Singapore’s CPF Ordinary Account (OA) yields a rock‑solid 2.5 % – a benchmark many retirees treat as “good enough.”
Five SGX‑listed companies are now dishing out ≈ 5 % dividend yields, effectively doubling the CPF OA return.
Higher yields mean higher risk. Look at cash‑flow sustainability, payout ratios, and balance‑sheet strength before loading up.
Below is a quick‑read, data‑driven rundown of the five highest‑yielding SGX stocks that could become the new “income anchors” in a CPF‑style portfolio.
- DBS Group Holdings Ltd (SGX: D05) – The Blue‑Chip Dividend Anchor
Metric (FY 2025) Value
Net profit S$11.0 bn
Dividend per share (FY 2025) S$0.62
FY 2025 dividend yield ≈ 5.2 %
CET‑1 capital ratio 17.0 %
Payout ratio* 45 %
Why it matters
Consistent payouts – Even after trimming dividends during the pandemic (as regulators required), DBS rebounded quickly and has raised its payout every year since 2021.
Balance‑sheet resilience – A CET‑1 ratio of 17 % sits comfortably above the 13.5 % regulatory minimum, giving the bank a strong shock‑absorber for credit‑cycle stress.
Earnings engine – Record net profit was driven by a surge in wealth‑management fees, higher net interest margins (NIM), and a diversified regional footprint.
Risk check
Interest‑rate sensitivity – A sharp rise in global rates could compress NIMs, though DBS’s strong loan‑to‑deposit ratio and robust digital platform mitigate this.
Regulatory headwinds – Banking capital rules can force dividend caps; keep an eye on MAS policy changes.
*Payout ratio = dividend ÷ net profit. Anything under 60 % is generally considered safe for a bank.
- CapitaLand Ascendas REIT (SGX: C38U) – The Logistics Powerhouse
Metric (FY 2025) Value
Net property income S$1.71 bn
Distribution per unit (FY 2025) S$0.21
FY 2025 distribution yield ≈ 5.1 %
Gearing (net debt/NPV) 41 %
Payout ratio* 90 %
Why it matters
Portfolio depth – 200+ logistics and business‑park assets across Asia‑Pacific, with a 93 % occupancy rate.
Growth tailwinds – E‑commerce and supply‑chain reshoring keep demand for high‑quality warehousing robust.
Dividend policy – Targets a minimum 4.5 % distribution yield; currently delivering a little over 5 %.
Risk check
High payout ratio – At 90 % of net property income, any dip in rental rates could pressure distributions.
Interest‑rate exposure – REITs borrow heavily; a steep rise in borrowing costs could squeeze net income.
- Singapore Telecommunications Ltd (Singtel) (SGX: Z74) – The Dividend Veteran
Metric (FY 2025) Value
Net profit S$2.5 bn
Dividend per share S$0.12
FY 2025 dividend yield ≈ 5.3 %
Debt‑to‑Equity 0.88
Payout ratio* 78 %
Why it matters
Cash‑flow machine – Stable cash from its core telecoms business in Singapore, plus a growing digital services arm (Singtel Digital).
Strategic overseas footprint – Stakes in regional operators (e.g., Telkomsel, AIS) provide diversification and higher‑margin growth.
Share‑buyback plus dividend – The company has a dual‑track approach to return capital, which can cushion any dividend dip.
Risk check
Regulatory pricing – The Infocomm Media Development Authority can cap domestic pricing, potentially compressing margins.
Debt profile – While manageable, a higher-than‑average gearing for a telecom means interest‑rate hikes could bite.
- Mapletree Logistics Trust (SGX: M44U) – The REIT with a “steady‑as‑she‑goes” mantra
Metric (FY 2025) Value
Net property income S$1.02 bn
Distribution per unit S$0.12
FY 2025 distribution yield ≈ 5.0 %
Gearing 39 %
Payout ratio* 92 %
Why it matters
High‑quality asset base – 94 % of properties are “Class A” logistics facilities, prized for speed‑to‑market.
Active asset management – Regular rent reviews, lease‑renewals with “step‑up” clauses, and targeted acquisitions keep the income stream healthy.
Dividend resilience – Despite a 92 % payout ratio, Mapletree’s strong “core‑plus” model and diversified tenant mix have kept distributions stable through market cycles.
Risk check
Concentration risk – Heavy exposure to the Singapore market (≈ 60 % of assets) means local macro‑economic shocks could affect occupancy.
Yield sustainability – Slightly lower operational cash‑flow cushion compared with other REITs; watch for any escalation in vacant space.
- Eastern Holdings Ltd (SGX: EDU) – The Consumer‑Goods Dividend Dynamo
Metric (FY 2025) Value
Net profit S$0.54 bn
Dividend per share S$0.10
FY 2025 dividend yield ≈ 5.4 %
Debt‑to‑Equity 0.24
Payout ratio* 63 %
Why it matters
Stable cash‑generating business – Leading distributor of fast‑moving consumer goods (FMCG) in Singapore, plus a growing e‑commerce fulfilment arm.
Low leverage – Debt‑to‑Equity of 0.24 leaves ample headroom for dividend growth and strategic acquisitions.
Consistent earnings – Even during the pandemic, Eastern’s essential‑goods portfolio delivered resilient revenues.
Risk check
Margin pressure – Rising input costs (fuel, packaging) could erode operating margins if not passed onto customers.
Currency exposure – A significant portion of purchases are denominated in USD; a strong Singapore dollar could compress profit margins.
How Do These Yields Stack Up Against the CPF OA?
Investment Yield (FY 2025) Capital Protection Volatility Liquidity
CPF OA 2.5 % (guaranteed) Very high – government‑backed None Low – funds locked until age 55
Dividend Stocks ≈ 5 % Medium – depends on company health Medium‑High – share price swings, dividend cuts possible High – can be bought/sold daily on SGX
Bottom line:
Higher yield ≠ higher safety. A 5 % dividend looks tempting, but it comes with market risk, earnings volatility, and sometimes opaque payout sustainability.
Diversify – Blend a few of the stocks above with your CPF OA to capture the extra yield while preserving a core of low‑risk assets.
Do the homework – Look beyond headline yields. Examine cash‑flow coverage, payout ratios, debt levels, and the company’s track record of maintaining (or growing) dividends over multiple cycles.
Practical Steps to Add High‑Yield SGX Stocks to Your Portfolio
Audit your risk tolerance – If you’re a conservative saver nearing retirement, cap exposure to 10‑15 % of total assets.
Start with a “core‑plus” mix – DBS and Singtel provide solid earnings quality; REITs (CapitaLand Ascendas, Mapletree) add real‑asset diversification; Eastern adds exposure to consumer staples.
Use a dollar‑cost‑averaging (DCA) approach – Spread purchases over 3‑6 months to smooth out entry‑point volatility.
Set a dividend‑monitoring rule – If a company’s payout ratio exceeds 80 % and cash‑flow coverage dips below 1.2×, consider trimming the position.
Reinvest dividends – If you have a longer investment horizon, opting for a DRIP (dividend reinvestment plan) can compound returns and bring you closer to the “double‑CPF” target faster.
Frequently Asked Questions
Question Answer
Can I withdraw dividends as cash? Yes – dividends are credited to your brokerage account and can be transferred to your bank. Some brokers also allow automatic reinvestment.
Do dividend payments affect my CPF contribution rates? No. CPF contributions are based on your employment earnings, not investment income. However, dividend income is taxable if you’re a Singapore tax resident with total taxable income over the threshold.
What about the tax on dividends? Singapore does not levy a tax on dividends received from Singapore‑listed companies (they’re paid out of post‑tax profits). For foreign‑listed holdings, you may incur withholding tax.
Should I hold these stocks in a CPF Investment Scheme (CPFIS) account? Only DBS (a CPF‑approved stock) is eligible for CPFIS. REITs and other eligible equities can also be held, but you must meet the CPFIS eligibility criteria and the “maximum 35 % of CPF balance” rule for equities.
Is a 5 % yield sustainable in a rising‑rate environment? Not guaranteed. Higher rates can improve REIT yields (via higher borrowing costs passed to tenants) but can also compress bank NIMs and corporate earnings. Continuous monitoring is key.
Final Thought: Double the Yield, Not the Risk
The CPF OA will always be the “set‑and‑forget” safety net for most Singaporeans. But for those looking to squeeze a bit more out of their savings—especially in a low‑interest environment—targeting 5 %+ dividend yields can be a sensible, risk‑adjusted strategy when you:
Choose high‑quality issuers with strong balance sheets.
Keep an eye on payout sustainability (cash‑flow coverage, payout ratios).
Diversify across sectors (banking, REITs, telecom, consumer staples).
Do the math, stay disciplined, and you could see real‑world returns that outpace the CPF OA, while still preserving enough capital protection to sleep well at night.
Happy investing, and may your dividend stream be as steady as the Singapore skyline!
References
Annual Reports FY 2025: DBS Group, CapitaLand Ascendas REIT, Singtel, Mapletree Logistics Trust, Eastern Holdings.
Monetary Authority of Singapore (MAS) banking and REIT regulations.
Yahoo Finance data (retrieved 16 Mar 2026).