Dividends can be said to be the gift that keeps giving.

There is no better feeling than receiving a dividend that goes straight into your bank account.

That said, income investors need to select stocks that pay out dependable dividends.

This is especially so if you intend to rely on these businesses to supply you with a steady stream of dividends when you retire.

Here are three Singapore stocks with attractive attributes that should ensure you receive a reliable stream of passive income.

Haw Par Corporation (SGX: H02)

Haw Par is a conglomerate with four distinct divisions – healthcare, leisure, property, and investments.

The group’s healthcare division is the main revenue generator and is represented by the famous Tiger Balm brand of salves and ointments.

For 2023, Haw Par pulled off a commendable financial performance as its Healthcare division saw a recovery as more sporting activities resumed around the world.

Revenue climbed 27.4% year on year to S$232.1 million.

The Healthcare division made up 92% of the group’s revenue at S$213.5 million for 2023, a 30% year-on-year increase from S$164 million a year ago.

Segment profit shot up 63.1% year on year to S$64.8 million.

Net profit for Haw Par rose 46% year on year to S$216.6 million.

The conglomerate has an excellent track record of free cash flow generation.

For 2023, Haw Par generated a positive free cash flow of S$54.9 million, more than double the S$21.2 million that was churned out in the prior year.

The group’s cash flow is also aided by the receipt of dividends from its investments in United Overseas Bank (SGX: U11) and UOL Group (SGX: U14).

For 2023, Haw Par received a dividend income of S$136.2 million, higher than the S$103.6 million received a year ago.

The conglomerate raised its annual dividend from S$0.30 to S$0.40 in 2023 and has been paying out dividends consistently since at least 2010.

Back then, the annual dividend was just S$0.20 per share but the group also paid out a special S$0.85 dividend to celebrate its 80^th anniversary back in 2018.

Haw Par’s consistent free cash flow generation and the strength of the Tiger Balm brand should enable the group to keep paying out increasing dividends over time.

Sheng Siong (SGX: OV8)

Sheng Siong is a supermarket operator with a chain of 70 outlets around Singapore.

The group sells a wide assortment of products including live and chilled produce (seafood, meat and vegetables) as well as daily necessities, general merchandise, and toiletries.

Sheng Siong is a major player in Singapore’s retail scene and its supermarkets are located in heartland areas which see healthy shopper traffic.

The group reported a respectable set of earnings for 2023 with revenue inching up 2.1% year on year to S$1.37 billion.

Operating profit, however, dipped slightly by 4.2% year on year to S$155.4 million.

Sharply higher finance income helped the retailer to eke out a tiny 0.3% year on year increase in net profit to S$133.7 million.

Sheng Siong also generated a positive free cash flow of S$166.9 million, 5.6% higher than the S$158 million churned out last year.

The group declared a final dividend of S$0.032 for 2023, taking the total dividend for the year to S$0.0625, slightly higher than the previous year’s S$0.0622.

The positive momentum has carried forward to the first quarter of 2024 (1Q 2024).

Sheng Siong’s revenue grew 5.5% year on year to S$376.2 million while its operating profit improved by 8.3% year on year to S$42.1 million.

Net profit increased by nearly 9% year on year to S$36.3 million.

The supermarket operator’s free cash flow soared 148.6% year on year to S$34.5 million.

With Sheng Siong’s consistent store expansion and reliable free cash flow generation, the group is a great candidate for providing dependable retirement income.

ComfortDelGro Corporation (SGX: C52)

ComfortDelGro Corporation, or CDG, is one of the largest land transport operators in the world with a presence in 12 countries.

The group operates a fleet of 34,000 buses, taxis and rental vehicles along with 210 km of rail network in operation or under development.

For 2023, CDG saw revenue edge up 2.6% year on year to S$3.9 billion.

Total operating costs increased by 2.8% year on year, resulting in operating profit inching up just 0.8% year on year to S$272.1 million.

Net profit increased by 4.3% year on year to S$180.5 million.

Free cash flow came in at S$70.6 million, though this was significantly lower than the S$297.7 million generated in the previous year.

CDG’s 2023 core dividend was 44.5% higher than 2022 at S$0.066 compared with S$0.0461 in the prior year.

Investors should note that 2022 included a special dividend of S$0.0387.

CDG has continued its positive financial streak with its 1Q 2024 earnings.

Revenue rose 10.8% year on year to S$1 billion because of higher contributions from the public and private transport divisions.

Net profit leapt 23.8% year on year to S$40.6 million.

CDG is continuing with its acquisitions with the purchase of UK-based CMAC Group, a ground transport management specialist, for £80.2 million back in February 2024.

With the group’s clout and scale, income investors can rest assured that CDG can continue paying out sustainable dividends.

We’ve discovered 5 SGX stocks that not only offer better returns than fixed deposits but also have the potential to beat inflation. Plus, these stocks provide capital growth and can significantly compound your wealth in the long term. If you’re looking to make your money work harder for you, download our FREE report for details on these five stocks.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

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