When investing in individual stocks, many of us in Singapore like to think about dividend stocks.
One of the big reasons is that dividends paid out by SGX-listed companies to shareholders are completely tax free.
So, you’re going to want that dividend income to come in as frequently as possible.
While the norm in the US stock market is for companies to pay their dividends for every quarter, in Singapore the default is for companies to pay out twice a year.
That’s not ideal if you want to reinvest and compound those dividends over time. However, there are some Singapore companies that pay quarterly dividends.
Here are three Singapore stocks that will pay you a dividend four times a year.
1. DBS Group
As Singapore’s largest bank, DBS Group Holdings Ltd (SGX: D05) is the only Singapore bank (among the Big Three) that pays out a quarterly dividend.
DBS shares currently yield 4.9% and it currently pays out a quarterly dividend per share (DPS) of 42 Singapore cents.
DBS typically makes these dividend payouts to shareholders in April, May, August, and November.
2. Singapore Exchange
Next up is Singapore Exchange Ltd (SGX: S68), better known as just “SGX”. It’s the sole stock market operator in Singapore.
It currently has a dividend yield of 3.3% and right now is paying out a quarterly DPS of 8 Singapore cents.
SGX normally makes these dividend payments to shareholders in February, May, October, and November.
3. ST Engineering
Finally, there’s Singapore Technologies Engineering Ltd (SGX: S63), more commonly known as ST Engineering.
The company is involved in the aerospace and defense industry in Singapore.
ST Engineering has a dividend yield of 4.3% and currently pays out a quarterly DPS of 4 Singapore cents.
The firm normally pays out these dividends to shareholders in May, June, September, and December.
Compound your Singapore dividends
There aren’t many Singapore stocks that pay out quarterly dividends but those are three that do.
These can help compound our dividends faster over time if we reinvest those quarterly dividends.
Just remember that we should all do our own due diligence as investors when buying individual stocks to ensure they meet our risk appetite.