBS reported a profit rise of 6% to S$2.79 billion in 2024 Q2 earnings and declared a dividend of S$0.54 per share. This further emphasises its commitment to rewarding investors.

2. United Overseas Bank Ltd (SGX:U11)

Though smaller in scale, UOB has positioned itself as a significant player, especially after acquiring Citigroup’s consumer business for about S$5 billion in Malaysia, Thailand, Indonesia, and Vietnam. This doubles its retail customer base to over 7 million, making it one of the key players to watch in the coming future.

Despite global uncertainties, UOB’s Q2 2024 profit increased by 1% to S$1.43b, declaring an interim dividend of S$0.88 per share, an increase from the previous year’s S$0.85 per share.

Source: Syfe; UOB; The Straits Times. As of (published date).

3. Oversea-Chinese Banking Corporation (SGX:O39)

OCBC delivered a strong Q2 performance, outpacing its local banking peers with a 14% increase in net profit to S$1.9 billion.

OCBC’s strategic growth initiatives continue to bear fruit, with the successful acquisition of PT Bank Commonwealth Indonesia and an increased stake in Great Eastern Holdings in 2024. These developments solidify the bank’s position and position it for future growth.

OCBC reported a robust 14% surge in Q2 profits, reaching S$1.94 billion. Concurrently, the bank declared an interim dividend of S$0.44 per share.

4. Singapore Telecommunications (SGX:Z74)

As a telecommunications giant majority-owned by Singapore’s government, Singtel has maintained a stable dividend policy. 

The telco has big plans to deliver better customer experiences and sustained value realisation for shareholders, targetting a double-digit return on invested capital in the mid-term.

With a diverse investment portfolio across the region, Singtel reported a 42.9% increase in Q1 profit to S$690 million from S$483 million in the corresponding year-ago period. The company declared a final dividend of S$0.15 per share, providing shareholders with a reliable income stream.

5. ST Engineering (SGX:S63)

ST Engineering is a homegrown technology company that needs no introduction. The company achieved a H1 profit of S$336.5 million in 2024, an impressive 19.9% increase compared to the previous year. The main drivers of revenue are the Commercial Aerospace (CA) and the Defence & Public Security (DPS) segment which saw a 20% and 12% revenue increase respectively. Dividend yield stands at 4.4%, translating to a final dividend of S$0.04 per ordinary share.

6. Sheng Siong Group Ltd (SGX:OV8)

Sheng Siong Group Ltd is a home favourite supermarket chain that everyone is familiar with. The company achieved a H1 profit of S$69.9 million in 2024, a 7% increase compared to the previous year. The profit growth was mainly driven by a longer sales period prior to the Lunar New Year. Dividend yield stands at 4.05%, translating to a final dividend of S$0.06 per share.

How to Decide Which Dividend Stock to Buy (and Hold)?

2024 so far has promised exciting opportunities for investors in Singapore’s dividend stocks. Investing in dividend stocks requires finding a careful balance between stability and growth. You should consider your investment objectives based on payout and price return expectations and do a thorough research before investing. 

	Market Cap	Current Share Price	Trailing 12 Months Dividends Per Share	Trailing Dividend Yield
DBS	S$111.52B	S$39.20	S$2.16	5.09%
UOB	S$54.05B	S$32.30	S$1.76	5.35%
OCBC	S$68.37B	S$15.19	S$0.88	5.68%
Singtel	S$52.35B	S$3.17	S$0.11	3.53%
ST Engineering	S$14.50B	S$4.65	S$0.16	3.46%
Sheng Siong Group Ltd	S$2.39B	S$1.59	S$0.06	4.05%

How to invest in dividend stocks in Singapore?

Syfe has a brokerage offering in which you can access dividend stocks as well as other securities on SGX. Commission fees starting at S$1.98 or 0.045% of traded value. Alternatively, if you’re looking to buy into a basket of these four securities, STI ETFs can be an easy access option to access the broader Singapore market.

Ready to start investing? Explore an array of global and Singapore’s dividend stocks when you download the Syfe app here.