Don't Struggle in Old Age! Prepare for Retirement with These Consistent Dividend Stocks

Don’t Struggle in Old Age! Prepare for Retirement with These Consistent Dividend Stocks

Jakarta, CNBC Indonesia - Preparing retirement funds through capital market instruments requires careful planning and a focus on sustainable cash flow.

In the current market dynamics, the weakening prices of several large-cap stocks open opportunities for investors to accumulate at lower valuations.

This approach will mathematically increase the dividend yield percentage received by investors. Collecting stocks from issuers with a long track record of profit distribution is one of the most rational methods to secure passive income in the future.

Consistency of Dividend Distribution Across Decades

The main indicator of a company’s financial health is its ability to distribute cash to shareholders consistently across various economic cycles.

Several leading issuers on the Indonesia Stock Exchange have demonstrated this capacity for decades. In the consumer goods and automotive sectors, PT Astra International Tbk (ASII) has been distributing dividends since 1990.

This is followed by PT Unilever Indonesia Tbk (UNVR) and PT Hanjaya Mandala Sampoerna Tbk (HMSP) in 1992, as well as PT Indofood Sukses Makmur Tbk (INDF) since 1995.

In the financial and mining sectors, similar commitments are evident. PT Bank Negara Indonesia (Persero) Tbk (BBNI) began its dividend track record in 1997.

Subsequently, PT Bank Mandiri (Persero) Tbk (BMRI) and PT Bukit Asam Tbk (PTBA) followed in 2003, followed by PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) in 2004.

Meanwhile, energy issuers such as PT Indo Tambangraya Megah Tbk (ITMG) and PT Adaro Energy Indonesia Tbk (ADRO) began routinely distributing their respective cash in 2008 and 2009. This long track record provides the level of certainty needed by long-term investors.

Dividend Performance Throughout 2025 (Fiscal Year 2024)

In 2025, market attention is focused on the increase in dividend payout ratios from state-owned enterprise (BUMN) banking issuers that are members of Himbara.

This increase in profit distribution for the 2024 fiscal year is influenced by directives and asset optimisation under the oversight of the Danantara Investment Management Agency.

This policy encourages BBRI, BMRI, and BBNI to provide highly competitive returns, positioning the banking sector on par with fixed-income instruments with yields approaching or reaching double digits.

Outside of banking, the commodities sector such as ITMG, ADRO, and PTBA continues to maintain high dividend distributions. Meanwhile, the consumer sector continues to provide stability to portfolios with moderate but measured yields.

Dividend Performance Throughout 2024 (Fiscal Year 2023)

Dividend performance in 2024 was marked by high cash liquidity in several commodity issuers and conglomerates. ADRO recorded a very high yield due to a special dividend policy as part of internal cash turnover strategy and operational restructuring.

ITMG and ASII also contributed significantly to the total investor cash returns in that year. During this period, banking issuers recorded stable yields in line with sustained credit growth.

Dividend Performance Throughout 2023 (Fiscal Year 2022)

2023 reflected the direct impact of the global commodity price peak cycle that occurred in the 2022 fiscal year. Coal mining issuers such as ITMG, ADRO, and PTBA distributed very large profits, providing yields above their historical averages.

In contrast, banking issuers in that year preferred to retain most of their profits to strengthen provisioning and capital adequacy ratios post-economic recovery, resulting in relatively lower yields compared to subsequent years.

Preparing a stock portfolio for retirement is essentially an effort to build a stable and measured income source. By leveraging the dividend track records of major issuers and allocating capital strategically during market corrections, investors can accelerate asset accumulation.

The yields from these issuers, both from defensive and cyclical sectors, can be reinvested to strengthen long-term financial foundations.