At 25, time is the most valuable asset when it comes to investing.
And, I mean even more than the cash you’re putting aside.
With time on your side, you let the power of compounding do the heavy lifting for you.
Let me share with you the “stock shopping list” I have as a 25 year old in the midst of building a lifetime of dividend payouts.
Not only will these picks be stable, but they also have a solid track record of dividend growth and resilience.
Right now, time is your best ally.
The earlier you start, the more dividends you can receive and reinvest, allowing your wealth to snowball with minimal effort.
By picking high-quality dividend stocks now, you essentially build your personal pension fund that will pay you for decades.
The best part?
You don’t need a massive capital to start.
As long as you remain consistent, the power of compounding allows even small contributions to grow into a huge income stream over time.
ST Engineering is a global technology and engineering conglomerate that handles everything, from defense equipment to smart city solutions.
For 2025, revenue was up 9.5% year-on-year (YoY) to over S$12.3 billion, while net profit soared 21% YoY to nearly S$851 million.
Driven by the rebound in air travel and surge in defense spending, revenue spiked for both the Commercial Aerospace, and the Defence and Public Security segments.
For context, Commercial Aerospace reported a 22% YoY jump in base operating performance (BOP) EBIT to S$486.7 million.
Not to be outdone, Defence and Public Security BOP EBIT grew 14% YoY to S$725.2 million.
At the end of 2025, the group has an order book of S$33.2 billion, with S$9.9 billion to be delivered this year.
Management also raised its total dividend from S$0.17 per share in 2024 to S$0.23 per share in 2025 (including a S$0.05 special dividend).
The company also committed to distribute one-third of its YoY net profit increase back to investors as incremental payouts.
CapitaLand Integrated Commercial Trust (CICT) is home to 20 income-producing properties in Singapore and five strategic assets across Germany and Australia.
As of 31 December 2025, the portfolio is worth S$27 billion.
For 2025, gross profit inched up by 2.1% YoY to S$1.6 billion, while net property income (NPI) ticked up 3.1% YoY to almost S$1.2 billion.
More importantly, this growth flowed directly to investors, resulting in a 6.4% YoY jump in distribution per unit (DPU) to S$0.1158.
As part of its reconstitution strategy, CICT sold Bukit Panjang Plaza for a massive 165% premium to its purchase price back in 2007.
With its occupancy rate at 96.9% and a weighted average lease expiry (WALE) of three years, CICT offers stable and predictable income.
Critically, payouts have been on an uptrend, with total dividends rising from S$0.1088 in 2024 to S$0.1158 in 2025.
Lastly, a favourite of many dividend investors: DBS.
Driven by a period of high-interest-rates that boosted its net interest margin, the bank has seen substantial growth over the years.
Total income scaled new heights of $22.9 billion in 2025, an increase of 3% YoY.
Net interest income also grew to S$14.5 billion, despite the falling interest rates environment in 2025.
Shareholders hit a jackpot in 2025, with total dividend surging 38% YoY, reaching S$3.06 per share.
This payout was split between ordinary dividends of S$2.46 and capital return dividends of S$0.60.
The capital return dividend component is expected to continue for the next two financial years (2026 / 2027).
Having a high dividend yield does not necessarily mean it is sustainable.
Find a healthy balance between a solid current payout and the potential for the payout to grow over time.
Dividend growth rate is something you should look at because the company’s payouts should grow continuously so your income stays ahead of inflation.
Another crucial one is the payout ratio, which measures the percentage of earnings that is paid out as dividend.
Generally a ratio between 35% to 60% is ideal for long-term sustainability.
Since dividends are paid in cash, checking its free cash flow (FCF) is important too.
Having strong FCF proves that the dividends are really sustainable and not just for show.
Lastly, companies with too much debt can be a dividend killer.
Businesses with lower debt levels are more likely to keep your dividends steady even when times get tough.
Reinvesting your dividends allows you to buy more shares, which generates more dividends during the next round.
By retirement, you will have a stream of investment revenue all ready.
Nowadays, brokers offer the Dividend Reinvestment Plan (DRIP) which makes your life even easier.
You no longer need to lift a finger because your broker will automatically do it whenever there is a payout.
Along the way, you may make some mistakes.
Here’s a few you should look out for.
Yield traps, sometimes these attractive high yields are too good to be true because what initially seems like potential substantial payouts might end up as unsustainable.
Never buy a stock based on its dividend yield.
If a company’s fundamentals are shaky, even payouts can’t make up for its tanking price.
Avoid placing all your cash into the same sector.
Diversifying your picks across different industries so that one bad year for REITs or banks won’t kill your cash flow.
Pocketing payouts is the last thing you want to do.
At 25, we want that “cash ball” to move as fast as possible!
By building this income stream now, you’re placing yourself on the fast track towards a lifetime of passive payouts that grows along with you.
These growth may seem small during initial stages but your portfolio is just like humans, growth does not just happen overnight.
As long as you pick the right dividend stocks and stay the course, you’ll be on your way to financial freedom.
When the market corrects, most people see a crisis. We see an opportunity to apply a system.
While others are paralysed by mixed signals from the energy sector and tech stocks, we’re sticking to a practical framework that filters the noise.
Our Co-Founder, Chin Hui Leong is going live to show you exactly how he chooses businesses that thrive amid disruption. If you’re tired of guessing your next move, this is for you.
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