Reliability is a critical consideration for any retirement portfolio.
Investors should focus on dividend stocks that maintain stable payouts regardless of economic conditions.
Among the stocks fitting this criterion are ST Engineering , Singapore Exchange , CapitaLand Integrated Commercial Trust , and Frasers Centrepoint Trust .
ST Engineering — Remarkable Stability Across Cycles
ST Engineering, known as STE, is Singapore’s leading defense contractor with diversified commercial operations that bolster its business steadiness.
The core segments include commercial aerospace (CA), Defense & Public Security (DPS), and Urban Solutions.
STE's revenue has enjoyed an impressive compound annual growth rate (CAGR) of 11.5% over the past five years, increasing from S$7.16 billion to S$11.67 billion in the last 12 months (LTM).
During this same period, net profit rose with a respectable CAGR of 9%, from S$521.8 million to S$768.6 million.
STE enhanced its shareholder value by increasing dividends from S$0.15 per share in 2020 to S$0.17 by 2024.
Although the company plans higher dividends in the future, management also emphasizes reinvestment into the business.
The payout ratio, reflecting increasing earnings, has decreased, now at 68.9% for the LTM compared to 89.6% in 2020.
STE’s resilient income is bolstered by long-term government contracts from its DPS segment and sustained maintenance revenue from its CA segment, making it an ideal anchor for a low-stress retirement portfolio.
Singapore Exchange — A Dividend Powerhouse Built on Stability
Singapore Exchange, or SGX, enjoys a monopoly in the country's capital markets, being the sole financial exchange operator.
For the fiscal year end in 2025 (FY2025), SGX achieved net revenue of S$1.3 billion.
Their revenue streams are segmented into Fixed Income, Currencies and Commodities (FICC), Equities (Cash), Equities (Derivatives), and Platform and Others (market data).
FICC accounted for nearly 25% of the total revenue, with Equities-Cash and Equities-Derivatives contributing 30.3% and 26.6% respectively, while Platform and Others comprised 18.3%.
SGX's robust cash generation is consistently returned to shareholders through dividends.
Their latest annual dividend per share of S$0.375 offers approximately a 2.2% yield.
Notably, SGX has maintained annual dividends every year since 2001, having been listed in late 2000.
The outlook for SGX remains positive, fueled by expanded derivatives access and offerings, new ETF listings, and the introduction of sustainability products.
SGX is a defensively strong business offering moderate growth, with substantial free cash flow (S$773.6 million) and a low leverage ratio (0.8 times).
This makes SGX a compelling choice for a solid dividend payer in a retirement portfolio.
CapitaLand Integrated Commercial Trust — A Dependable Blue-Chip REIT
CapitaLand Integrated Commercial Trust (CICT) offers extensive exposure to prime malls and offices across Singapore.
With an impressive occupancy rate of 97.2% and leases averaging 3.2 years, it's a stable investment.
The aggregate leverage is at 39.2%.
After the COVID-19 setback, CICT’s distribution per unit (DPU) has consistently grown annually.
Recent acquisitions, like the remaining 55% stake in CapitaSpring, and asset enhancements, such as upgrades for Lot One and Tampines Mall, strengthen their portfolio.
As interest rates ease, refinancing costs for CICT are expected to drop.
Management forecasts resilient DPU thanks to rent increases and new or upgraded asset contributions.
Ultimately, CICT provides a stable and recurring income from premium Singapore assets, making it another essential holding for retirement-centric investors.
$Frasers Centrepoint Trust(J69U.SI) — Resilient Neighborhood Retail REIT
Frasers Centrepoint Trust, or FCT, owns suburban malls focused on daily needs, such as groceries and dining.
With prominent locations like NEX, Causeway Point, Waterway Point, and Northpoint City, FCT proudly maintains a portfolio occupancy rate of 98.1%.
FCT’s strong distribution history saw reductions only during the pandemic and during the inflationary period from 2022-2024.
Its DPU remains steady, exceeding S$0.12 per share for five consecutive years.
With a moderate leverage of 39.6% and a favorable debt cost at 3.5%, the REIT boasts solid financial health.
The top tenants include stable consumer businesses such as NTUC FairPrice and Breadtalk, ensuring consistent sales and renewals for FCT.
FCT’s emphasis on consumer staples promotes a strong cash flow, ideal for retirees seeking reliable income.
Why These Blue-Chips Complement Each Other
These four stocks together offer a balanced approach:
ST Engineering and SGX ensure industrial and financial strength, while CICT and FCT offer steady property-income.
In economic downturns, all four companies have either maintained or only slightly reduced payouts (notably FCT).
This blend of industrial, financial, and property blue-chips supports both income reliability and long-term growth.
