Top dividend stocks to watch in 2026
Dividend stocks complement REITs in Singapore portfolios, providing defensive income streams while diversifying across industries. Read on to find out which dividend stocks are worth considering in the year ahead.
Important to know
This article is intended for educational and informational purposes only and does not constitute any form of investment advice. Please ensure that you understand the risks and consider your specific investment objectives, financial situation or particular needs before making a commitment to trade.
Key takeaways
Singapore dividend stocks are expected to remain resilient in 2026, led by banks, industrials, and market infrastructure firms offering yields of 3% to 5%.
Selecting dividend stocks requires balancing yield with sustainability, focusing on payout ratios, sector strength, and dividend history.
You can trade dividend stocks on IG Singapore via CFDs, or invest in them via the IG Markets app.
What are dividend stocks?
Dividend stocks are shares of companies that distribute a portion of their profits to shareholders in the form of regular cash payments. These dividends are typically issued quarterly or annually, offering investors a steady stream of income alongside potential capital appreciation.
Unlike growth stocks, which reinvest earnings to fuel expansion, dividend stocks prioritise rewarding shareholders directly.
For investors and longer-view traders, dividend stocks can serve as both an income source and a stabiliser during market volatility. They are often associated with mature, financially sound companies in sectors such as banking, utilities, and consumer staples.
Globally, dividend-paying firms are viewed as reliable anchors in portfolios, especially for those seeking passive income.
► Singapore dividend stocks: what should traders and investors know?
In Singapore, dividend stocks are particularly attractive due to the city-state’s tax regime in which dividends are not taxed at the individual level. This makes them an efficient way to generate income, especially for retirees or long-term investors.
Singapore’s dividend landscape is shaped by its robust financial sector, diversified economy, and supportive government policies. In 2026, dividend stocks are benefiting from initiatives such as a S$5 billion investment programme designed to invigorate the local market. These measures aim to boost liquidity and attract institutional investors, indirectly strengthening dividend-paying companies.
For traders, dividend stocks present opportunities around ex-dividend dates, when share prices adjust to reflect payouts. Short-term strategies may involve capturing dividend yields while managing price volatility.
Investors, on the other hand, focus on sustainability — examining payout ratios, earnings resilience, and sectoral trends.
Singapore’s big banks — DBS, UOB, and OCBC — remain dividend stalwarts, supported by strong balance sheets and regional growth prospects. Meanwhile, industrial leaders like Venture Corporation and Singapore Exchange (SGX) provide diversification beyond finance.
As passive income strategies gain traction, dividend stocks remain a cornerstone of wealth-building in 2026, offering both stability and confidence in Singapore’s economic resilience.
Quick fact
Many Singapore dividend stocks, especially real estate investment trusts (REITs) and blue chips, have consistently delivered yields above 5%, making them highly attractive for income investors.
Why trade or invest in Singapore dividend stocks?
Dividend stocks could appeal to both traders and long-term investors because they offer a blend of income and capital growth.
For investors seeking stability, dividends may provide a steady stream of cash flow that can help offset market volatility. This income could be particularly useful for those planning retirement or aiming to supplement other earnings.
From a trading perspective, dividend stocks might present opportunities around ex-dividend dates, when share prices often adjust to reflect upcoming payouts. Traders could use these short-term movements to capture value, though such strategies may carry risks if market conditions shift unexpectedly.
Dividend-paying companies are often established businesses with consistent earnings, which could signal financial resilience. In Singapore, the tax-free nature of dividends at the individual level may further enhance their attractiveness compared to other forms of income.
However, yields can fluctuate depending on interest rates, sector performance, and broader economic conditions.
Ultimately, dividend stocks could serve as a useful component of a diversified portfolio. They may not guarantee high returns, but they could provide a measure of predictability and balance, making them a potential option for those looking to combine income generation with exposure to equity markets.
With IG Singapore, you can also access international dividend stocks alongside local ones, via CFD share trading, or direct ownership of shares via the IG Markets investing app.
Top dividend stocks to watch in Singapore
Company
|
Dividend yield*
|
Dividend payout ratio*
|
Available for CFD trading with IG?
|
Available for investing with IG Markets Singapore app?
|
|
3.8%
|
52%
|
✅
|
✅
|
Oversea-Chinese Banking Corporation (OCBC)
|
4.9%
|
48%
|
✅
|
✅
|
|
3.0%
|
45%
|
✅
|
✅
|
Singapore Technologies (ST) Engineering
|
5.9%
|
72%
|
✅
|
✅
|
Mapletree Logistics Tree (MLT)
|
5.3%
|
95%
|
✅
|
✅
|
*As of 16 January 2026
1. DBS Group Holdings (SGX: D05)
Industry: Banking and financial services
Market cap: S$168 billion
Latest earnings (Q3 2025): DBS reported net profit of S$2.95 billion, down 2% year-on-year (YoY) but above analyst expectations. Total income reached S$5.93 billion, up 3% YoY, supported by net interest income of S$3.6 billion.
Liquidity (Q3 2025): Liquidity remained ‘ample’, with a Liquidity Coverage Ratio (LCR) of 149% and a Net Stable Funding Ratio (NSFR) of 114%, both well above the regulatory minimum of 100%.
Dividend updates: DBS paid a total dividend of S$2.22 per share for FY2024, up 16% YoY. The last dividend of S$0.75 per share was distributed on 24 November 2025. Based on the last traded share price of S$59.12 on 16 January 2026, the dividend yield is approximately 3.8%. The payout ratio stood at 52%.
Share price performance (January 2026): DBS shares rose ~35% in 2025. The stock has a 52-week trading range of S$36.30 to S$59.25, with a price-to-earnings (P/E) ratio of 15.1 times and price-to-book (P/B) ratio of 2.4 times.
2. Oversea-Chinese Banking Corporation (SGX: O39)
Industry: Banking and insurance
Market cap: S$90 billion
Latest earnings (Q3 2025): OCBC reported net profit of S$1.98 billion, nearly flat YoY but up 9% quarter-on-quarter (QoQ). Total income rose to S$3.80 billion, supported by a 24% QoQ surge in non-interest income, while net interest income declined 2% QoQ.
Liquidity (Q3 2025): OCBC maintained ‘strong’ funding and liquidity positions, with a LCR of 141%. In terms of capital adequacy, CET1 ratio was 16.9% (transitional) and 15.0% (fully phased-in).
Dividend updates: OCBC paid a total dividend of S$1.01 per share for FY2024, up 23% YoY. The last dividend of S$0.41 per share was distributed on 21 August 2025. Based on the last traded share price of S$20.44 on 16 January 2026, the dividend yield is approximately 4.9%. The payout ratio stood at 48%.
Share price performance (January 2026): OCBC shares rose ~18% in 2025. The stock has a 52-week trading range of S$14.35 to S$20.54, with a P/E ratio of 12.7 times and P/B ratio of 1.5 times.
3. United Overseas Bank (SGX: U11)
Industry: Banking and financial services
Market cap: S$60 billion
Latest earnings (Q3 2025): UOB reported net profit of S$443 million, down 72% YoY from S$1.61 billion, as the bank set aside S$1.36 billion in allowances to strengthen coverage amid macroeconomic uncertainties. Operating profit before allowances was S$1.8 billion, down 16% YoY, while net interest income fell 8% to S$2.3 billion.
Liquidity (Q3 2025): UOB maintained a ‘strong’ liquidity position, with an all-currency LCR of 145% and a NSFR of 115%, both comfortably above regulatory requirements. CET1 ratio eased to 14.6%.
Dividend updates: UOB declared an interim dividend of S$0.85 per share and a special dividend of S$0.25 per share in August 2025, bringing FY2025 dividends to around S$1.10 per share. Based on the last traded share price of S$36.74 on 16 January 2026, the dividend yield is approximately 3.0%. The payout ratio stood at 45%.
Share price performance (January 2026): UOB shares have a 52-week trading range of S$29.00 to S$39.20, with a P/E ratio of 10.5 times and price-to-book (P/B) ratio of 1.25 times.
4. ST Engineering (SGX: S63)
Industry: Aerospace, defense, and engineering
Market cap: S$28 billion
Latest earnings: ST Engineering reported group revenue of S$9.1 billion for the first nine months of 2025 (9M2025), up 9% year-on-year (YoY). In Q3 2025 alone, revenue rose 13% YoY to S$3.1 billion, with Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom all posting higher sales.
Liquidity (Q3 2025): ST Engineering completed divestments of LeeBoy, CityCab, and SPTel, generating S$594 million in cash proceeds and after-tax gains of S$258 million.
Dividend updates: An interim dividend of 4.0 Singapore cents per share for Q3 2025 was paid on 5 December 2025. The company’s board also proposed a final dividend of 6.0 Singapore cents per share and a special dividend of 5.0 Singapore cents per share, subject to shareholder approval. If approved, total FY2025 dividends will amount to 23.0 Singapore cents per share. Based on ST Engineering’s last traded share price of S$3.92, this represents a dividend yield of ~5.9%. The proposed payout ratio is approximately 72%,
Share price performance: Shares surged over 80% in 2025, outperforming the Straits Times Index (+23%). Valuation stood at a P/E ratio of 37.0 times and P/B ratio of 10.0 times.
5. Mapletree Logistics Trust (SGX: M44U)
Industry: Real estate investment trust (logistics and industrial properties)
Market cap: S$7 billion
Latest earnings (Q2 FY2025/26): MLT reported gross revenue of S$177.5 million, down 3.2% year-on-year (YoY), while net property income (NPI) fell 3.3% YoY to S$153.3 million. The decline was mainly due to foreign exchange headwinds and the loss of income from divested properties, partially offset by contributions from new acquisitions and redevelopment projects in Singapore.
Liquidity: As at 30 September 2025, MLT’s aggregate leverage stood at 41.1%, with total debt outstanding at S$5.52 billion.
Dividend updates: MLT declared a DPU of 1.815 Singapore cents for Q2 FY2025/26. For the first half of FY2025/26, total DPU amounted to 3.627 Singapore cents, down 11.4% YoY. Based on MLT’s last traded share price of S$1.36, this represents a dividend yield of ~5.3%. The payout ratio stood at approximately 95%.
Share price performance (January 2026): Mapletree Logistics Trust share price rallied ~7% in 2025. The stock has a 52-week trading range of S$1.03 to S$1.37, with a P/E ratio of 32.0 times and a P/B ratio of 1.0 times.
How to trade and invest in dividend stocks with IG Singapore
CFD share trading
- Create a live or demo account
- Find an opportunity among one of our 10,000+ stocks with our stock screener
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
Investing
- Open an account via IG Markets Singapore app
- Search for dividend stocks on the app
- Choose the shares you want to buy
- Determine how many shares you want to purchase
- Place your order
- Monitor your investment and collect any dividends
FAQs about dividend stocks
Are dividend stocks risky?
Dividend stocks may be less volatile than growth stocks, but risks still exist. Companies could reduce or suspend dividends if earnings weaken, or if sector conditions change. Share prices may also decline if investors shift towards other asset classes during periods of rising interest rates.
How do I choose dividend stocks?
Look for companies with:
- Consistent dividend history over several years
- Sustainable payout ratios (ideally 40–60%)
- Strong balance sheets and cash flow generation
- Defensive positions in industries such as banking, utilities, or consumer staples
Dividend stocks vs REITs – what’s the difference?
Dividend stocks are companies that pay shareholders from profits, while REITs are mandated to distribute most of their income from property holdings. Dividend stocks may offer more sector diversification, while REITs often provide higher yields tied to real estate performance.
Do dividend stocks always pay high yields?
Not necessarily. Some dividend stocks pay modest yields but focus on long-term sustainability. Others may offer higher yields but face risks if payout ratios are stretched. Investors often balance yield with stability when building dividend portfolios.
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