Top dividend stocks to watch in 2026

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.

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

_{*As of 31 March 2026}

1. DBS Group Holdings (SGX: D05)

Industry: Banking and financial services
Market cap: S$163.0 billion (March 2026)

DBS financial results (FY2025): 

• Profit before tax: S$13.1 billion (+1.0% YoY)
• Net profit: S$11.0 billion (-3.0% YoY)
• Return on equity (ROE): 16.2% (down from 18.0% in FY2024)
• Net interest income (NII): S$14.5 billion (+1.0% YoY) 
• Net interest margin (NIM): 2.01% (down 12 basis points YoY) 

Dividend payout (FY2025):

• The total dividend for FY2025 amounted to S$3.06 per share, comprising ordinary dividends of S$2.46 per share and capital returns of S$0.60. 
• For Q4 2025, the board recommended a final ordinary dividend of S$0.66 and approved a capital‑return dividend of S$0.15.

Capital and liquidity metrics: Management noted that ratios remained ‘comfortably above’ regulatory thresholds.

• Liquidity coverage ratio (LCR): 155%.
• Net stable funding ratio (NSFR): 117%
• Leverage ratio: 6.2%. 
• Fully phased-in CET1 ratio: 15.0% (down from 15.1% in FY2024).
• Common Tier-1 CET1 ratio: 17.0% (even YoY)

Trading information (31 March 2026): 

• 50-day moving average share price: S$57.39
• 200-day moving average share price: S$53.14
• Average daily trading volume (three-month): ~5.3 million shares

Analyst stock ratings and share price targets: As of 31 March 2026, 47% of analysts polled by FactSet rated DBS a ‘buy’, 35% a ‘hold’, and 18% a ‘sell’. The consensus 12‑month target price was S$60.10 per share, suggesting a potential upside of 5.6%.

2. Oversea-Chinese Banking Corporation (SGX: O39)

Industry: Banking and insurance
Market cap: S$98.6 billion

OCBC financial results (FY2025):

• Profit before tax: S$9.12 billion (+2% YoY).
• Net profit: S$7.42 billion (‑2% YoY).
• ROE: 12.6% (down from 13.7% in FY2024).
• NII: S$9.15 billion (‑6% YoY).
• NIM: 1.91% (down 29 bps YoY).

Dividend payout:

• For FY2025, total dividends amounted to S$0.99 per share, comprising an interim ordinary dividend of S$0.41, a final ordinary dividend of S$0.42, and a special dividend of S$0.16.
• This equates to a 60% overall payout ratio, with ordinary dividends representing 50%.

Capital and liquidity metrics:

• Transitional CET1 CAR: 16.9% (down from 17.1% in December 2024).
• Fully phased‑in CET1: 15.1% (down from 15.3% in December 2024).
• Leverage ratio: 7.1% (December 2025).
• All‑currency LCR (Q4 2025): 138%.
• NSFR: 114%.

Trading information (31 March 2026):

• 50-day moving average share price: S$21.15
• 200-day moving average share price: S$18.46
• Average daily trading volume (three-month): ~5.6 million shares

Analyst stock ratings and share price targets: As of 31 March 2026, FactSet data (published on the IG Markets mobile app) showed 56% of analysts rating OCBC a ‘buy’. The consensus 12‑month target price was S$22.27 per share, pointing to a potential upside of 3%.

3. United Overseas Bank (SGX: U11)
 

Industry: Banking and financial services
Market cap: S$60.1 billion

 UOB financial results (FY2025):

• Operating profit: S$7.7 billion (+4.0% YoY).
• Net profit: S$4.7 billion (‑23% YoY), mainly due to the group’s decision to set aside pre‑emptive general allowances of about S$2.0 billion in Q3 2025.
• NII: S$9.4 billion (‑3% YoY)
• NIM: 1.89% (‑14 bps YoY).
• Net fee income: S$2.6 billion (+7% YoY), a record driven by wealth management and loan‑related fees.

Dividend payout (FY2025):

• Interim dividend: S$0.85 per ordinary share.
• Final dividend recommended: S$0.71 per ordinary share.
• Total ordinary dividends for FY2025 amounted to S$1.56 per share, representing a payout ratio of about 50%. In addition, the group returned surplus capital through a special dividend of S$0.50 per share, paid in two tranches during 2025.

Capital and liquidity metrics (FY2025): Management described the bank’s capital position as ‘strong’.

• Common CET1 ratio: 15.1% (down by 0.4% YoY)
• Tier-1 CET1 ratio: 16.1% (down by 0.5% YoY)
• Average all‑currency LCR: 143% (down 5% YoY)
• NSFR: 116% (stable YoY)

Trading information (31 March 2026):

• 50-day moving average share price: S$37.49
• 200-day moving average share price: S$35.82
• Average daily trading volume (three-month): ~3.5 million shares

Analyst stock ratings and share price targets: RHB analysts rated UOB shares ‘neutral’, noting dividends were a ‘slight miss’. DBS analysts also maintained a ‘hold’, with a price target of S$35.70, citing caution over potential deterioration in asset quality. (31 March 2026)

4. ST Engineering (SGX: S63)
 

Industry: Aerospace, defense, and engineering
Market cap: S$33.8 billion

ST Engineering financial results (FY2025):

• Group revenue: S$12.35 billion (+9% YoY).
• Q3 2025 revenue: S$3.1 billion (+13% YoY), with Commercial Aerospace, Defence & Public Security, and Urban Solutions all contributing growth.
• Cash proceeds from divestments (LeeBoy, CityCab, SPTel): S$594 million, generating after‑tax gains of S$258 million.

Dividend payout (FY2025): 

• The board proposed a total dividend of 18.0 Singapore cents per share, comprising interim and final distributions.
• Based on the last traded share price of S$10.93 on 31 March 2026, this equates to a trailing annual yield of ~1.6%.
• The payout ratio was estimated at 63.4%.

Capital and liquidity metrics: 

• Net gearing ratio: 0.38 times (down from 0.42 times in FY2024)
• Cash and cash equivalents: ~S$1.2 billion at year‑end 2025
• Interest coverage ratio: 8.5 times (improved from 7.9 times in FY2024)
• Debt maturity profile: Well‑staggered, with no major refinancing risks in 2026

Trading information (31 March 2026):

• 50‑day moving average share price: S$10.28.
• 200‑day moving average share price: S$8.85.
• Average daily trading volume (three‑month): ~6.3 million shares.

Analyst stock ratings and share price targets: As of 31 March 2026, FactSet data showed 73% of analysts rating ST Engineering a ‘buy’, 20% a ‘hold’, and 7% a ‘sell’. The consensus 12‑month price target was S$11.47, implying potential upside of 6%.

5. Mapletree Logistics Trust (SGX: M44U)

Industry: Real estate investment trust (logistics and industrial properties)
Market cap: S$5.9 billion

MLT financial results (Q3 FY2025/26):

• Gross revenue: S$176.8 million (‑3.1% YoY; ‑0.4% QoQ)
• Property expenses: S$24.8 million (-1.5% YoY; +2.8% QoQ)
• Net property income (NPI): S$152.0 million (‑3.3% YoY; ‑0.9% QoQ)

Dividend payout (Q3 FY2025/26):

• Distributable income: S$92.7 million (‑8.5% YoY; +0.2% QoQ) 
• Distribution per unit (DPU): 1.816 Singapore cents (‑9.3% YoY; +0.1% QoQ)
• Adjusted DPU (excluding divestment gains): 1.815 Singapore cents
• Total 9M (nine months) FY25/26 DPU: 5.443 cents (‑10.7% YoY) 
• Five-year average dividend yield: ~5.4% (based on S$1.16 share price on 31 Mar 2026)

Portfolio metrics:

• Occupancy: 96.4% (up from 96.1% in Q2 FY25/26)
• Weighted average lease expiry (WALE): 2.6 years
• Rental reversion: +1.7% excluding China; +1.1% including China
• Properties: 174 across Asia Pacific, with assets under management of ~S$13.0 billion

Trading information (31 March 2026):

• 50‑day moving average share price: S$1.28
• 200‑day moving average share price: S$1.26
• Average daily trading volume (three‑month): ~13.9 million units

Analyst stock ratings and share price targets: As of 31 March 2026, 58% of analysts polled by FactSet rated MLT a ‘buy’ and 42% a ‘hold’. The consensus 12‑month price target was S$1.44, suggesting an upside potential of roughly 25%.

How to trade and invest in dividend stocks with IG Singapore

CFD share trading
 

1. Create a live or demo account
2. Find an opportunity among one of our 10,000+ stocks with our  stock screener
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

Investing
 

1. Open an account via IG Markets Singapore app
2. Search for dividend stocks on the app
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about dividend stocks