4 Singapore Dividend Stocks That Outperform Inflation

Core Viewpoint - Inflation is eroding purchasing power, making dividend stocks that grow payouts faster than inflation essential for investors in Singapore to preserve and enhance their purchasing power [1][16]. Group 1: Dividend Stocks Overview - Four Singapore dividend stocks identified as capable of outpacing inflation include Singapore Exchange (SGX), Parkway Life REIT, CapitaLand Integrated Commercial Trust (CICT), and Haw Par Corporation [2][16]. Group 2: Singapore Exchange (SGX) - SGX operates as a multi-asset exchange providing listing, trading, and clearing services across various markets, benefiting from a monopoly position in Singapore [3]. - SGX has consistently increased its dividend payout, with a five-year compound annual growth rate (CAGR) of 4%, from S$0.32 in FY2021 to S$0.375 in FY2025 [4]. - The dividend payout ratio has remained sustainable, ranging from 60.8% to 76.9%, supported by an 8.4% year-on-year growth in net profit from S$598 million to S$648 million in FY2025 [4]. - At a share price of S$16.82, SGX offers a dividend yield of 2.2% [5]. Group 3: Parkway Life REIT - Parkway Life REIT focuses on a diversified portfolio of healthcare and nursing home properties across multiple countries, delivering uninterrupted distribution per unit (DPU) growth since its 2007 listing [6]. - DPU has increased from S$0.0632 at IPO to S$0.1492 in FY2024, representing a 136% increase [6]. - For YTD 3Q2025, PLife REIT reported a DPU of S$0.1156, up 2.3% year-on-year [7]. - The portfolio's weighted average lease expiry (WALE) is 14.68 years, with a healthy gearing ratio of 35.8% [8]. - At a price of S$4.05, PLife REIT has a dividend yield of 3.7% [9]. Group 4: CapitaLand Integrated Commercial Trust (CICT) - CICT is Singapore's largest retail and commercial REIT, with a portfolio that includes retail malls and office towers, allowing for upward rent repricing [10]. - The portfolio occupancy rate is 96.3%, with retail and commercial occupancy rates at 98.6% and 94.6%, respectively [11]. - CICT's DPU has shown stability and growth, increasing from S$0.1058 in FY2022 to S$0.1088 in FY2024 [11]. - At S$2.32, CICT offers a dividend yield of 4.8% [12]. Group 5: Haw Par Corporation - Haw Par operates in healthcare, leisure, property, and investments, known for its Tiger Balm brand, generating stable recurring dividend income [13]. - From FY2020 to FY2024, the dividend per share increased from S$0.30 to S$1.40, with a sustainable payout ratio between 38.8% and 60.2% [14]. - In the latest financial year, 73% of earnings came from investments, with a dividend yield of 2.6% at a share price of S$15.49, excluding a special dividend [15]. Group 6: Investment Implications - With Singapore's inflation projected at 0.5% to 1.5% for 2025, these dividend growers provide meaningful real returns above inflation, making them essential for protecting purchasing power [16]. - Focusing on dividend growth rather than just yield is crucial for long-term inflation protection [17].