Hey fellow dividend investors! Everyone loves a good dividend stock. But let me ask you, when you think about Singapore dividend plays, what comes to mind? Banks? Or REITs?

For the past few years, banks have been the market darlings, benefiting from high interest rates and strong earnings growth. Meanwhile, REITs have been under pressure, grabbing headlines for all the wrong reasons: rising debt costs, valuation discounts, and slower distribution growth. But while all the attention has been on these two sectors, a few dividend-paying stocks have quietly been delivering fantastic returns due to strengthening business fundamentals. They have rewarded investors with double-digit share price gains, along with increasing dividends!

Today, I want to highlight three dividend growth stocks that have not only increased their payouts but have also outpaced the market. One of them has seen its share price nearly double in the past 2 years, and incredibly, its dividend payouts have almost doubled too! Which stock is this in sleepy Singapore? And if you’re wondering, no, this is not one of the banks!

In this post, we’ll take a closer look at these three dividend stocks, understand why they’ve been doing so well, examine their dividend growth, and discuss whether there’s still room to run. If you’re looking for solid dividend payers that don’t just offer a high yield but also show strong dividend growth potential, then stay tuned.

Before we dive in, let me remind you that this post is for informational purposes only and not financial advice. Always do your own research or consult a financial professional before making any investment decisions. I own some of these stocks for my portfolio, but remember what works for me might not work for you. And finally, it’s important to note that past performance does not guarantee future results.

Alright, let’s get started!

SingTel: Quietly Delivering Growth & Dividend Hikes

When we think of SingTel, we often think of it as just another telco. But SingTel is much more than that. It’s the largest telecommunications provider in Singapore, with significant operations in Australia through Optus, as well as strategic investments in major regional telcos like Bharti Airtel (in India), AIS (in Thailand), and Telkomsel (in Indonesia). It also has growing businesses in enterprise digital services, data centers, and AI infrastructure.

For years, SingTel was seen as a stock that lacked excitement, often underperforming the market. In fact, I’ve held SingTel for a while now and has been rolling my eyes whenever I see its share price! But in the past 2 years, something changed: its strategic reviews and market optimism over  has quietly delivered strong results, pushing its share price up 34% while raising dividends along the way.

1. Strong Earnings Momentum

SingTel’s Q3 FY2025 results showed a 22% increase in underlying net profit to S$680 million. And this wasn’t just from cost-cutting, its business fundamentals are genuinely improving.

A key driver? Optus, its Australian subsidiary, which saw a massive 54% jump in EBIT. This is remarkable because Optus was previously seen as SingTel’s weak spot, struggling with competition and even suffering a major network outage in 2023. But now, with better cost control and mobile price hikes, Optus has turned from a drag to a growth engine for SingTel.

In Singapore, SingTel’s core telco business remains resilient, with EBITDA rising 2% despite declining handset sales. It has also secured a S$643 million green loan for expanding its Tuas data center, which will further strengthen its digital infrastructure business.

2. Regional Associates Adding to the Bottom Line

Beyond its core business, SingTel’s regional telco investments are adding significantly to the bottom line. Contributions from these stakes grew 11% year-on-year to S$1.3 billion, led by Bharti Airtel in India, which has been hiking mobile prices and expanding its 5G rollout.

3. Dividend Growth & Active Capital Management

Now, here’s what matters most to dividend investors. SingTel has raised its 2024 dividend payout guidance to 16.8 cents per share, up from 13 cents in 2023 and 11.9 cents in 2022. That’s an increase of 41% over 2 years, making this one of the outperformers in my portfolio to have risen dividends consistently.

Why SingTel is Becoming Attractive Again

For years, SingTel was stuck in a slow-growth cycle, but that’s changing. With Optus rebounding, regional telcos growing, and new ventures in AI, 5G, and data centers, SingTel is positioning itself as more than just a telco: it’s becoming a diversified digital infrastructure giant. 

ST Engineering – The Quiet Giant with a Growing Dividend

Next up, ST Engineering. Now, some of you might have thought ST Engineering is the dividend stock with almost a 100% gain in share price, the one I’ve been drumming up your interest in! Despite ST Engineering doing very well indeed, with the share price surging 74% in the past 2 years, this defense behemoth is not the one! So stay tuned for the reveal in the end. 

But before that, let’s not take anything away from ST Engineering, the dividend stock contributing tremendously to my portfolio. It has quietly been delivering solid growth in both earnings and dividends over the years. As one of Singapore’s leading engineering groups, ST Engineering operates in three key business segments: Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom. While many investors focus on REITs or banks, ST Engineering has steadily grown its revenue, earnings, and dividends, all while maintaining strong cash flow and an impressive order book.

1. Strong Financial Performance

In FY2024, ST Engineering reported record revenue of S$11.3 billion, up 12% year-on-year, driven by strong performance across all business segments. Net profit also climbed 20% to S$702 million, showing the company’s ability to grow despite global economic uncertainties. Its order book now stands at S$28.5 billion, providing strong revenue visibility, with S$8.8 billion expected to be delivered in 2025. 

2. Strong Growth in Aerospace and Defence

ST Engineering’s Commercial Aerospace segment saw a 12% revenue increase, driven by higher aircraft maintenance demand. If you’ve flown recently, you know air travel is booming, and airlines are scrambling to service their fleets, a trend the company is cashing in on.

Meanwhile, its Defense & Public Security segment grew 16%, as global defense spending rises amid geopolitical tensions. This includes new deals in land defence, cybersecurity, and AI-driven command & control systems. With rising geopolitical tensions, many governments are ramping up defence spending, positioning ST Engineering well for future growth.

3. Dividend Growth: Steady and Reliable

ST Engineering isn’t just growing earnings, it’s raising dividends too. The company declared a final dividend of 5.0 cents, bringing the total FY2024 dividend to 17 cents, up from 16 cents in FY2023.

While a 6% dividend increase may seem small, ST Engineering’s dividends have been stable and growing every year, which is exactly what long-term dividend investors want.

Why ST Engineering Deserves Attention

With record-high order books, strong growth in aerospace and defense, and a consistent dividend policy, ST Engineering is proving to be a rock-solid dividend stock.

And despite its strong share price gains over the past years, especially the 15% surge in the past week, we may still see upside to the dividends going forward with analysts optimistic on its growth prospects. 

Before we reveal the amazing dividend stock with both share price and dividend payout doubling, let me ask you: how often do you come across stocks quietly delivering double-digit gains while increasing dividends? If this is the kind of investing edge you appreciate, tap that like button and subscribe! It’s the best way to make sure you stay informed and ahead of the curve, just like these underrated dividend giants. Alright, let’s move on!

Sembcorp Industries – Powering Up Profits with Renewables & Higher Dividends

While banks and REITs have been in the spotlight, Sembcorp Industries has been quietly delivering some impressive returns in the Singapore market. Over the past 2 years, its stock has surged more than 90%, and its dividends have more than doubled, but you wouldn’t know it from how little attention it gets!

Let’s talk about where these strong earnings are coming from. Sembcorp operates across three key business segments: 1) Gas & Related Services which consist of traditional energy, gas-fired power plants, and utilities, 2) Renewables, which is solar, wind and green hydrogen, and 3) Integrated Urban Solutions, including smart industrial parks, and urban infrastructure development. 

Let’s run through a few attractions of Sembcorp

1. Strong Earnings Growth Despite Market Challenges

Sembcorp reported FY2024 net profit of S$1.02 billion, despite a planned major maintenance shutdown that affected some of its power assets.

Its Gas & Related Services segment continues to be the anchor of earnings, contributing S$727 million in net profit. Even though Singapore’s wholesale electricity prices fell 34% in 2024, Sembcorp has locked in long-term contracts for over 60% of its power capacity, ensuring steady cash flows for years to come.

2. The Renewables Growth Engine

Now, the real excitement lies in Sembcorp’s renewables business. The company has been aggressively expanding its clean energy capacity, securing 4.1GW of new projects in the past year, bringing its total renewables capacity to 17GW.

And Sembcorp isn’t stopping there. It has set an ambitious target to grow to 25GW by 2028, making it one of the largest renewable energy players in Asia.

With the global push towards decarbonization and countries ramping up investments in clean energy, Sembcorp’s renewables business is perfectly positioned to capitalize on these long-term trends.

3. Doubling Down on Dividends

Dividend investors, take note! Sembcorp has increased dividends to 23 cents in 2024, up from 13 cents in 2023 and 12 cents in 2022. This represents a 92% increase in dividends over 2 years. This is definitely impressive on any measure.   

Why Sembcorp is attractive even now?

The massive dividend hike is a clear signal of confidence from management, showing that they expect sustained earnings growth moving forward. The focus on energy and renewables is not letting up in this part of the world any time soon, reflecting optimism for its businesses going forward. 

The Dividend Uncle’s Take: What’s Next for These Dividend Giants?

Now, after such strong gains of between 30% to 90% over the past 2 years, the big question is, can these three dividend stocks continue their momentum?

Singtel has turned the corner, with Optus recovering, regional telco earnings growing, and AI & data centers adding future potential. But the wildcard? More stake sales could mean special dividends, but could it affect their core business down the road?.

ST Engineering is backed by a record S$29 billion order book, providing strong revenue visibility. But can it execute well? If costs stay under control, this could remain a steady dividend-growth play in volatile geopolitical climate. But is this certain?

Sembcorp is rapidly expanding its renewables portfolio. If it executes well, it could become a dominant clean energy player, a strong mix of dividend growth & capital appreciation. But could the US turning away from climate-related policies affect Sembcorp?

Certainly, there are risks in the horizon for all 3 dividend stocks. In addition, valuations aren’t cheap anymore, especially compared to a few years ago. However, if the underlying earnings continue growing alongside strong industry tailwinds, these stocks could still have upside from here. The key is to watch how well they execute and monitor industry trends – be agile and do your homework, fellow dividend investors! 

Of course, past performance doesn’t guarantee future results, so always conduct your own research and analysis before making any investment decisions.

Alright folks, that’s all for today. Now, what do you think? Do you own any of these dividend growth stocks, or are you considering adding them? Let me know in the comments! And if you found this useful, hit the ‘like’ and subscribe for more dividend stock insights.

Until next time, happy investing!