Put your money where your mouth, heart, mind and feet are — invest in the stocks of the companies you patronise daily. Here are 12 of the best local (and overseas) stocks to invest in to #supportlocalsg.
Local bank stocks are amongst the most popular stocks in Singapore due to their steady dividend payouts. However, the stock prices of DBS, OCBC and UOB can be pricey, considering that one share can cost S$12 (for OCBC) or close to S$30 (for DBS or UOB).
Here are a handful of local stocks for investors to consider.
#1 QAF Limited
Eat Gardenia bread? Consider QAF shares .
QAF is the company behind branded packaged breads Gardenia and Bonjour. A household name when it comes to bread found on supermarket shelves, Singaporeans will be familiar with Gardenia’s white, wholemeal, low-GI multigrain loaves, cream buns and...Twiggies. The company also sells spreads in Singapore such as Cowhead Butter and Cowhead Cream Cheese Spread.
Over the past five years, QAF reached a high of S$1.56 in February 2017 and a low of S$0.58 in December 2018. It’s been hovering just below S$1 for the past year, last trading at S$0.98. In 2020, QAF paid out S$0.05 per share in dividends — an attractive yield of about 5%.
#2 Kimly Group
Drink kopi at Kimly coffee shops? Consider Kimly Group.
One of the largest traditional coffee shop operators in Singapore, Kimly owns brands such as Kimly Coffeeshop and foodclique. Currently they operate and manage 83 coffee shops and food courts in Singapore, with a total of nearly 500 stalls that vary in specialties from mixed vegetables to dim sum and seafood ‘zi char’. Interestingly, 52 of the 83 coffee shops are open 24 hours.
Kimly listed on SGX in March 2017 and has been rewarding investors with dividends regularly. In 2020, Kimly distributed dividends of S$0.011 per share — a yield of about 2.64%. Kimly’s share price reached its highest of S$0.50 on its first day of listing before falling to a low of S$0.19 in March 2020. Its share price has since been steadily on the rise, last trading at S$0.42.
#3 Haw Par Corporation
Use Tiger Balm for your muscle aches, headaches or stuffy nose? Consider buying Haw Par Corporation stocks.
Owner of the iconic Tiger Balm Brand, Haw Par is a local company that has business in healthcare, leisure products, property and investments. Besides the well-known Tiger Balm, you can also find Tiger Balm-branded mosquito repellent, joint rub, muscle gel and more on the shelves of stores such as Guardian and Watson.
A stock that’s nearly as old as Singapore, Haw Par listed on the SGX in 1969. Over the past few years, Haw Par stock price hit a low of S$9.25 in April 2020 and a high of S$14.55 in May 2019, last closing at S$13.40. In 2020, Haw Par gave investors dividends of S$0.3 per share — a yield of 2.24%.
Prefer to flag a cab or book a ComfortDelGro taxi? Consider riding on ComfortDelGro’s stock.
Besides relying on the popular Grab or Gojek for your ride-hailing trips, you can also get a ride on a ComfortDelGro cab by booking on the ComfortDelGro Taxi or Zig apps. You can also order food delivery, book event tickets, make restaurant reservations and more on Zig. Just like GrabRewards, Zig also has its own rewards programme Zig Rewards.
Over the past couple of years, ComfortDelGro’s stock price has generally trended downwards, reaching a low of S$1.35 in October 2020 — less than half of its high of S$3.17 in June 2015. The stock recently closed at a price of S$1.59. ComfortDelGro has been consistently giving out dividends, though this sharply fell to S$0.053 per share in 2020 (a 3.33% yield) compared to S$1.07 in 2019.
#5 SBS Transit
Take public transport (MRTs and buses) daily? Consider hopping on the SBS Transit stock.
The most affordable mode of transportation, public transport is something the majority of Singaporeans are familiar with, especially during pre-COVID times.
Like ComfortDelGro, SBS Transit also saw a sharp drop in dividends in 2020 compared to 2019. In 2019, shareholders received S$0.143 per share, while in 2020 dividends per share dropped to S$0.059 — unsurprising considering that the population had to transition to work-from-home and were also encouraged to stay home to reduce the spread of COVID-19.
Over the past few years, SBS Transit has been on an uptrend, hitting highs of S$4.26 in 2019 before dipping sharply when COVID-19 hit and trading at S$2.99 today.
Check out some of the top credit cards you should be using as your EZ-Link card here.
#6 Dairy Farm International
Do your grocery shopping at Cold Storage or Giant? Consider getting Dairy Farm International stocks.
Grocery retail outlets aside, Dairy Farm also owns Guardian, a health and beauty store, as well as the ubiquitous convenience chain store 7-eleven.
A stock that consistently delivers when it comes to dividends, Dairy Farm gave investors S$0.195 dividends per share in 2020 (a 5.19% yield), slightly lower than the S$0.21 per share given in the three years prior. Over the past few years, Dairy Farm’s stock price has generally been on a downtrend, seeing a sharp drop of about 5% to US$3.76 after they posted a first half underlying net profit that’s nearly 70% lower compared to the same period last year, largely stemming from a dip in grocery retail earnings.
Alternatively, if Sheng Siong is the grocer for you, you can purchase Sheng Siong stocks instead with a 3.38% dividend yield. Unfortunately for NTUC-goers, NTUC isn’t a publicly listed stock.
#7 CapitaLand Integrated Commercial Trust
Shop, eat, drink and play at CapitaLand malls? Consider buying CapitaLand shares.
Bugis Junction, Funan Mall, Raffles City and Westgate are just four of the eleven Capitaland malls owned by CapitaLand Integrated Commercial Trust (CICT). CICT was previously named CapitaLand Mall Trust and renamed to CICT in November 2020, after the merger with CapitaLand Commercial Trust.
In 2020, CICT rewarded investors with dividends of S$0.061 per share. This 2021, the dividend yield is set to go up with a dividend of S$0.069 per share — a 3.22% yield.
CapitaLand aside, the same concept applies for Frasers Centrepoint Trust — a REIT that owns Waterway Point, Causeway Point and Changi City Point. Other retail REITs that own local malls include SPH REIT and Starhill Global REIT.
REITs are best known for their high dividend yields, making them a great addition to portfolios looking to generate passive income. Read more about the different types of REITs in this article.
#8 Netlink NBN Trust
Use wifi at home? Consider getting Netlink NBN Trust shares.
Netlink NBN Trust owns the only nationwide fibre network supporting Singapore's Next Generation Nationwide Broadband Network — an initiative of the Singapore government. Also known as Next Gen NBN, this provides residential and non-residential users with ultra-high-speed internet access.
Regardless of which provider your home fibre broadband plan is from, Netlink provides the service to activate and install the fibre infrastructure and Termination Point that’s required.
Some liken Netlink shares to a bond because of its stable share price and steady dividend payouts. In 2020, Netlink’s dividend per share was S$0.051, equivalent to a 5.12% yield — not too shabby at all. Since its inception in July 2017 when the share price opened at S$0.81, Netlink saw its lowest of S$0.74 in June 2018 and its highest of S$1.03 in May 2020, last closing at S$0.98 on 30 July 2021.
#9 Singapore Airlines
Ready to fly with Singapore Airlines when COVID-19 blows over? Consider hopping on Singapore Airlines shares.
There’s just something different about flying with Singapore Airlines (SIA). Maybe it’s the SQ girl’s traditional outfit, the taste of local cuisine while on a plane or that slight 'Singlish' tone we hear over the plane’s intercom. Or perhaps, we simply need to fly via SQ because we’ve been accumulating Krisflyer miles all this while.
From an investor point of view, SIA hasn’t been the most promising stock, facing headwinds ever since COVID-19 landed. 2020 was the first in many years SIA failed to give out dividends and 2021 appears to be the same. Read all about SIA shares and dividends here.
To start investing in these local companies, you’re going to need a brokerage account with access to Singapore stocks. Compare the best ones on the SingSaver site.
Bonus: Overseas edition
Here are the Singapore stocks that have been making waves in the overseas stock markets.
#10 Sea Limited
Get excited over the $0.10 deals on Shopee or...get annoyed by the monthly sales that make you spend money? Consider Sea Limited shares.
Sea Limited owns Shopee — one of the leading e-commerce platforms in Southeast Asia launched in 2015. Besides Shopee, Sea Limited also owns Garena as well as the Lion City Sailors FC, a football club that plays in the S-League (previously named Home United).
Out of all the stocks on this list, Sea Limited is the standout star, with its stock price skyrocketing from US$40 in Jan 2020 to US$297 in July 2021 — a massive 642% increase in just over a year and a half. Unlike the Singapore-listed stocks mentioned above, Sea Limited does not currently pay out dividends, though its stellar growth is more than enticing for prospective investors.
#11 Razer Inc.
Use a Razer mouse and keyboard? Consider purchasing Razer shares.
A company best known as a brand for gamers, Razer produces hardware such as laptops, mice, keyboards and more. Gaming products aside, Razer has also started to make its move into the financial payment services space, having launched a mobile wallet in Razer Pay, as well as a sleek Visa prepaid card (Razer Card) that rewards users with cashback.
Recently, Razer’s CEO has also been in the news for buying a Good Class Bungalow (GCB) in the Bukit Timah area.
Razer was listed on the Hong Kong Exchange in November 2017 at an IPO price of HK$3.88. However, it has since trended downwards, last closing at HK$1.88 on 30 July 2021. Razer does not currently pay out dividends.
Use Grab for transport, delivery and contactless payments? Look out for their impending IPO.
Grab is set to go public in Q4 2021 through a SPAC merger with Altimeter Growth Corp. with a valuation of close to US$40 billion. Once this merger is complete, Grab will trade on the Nasdaq under the ticker symbol GRAB.
This means that if you’re keen to own Grab shares, you can purchase shares of Grab’s SPAC (Altimeter Growth Corp) that is already listed on the Nasdaq today, trading at US$10.68. Alternatively, you can also wait a few months to purchase Grab shares directly, after the merger.
Read the full details on Grab’s upcoming IPO here.
Besides Grab, other companies making the news for a potential IPO include PropertyGuru, Carousell, Ninja Van and Lalamove.
Do keep in mind that not all brokerages provide access to overseas markets such as the US and Hong Kong. To start investing in these local companies found on overseas stock exchanges, you’re going to need a brokerage account that can offer just that.
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