A significant number of Singaporeans count on their Central Provident Fund (CPF) for their retirement savings. This scheme has proven to be a solid method for building a sizable nest egg, offering the potential for a steady flow of passive income after leaving the workforce.
That said, the CPF’s Ordinary Account (OA) provides an interest rate of just 2.5%, which might struggle to outpace inflation over time. Because of this, it’s wise to consider investing in reliable blue-chip stocks with a higher dividend yield to ensure your savings grow more robustly.
Here, I’ll introduce you to five stocks with dividend yields that significantly exceed the rate offered by the CPF OA.
DBS Group (SGX: D05)
DBS is a household name, recognized as Singapore’s largest bank by market capitalisation. The bank capitalized on higher interest rates to achieve record profits in 2024. That year, its total income jumped 10% compared to the previous year, reaching S$22.3 billion. This impressive growth was driven by a 5% year-on-year uptick in commercial book net interest income.
