Singapore Dividend Season: Your Complete Guide to Upcoming Payouts
Ready to boost your passive income? April and May bring a shower of dividends from Singapore's top companies. Here's your actionable guide to capture these cash flows.
Singapore's dividend season is heating up, with over 30 companies set to reward shareholders in the coming weeks. As your friendly neighborhood investing iguana, I've analyzed the upcoming dividend landscape to help you make informed decisions about which dividend stocks might deserve a spot in your portfolio.
The Dividend Landscape: What's Coming Up
The next few weeks offer a feast for income investors. From banking giants to retail stalwarts, companies across various sectors are preparing to distribute cash to shareholders. Let's break down what's on the menu.
Banking & Finance Leaders
UOB leads the pack with an impressive S$1.42 per share dividend going ex-dividend on April 28, 2025. With a yield of 5.1%, UOB continues to be a cornerstone for income investors in Singapore. The payment hits bank accounts on May 13, giving investors a substantial cash injection.
Hong Leong Finance isn't far behind, offering a 5.5% yield with its upcoming S$0.10 dividend (ex-date: May 5, payment: May 22).
REITs Delivering Steady Income
REITs remain favorite income vehicles for many Singaporean investors, and for good reason:
Mapletree Logistics Trust offers a juicy 7.1% yield with its S$0.01955 distribution (ex-date: April 30)
Mapletree Pan Asia Commercial Trust follows with a 6.6% yield (ex-date: May 2)
Suntec REIT provides a solid 5.2% yield (ex-date: May 2)
Industrial & Manufacturing Dividends
Several industrial players are sharing profits with shareholders:
Venture Corporation stands out with a substantial S$0.50 per share dividend and 6.5% yield (ex-date: May 5)
Yangzijiang Shipbuilding offers a competitive 5.5% yield (ex-date: May 5)
UMS Holdings provides a generous 7.4% yield (ex-date: May 7)
Top Dividend Yields to Consider
If you're hunting for the highest yields, here are the standouts from the upcoming dividend calendar:
SBS Transit tops the list with an eye-catching 9.8% yield. While this yield seems extremely attractive, remember that unusually high yields sometimes signal potential concerns about sustainability. Always look beyond the yield number to understand the company's dividend history and payout ratio.
Dividend Capture Strategy: Is It Worth It?
Some investors use a "dividend capture" strategy – buying shares just before the ex-dividend date and selling shortly after. Let's examine if this approach makes sense in the current market.
How Dividend Capture Works:
Buy shares before the ex-dividend date
Hold through the ex-dividend date to qualify for the dividend
Sell shares after capturing the dividend
In theory, this sounds great – quick cash without long-term commitment. But there's a catch: share prices typically drop by approximately the dividend amount on the ex-dividend date. This means your capital gain/loss often offsets the dividend received.
Example with UOB:
Current price: ~S$28
Dividend: S$1.42
Expected price drop: ~5% on ex-dividend date
After accounting for trading costs and potential price movements, dividend capture often becomes a break-even strategy at best. It's generally more effective for investors with:
Very low trading costs
Favorable tax situations
Strong views on a stock's short-term price movement
For most retail investors, a buy-and-hold approach to quality dividend stocks usually produces better long-term results.
Building a Dividend Portfolio: Beyond the Ex-Dates
While it's tempting to chase the highest yields, building a sustainable dividend portfolio requires looking beyond just the upcoming payment dates. Here's a framework to evaluate these dividend opportunities:
Dividend Sustainability Factors:
Let's apply this framework to a few upcoming dividend payers:
UOB (United Overseas Bank)
Payout ratio: ~50% (sustainable)
Dividend history: Consistent with growth over time
Business model: Diversified banking with strong Singapore presence
Current challenges: Rising interest rates affecting loan growth
Verdict: Core holding for income investors
Mapletree Logistics Trust
Payout ratio: ~90% (typical for REITs)
Portfolio quality: Well-diversified across Asia
Occupancy rates: Consistently above 95%
Current challenges: Higher interest costs affecting distributions
Verdict: Solid for REIT allocation, watch interest rate trends
Sheng Siong
Payout ratio: ~70% (reasonable)
Business stability: Essential retail with proven recession resistance
Growth prospects: Steady expansion of store footprint
Verdict: Defensive income play with inflation protection
Sector Diversification for Dividend Investors
A well-constructed dividend portfolio should spread risk across different sectors. Here's how the upcoming dividend stocks break down by sector:
For a balanced approach, consider allocating across these sectors rather than concentrating in just the highest-yielding names.
Tax Considerations for Singapore Dividend Investors
One major advantage for Singapore investors: most dividends received from Singapore-listed companies are tax-free. This tax efficiency makes dividend investing particularly attractive compared to other income sources.
However, there are some nuances to be aware of:
REITs may have a small withholding tax component for certain investor types
Foreign-sourced dividends that pass through Singapore entities may have tax implications
Traders (vs. investors) may have different tax treatment
For most retail investors holding Singapore stocks for dividends, you'll enjoy tax-free income – a significant advantage over interest income or foreign dividends.
Action Plan: What Should You Do Now?
If you're looking to capitalize on this dividend season, here's a practical action plan:
Review your portfolio allocation – Are you overweight in any sector?
Check settlement times – Ensure you buy at least T+2 days before ex-date
Consider DRP options – Some companies offer dividend reinvestment plans
Look beyond the yield – Evaluate business fundamentals and sustainability
Set calendar alerts – Mark important ex-dividend dates for stocks you own or watch
For investors with cash ready to deploy, consider these timeframe-based approaches:
If you have 1 week:
Focus on UOB, Keppel, and StarHub with ex-dates coming up April 28-29.
If you have 2 weeks:
Consider the REITs (Mapletree Logistics, MPACT) and industrials going ex-dividend in early May.
If you have 1+ month:
Take time to build a diversified dividend portfolio across the full calendar.
Final Thoughts: Building Wealth Through Dividends
Dividend investing isn't just about collecting the next payment – it's about building a sustainable income stream that grows over time. The companies listed in our dividend calendar represent some of Singapore's most established businesses, many with decades of dividend-paying history.
While chasing yield can be tempting, the most successful dividend investors focus on total return – combining modest yield with dividend growth and capital appreciation. A 4% yield that grows 5% annually will outperform a static 7% yield over time.
As Singapore's interest rates potentially moderate in the coming year, quality dividend stocks may see renewed interest from income-seeking investors. Building positions in fundamentally sound businesses now could position you well for both income and potential capital gains.
Remember: dividends don't just represent cash in your pocket – they signal management's confidence in the business and commitment to shareholder returns. Companies that consistently pay and raise dividends tend to practice financial discipline that benefits investors over the long term.
Happy dividend hunting!