A dividend yield exceeding 5% is typically sufficient to pique an investor's interest.

The rationale is clear: consistent passive income can significantly enhance long-term investment returns.

However, not every stock with a high yield is a worthwhile purchase.

Some companies can maintain their dividends due to robust cash flows and solid business operations.

Others may struggle to sustain payouts during challenging economic periods.

With this in mind, we examine three Singapore-listed stocks currently offering dividends above 5%, assessing the sustainability of their payouts.

Characteristics of a Reliable Dividend Stock

A high dividend yield may seem appealing at first glance, but it often fails to provide a complete picture.

Sometimes, a company's share price declines due to concerns about its future, artificially inflating the apparent dividend yield.

In reality, dividends are paid from cash, not accounting profits.

Firms that consistently generate strong cash flow are generally better positioned to maintain and potentially increase their dividends over the long term.

The strength of a company's balance sheet is also crucial during economic downturns.

Companies with lower debt levels typically have more flexibility to navigate uncertain times without resorting to dividend cuts.

ComfortDelGro – A Dividend Recovery Narrative

ComfortDelGro has evolved into a global land transport operator with a presence across multiple markets, and FY2025 represented another significant year for the group.

Revenue surpassed S$5 billion for the first time, increasing 13.0% year-on-year to S$5.06 billion, while net profit grew 9.4% to S$230.3 million.

The company paid a total FY2025 dividend of S$0.085 per share, up from S$0.077 the previous year.

This payout represents 80% of profits and translates to a current dividend yield of approximately 6.5%.

The key question is whether ComfortDelGro can maintain earnings growth amid persistent competitive pressures across its markets.

Keppel REIT – An Office-Focused Income Opportunity

Keppel REIT is a leading Singapore-based real estate investment trust focused on office properties, with a portfolio of high-quality commercial assets across the Asia-Pacific region.

Occupancy stood at 97.1% as of March 31, 2026, with a weighted average lease expiry of 4.4 years.

For FY2025, the REIT reported a distribution per unit of S$0.0523, equating to an annualised yield of around 6%.

Its aggregate leverage was 40.2% as of March 31, 2026, below the Monetary Authority of Singapore's 50% limit, providing regulatory headroom to manage property market volatility.

The investment thesis is not without risks, as office demand remains uncertain and higher interest rates could pressure financing costs over time.

NetLink NBN Trust – Generating Income from Infrastructure

NetLink NBN Trust manages and maintains the fibre broadband network infrastructure that forms the backbone of Singapore's telecommunications system.

The trust's defensive business model continued to deliver stable results in FY2026.

Revenue increased 1.6% year-on-year to S$413.4 million.

EBITDA reached S$282.9 million, representing a margin of approximately 68%.

Although this margin decreased slightly by 1.8% year-on-year due to higher operational costs, it still reflects the strong cash-generative nature of the underlying infrastructure.

In FY2026, the trust increased its DPU by 1.1% to S$0.0542, supported by stable operations and sustained demand for broadband connectivity.

NetLink NBN Trust is not positioned for high growth, but investors may accept slower growth in exchange for the stability provided by owning essential infrastructure.

Evaluating the Most Appealing Stock

A stock that may be attractive for its blend of income and earnings growth potential is ComfortDelGro, which has benefited from rising commuter traffic and international expansion.

Keppel REIT might appeal to investors seeking rental income from a portfolio of premium office assets.

While the office sector faces challenges, the REIT's high occupancy and long lease terms offer some visibility into future cash flows.

Meanwhile, NetLink NBN Trust presents a different proposition.

Growth is expected to be modest, but the company owns critical infrastructure relied upon by numerous households and businesses, and this predictability is a valuable characteristic in itself.

A Note of Prudence

Not every high-yield opportunity is worth pursuing.

In some instances, a yield appears attractive only because the share price has experienced a significant decline.

A sustainable dividend that grows over time can often deliver better returns than a higher payout that is eventually reduced.

This is a key reason many investors diversify their holdings across several dividend-paying stocks rather than concentrating on a single income source.

Invest Wisely: Avoid Blindly Pursuing Yield

ComfortDelGro, Keppel REIT, and NetLink NBN Trust all offer dividend yields above 5%, but these figures only tell part of the story.

The essential consideration is whether the underlying businesses can generate sufficient cash flow to support these payouts over the long term.

For long-term investors, understanding this distinction is often far more important than simply chasing the highest yield available in the market.