In the current financial landscape, markets are demonstrating a cyclical nature, with risk appetite appearing to rebound after a period of restraint. As this positive shift takes hold, it becomes increasingly apparent that not all stocks will benefit equally from a market upswing. Identifying which stocks are likely to thrive in this environment is critical for investors looking to maximize their returns.
One significant player in this arena is SGX, Singapore’s only approved stock exchange, which has established a reputation as a long-term dividend income investment. The exchange’s robust market position allows it to generate substantial cash flows with minimal capital outlay. In its fiscal first half of 2026 (1HFY2026), SGX reported a remarkable 10.1% year-on-year increase in net revenue, climbing to S$636.6 million from S$578.0 million the previous year. The company’s adjusted net profit also showed strong growth, rising 11.6% to S$357.1 million from S$320.1 million in the same period last year.
Reflecting this positive performance, SGX’s board declared an interim quarterly dividend of S$0.110 per share, elevating total dividends for the first half to S$0.2175—an impressive 20.8% year-on-year increase. The adjusted payout ratio stands at approximately 65%, supported by a robust free cash flow of S$773.6 million for FY2025. Currently, SGX trades at a trailing price-to-earnings (P/E) ratio of around 29.0 times, presenting an attractive investment opportunity for those anticipating a stock market recovery.
SATS has also begun to rebound in alignment with improving economic activity, particularly as global air travel resumes post-pandemic. This recovery is underscored by a 9.1% increase in revenue for 1HFY2026 compared to 1HFY2025, totaling S$3.08 billion. Its net profit for the same period rose by 11.2% to S$149.8 million from S$134.7 million the previous year. The company announced an interim dividend of S$0.02 per share, reflecting a 33% increase from S$0.015 per share a year earlier. However, potential constraints from rising inflation and a possible economic slowdown may limit SATS’ upside. Still, it remains a viable option for investors keen on capitalizing on the air travel and aviation services sectors.
In the realm of real estate investment trusts (REITs), Frasers Centrepoint Trust (FCT) stands out for its defensiveness and predictable income, primarily driven by its suburban retail malls that cater to daily consumer needs. As of December 31, 2025, 97.3% of FCT’s portfolio consisted of retail malls, with offices making up the remainder. With S$421.3 million in debt maturing in FY2026, FCT is positioned to benefit from potential refinancing at lower rates. The trust has consistently paid dividends since 2006, recently increasing its distribution per unit (DPU) by 0.6% year-on-year to S$0.12113 for FY2025. As interest rates decline, FCT is well-equipped to navigate lower borrowing costs.
iFAST Corporation is another emerging contender in Singapore’s fintech sector, enjoying remarkable growth fueled by increasing assets under administration (AUA) and recurring fee income. The company is actively pursuing strategic growth initiatives, including the rollout of Hong Kong’s eMPF and expansion into digital banking. iFAST’s gross revenue for the third quarter of 2025 surged by 37% year-on-year to reach S$135.82 million, while its net profit increased by 54.7% to S$26.01 million. An interim dividend of S$0.023 per share reflects a 53% increase from a year ago, with guidance indicating a potential payout of S$0.082 for FY2025—signifying growing confidence in its cash flow stability.
As the market enters this recovery phase, a broad-based participation is essential for sustainability. Investors should look for firms whose earnings solidify rising stock prices and monitor consistent improvements in economic indicators and corporate performances. Adopting a balanced and diversified portfolio is advisable to manage market fluctuations effectively while remaining vigilant about market conditions.
Ultimately, successful navigation of market rallies relies on discerning quality stocks backed by solid fundamentals rather than chasing fleeting momentum. Effectively positioned companies will allow investors to maintain their investment strategies through varying market cycles, emphasizing that preparation and a clear understanding of each business’s resilience are key to enduring market fluctuations.
