5 Dividend Growth Stocks to Hold for the Next 10 Years

Dividend growth stocks are the up and coming stocks to go for. They are paying investors increasing dividends year on year. With the dividends increasing year on year, the share price will of course follow suit. Let’s take a look at 5 local dividend growth stocks that we can buy and hold for the next 10 years.

OVERSEA-CHINESE BANKING CORP (SGX : O39)

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OCBC has consistently rewarded shareholders ever since the day they listed. Paying shareholders increasing dividends since 2005 until today. From a $0.11/share dividend payout, to a whopping $0.48/share dividend payout. That is an amazing 336.36% growth for the last 14 years, averaging 28.03% increase per year. The best part is that they are only paying out less than 50% of their earnings. This means that they have plenty of room to increase their dividends even if their earnings remain the same.

If you bought on the day it listed and never bought any more positions after that, you will now have a 7.89% yield. Of course if you buy during the dip in 08-09, you could already be sitting on a 10+% yield on your investment.

Currently, it’s trading at $11.07, giving a 4.36% dividend yield.

SBS TRANSIT Ltd (SGX : S61)

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SBS Transit is a hidden gem here, since no one really expected it to be a dividend growth stock. From 2014 onward, they started to payout increasing dividends, from $0.0215/share to $0.142/share. That is a staggering 562.79% increase in 5 short years, averaging out to about 112.59‬% increase per year. Similar to OCBC, they paid out less than 50% of their earnings, leaving plenty of room for future increments to their dividends.

If you bought it on the first day of 2014 and never bought any more positions after that, you will already be sitting on a 10.8% yield. Not to mention any capital gain you get along the way!

Currently, it’s trading at $3.63, giving a 3.84% dividend yield.

VICOM Ltd (SGX : V01)

VICOM is a no brainer here, a classic go to dividend stock, loved by all Singaporean investors. They essentially do vehicle inspection services in Singapore. Currently, they hold more than 75% market share of the vehicle inspection business in Singapore.

They paid out $0.0775/share in dividends in 2008 and in 2019, they paid out an impressive $0.459/share dividend. That is an insane 492.26% increase in 11 years. The share price of course rocketed with the stock, increasing 328.73% from 3rd Jan 2008 to 27th Dec 2019. In total, that is a ~381% gain in a short 11 years including dividends.

If you bought it on the first day of 2008 and never bought any more positions after that, you will be sitting on a 25.36% yield only after 11 years. On top of that, there is the 329% capital gain too !

Currently, it’s trading at $7.77, giving a 5.87% dividend yield.

Comfortdelgro Corporation Ltd (SGX : C52)

Also another popular and well known stock in Singapore, but most people don’t know that Comfortdelgro owns SBS transit and VICOM. This means that they will also receive gains if the stock pays out more dividends or the stock price increases.

Comfortdelgro has also been increasing their dividends year on year, from $0.0503/share in 2009 to $0.1065/share in 2019. That is a 111.73% increase in 10 years, or about 11.17% increase on average. It is a slow and steady stock that you can buy and hold for the next 10 years and don’t have to worry about it losing you money.

If you bought it on the first day of 2009 and never bought any more positions after that, you will be sitting on 7.2% yield only after 10 years. Though the yield is not as high as the other stocks here, but the capital gains amounted to whopping 51.35% !

Currently, it’s trading at $2.24, giving a 4.89% dividend yield.

SATS Ltd (SGX : S58)

Lastly we have SATS, which is the leading provider of gateway services and food solutions in the region. SATS caters to the needs of the aviation sector and a host of other businesses in hospitality, food, healthcare, freight and logistics industries besides governments.

They have been growing their dividends from $0.13/share in 2014 to $0.19/share in 2019, a 46.15% increase in 5 years. This is also another slow and steady stock that you can buy and hold for the next 10 years.

If you bought it on the first day of 2008 and never bought any more positions after that, you will be sitting on a 5.94% yield only after 5 years. Not to mention the 42.8% capital gain you get along the way !

Currently, it’s trading at $4.57, giving a 4.16% dividend yield.

Though some of these stocks are only giving a 4-6% dividend yield, do remember that they are dividend growth stocks. This means that they will increase their dividends year on year. This means that if that in 5 years time, these stocks could easily be yielding 10+% per year.

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2 thoughts on “5 Dividend Growth Stocks to Hold for the Next 10 Years”

  1. Good analysis. Any growth stocks pf Penny size? What is the future of Koh Eco; Tiong Senf; Tiong Woon; Procurri tech; Avi Tech; Ntegrater tech

    1. Pennies I am currently vested in would only be Ausgroup !

      Pennies that are on my watch list currently are names such as Money-Max Fin., Nam Lee Metal just to name a few. I was previously vested into Avi-Tech and might re enter if a good price comes along !

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