Got S$30,000 to Spare? Here Are 3 Stocks with Both Growth and Dividends for Your Buy Watchlist

SIA

It is always useful to have some spare cash lying around.

This cash can be set aside for emergencies or used to purchase shares of strong companies to help grow your retirement portfolio.

Aside from looking for growth, you may also want to search for stocks that dish out a regular dividend.

These dividends can help supply you with a useful source of passive income.

As time goes by, there is the potential for a well-managed business to increase its dividends if it enjoys higher profits and cash flows.

And if the company’s business is demonstrating sustained growth, its share price should also increase in line with its business growth.

This combination of higher dividends and an increasing share price is a double bonus for investors.

If you have S$30,000 to spare, you can check out these three stocks that hold the promise of both growth and yield.

iFAST Corporation Limited (SGX: AIY)

iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of investment securities such as unit trusts, equities, and bonds.

The group has released an encouraging set of earnings for the first half of 2023 (1H 2023) ending 30 June 2023.

Total revenue inched up 1.2% year on year to S$108.1 million while operating profit surged 69.5% year on year to S$9.1 million in the absence of an impairment loss booked in 1H 2022.

Net profit more than doubled year on year from S$3 million to S$6.6 million.

The fintech paid out a total dividend of S$0.021 for 1H 2023, similar to what was paid out a year ago.

The group’s assets under administration improved by 8% year on year to S$18.81 billion in the second quarter of 2023 (2Q 2023).

Looking ahead, iFAST expects 2H 2023 to show a marked improvement in overall revenue and profitability as its Hong Kong ePension division starts to contribute more significantly.

Next year, CEO Lim Chung Chun believes the group will be in a good position to boost dividend payments to shareholders as iFAST’s overall cash flow is poised to improve “quite significantly”.

Singapore Airlines Limited (SGX: C6L)

Singapore Airlines, or SIA, is Singapore’s flagship carrier and the airline had 199 aircraft in its operating fleet as of 30 June 2023.

The blue-chip airline has seen its business surge in line with border reopenings and the resumption of air travel.

SIA reported a stellar set of earnings for its fiscal 2024 first quarter (1Q FY2024) ending 30 June 2023.

Total revenue rose 14% year on year to S$4.5 billion while operating profit jumped 35.8% year on year to S$755 million.

Net profit hit a record high of S$734 million, up 98.4% from the prior year’s quarter.

The group paid out a total dividend of S$0.38 for FY2023, giving its shares a trailing dividend yield of 5.6%.

The air travel outlook remains robust for all route regions even as competition intensifies.

SIA is confident of capturing more business in FY2024 and will adjust its capacity and network accordingly.

Sheng Siong Group Ltd (SGX: OV8)

Sheng Siong operates one of the largest supermarket chains in Singapore with a total of 68 outlets across the island.

The group sells a wide assortment of products including live and fresh produce along with toiletries and essential household products.

The retailer reported a mixed set of earnings for 1H 2023 as higher costs ate into its net profit.

Revenue inched up 2% year on year to S$690.5 million with gross profit improving by 3.1% year on year to S$205.1 million.

Net profit, however, fell by 2.9% year on year to S$65.5 million.

Despite the slightly weaker performance, Sheng Siong managed to grow its store count from 66 in 1H 2022 to 68 in 1H 2023.

The total retail area has also increased from 596,700 square feet to 613,100 square feet over the same period.

The group also paid out an interim dividend of S$0.0305, taking its trailing 12-month dividend to S$0.0612.

Shares of the supermarket operator offer a trailing 12-month dividend yield of 3.9%.

CEO Lim Hock Chee has reiterated the group’s expansion strategy of seeking to open stores in new and existing HDB estates.

With a projected sharp increase in HDB flats in the coming years, there are good prospects for Sheng Siong to secure good shop spaces for new store openings.

The group’s top and bottom lines will be driven higher by these new openings and with better profits, the retailer may also dish out higher dividends in time to come.

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Disclosure: Royston Yang owns shares of iFAST Corporation Limited.

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