The Singapore market has been navigating a landscape of economic resilience and cautious optimism, with the Straits Times Index reflecting a stable yet vigilant investor sentiment. Amidst this backdrop, dividend stocks have garnered significant attention for their potential to provide steady income streams and capital preservation. In such an environment, identifying robust dividend stocks can be crucial for investors seeking both stability and consistent returns. Here are three SGX-listed dividend stocks that stand out in the current market climate.
Overview: The Hour Glass Limited, an investment holding company with a market cap of SGD1.02 billion, is involved in the retailing and distribution of watches, jewelry, and other luxury products across Singapore, Hong Kong, Japan, Australia, New Zealand, Malaysia, Thailand, and Vietnam.
Operations: The company's revenue from retailing and distributing watches, jewelry, and other luxury products amounts to SGD1.13 billion.
Dividend Yield: 5.1%
The Hour Glass Limited recently approved a final dividend of S$0.06 per share, indicating consistent payouts covered by earnings (payout ratio: 33.5%) and cash flows (cash payout ratio: 46.2%). However, its dividends have been volatile over the past decade, with periods of significant drops. The company also initiated a share repurchase program authorized to buy back up to 64.83 million shares, enhancing shareholder value despite its relatively low dividend yield compared to top-tier payers in Singapore.
Overview: Delfi Limited, with a market cap of SGD510.32 million, manufactures, markets, distributes, and sells chocolate and chocolate confectionery products in Indonesia, the Philippines, Malaysia, Singapore, and internationally.
Operations: Delfi Limited generates revenue of $349.57 million from Indonesia and $183.30 million from its Regional Markets segment.
Dividend Yield: 6.7%
Delfi Limited has a dividend yield of 6.67%, placing it in the top 25% of Singapore's market, but its payments have been volatile over the past decade. The recent interim dividend decreased slightly to S$0.0272 per share for H1 2024. Despite a reasonable payout ratio (57.2%), high cash payout ratios (750.7%) indicate dividends are not well covered by free cash flows, raising concerns about sustainability amid declining earnings and sales figures for H1 2024.
Overview: China Sunsine Chemical Holdings Ltd. is an investment holding company that manufactures and sells specialty chemicals globally, with a market cap of SGD419.58 million.
Operations: China Sunsine Chemical Holdings Ltd.'s revenue segments include Rubber Chemicals (CN￥4.39 billion), Heating Power (CN￥202.99 million), and Waste Treatment (CN￥25.06 million).
Dividend Yield: 5.5%
China Sunsine Chemical Holdings reported H1 2024 earnings with sales of CNY 1.75 billion and net income of CNY 188.8 million, slightly down from the previous year. The company's dividends are well-covered by earnings (21.1% payout ratio) and cash flows (34% cash payout ratio), though its dividend history has been volatile over the past decade. Trading at a significant discount to estimated fair value, it offers a lower yield compared to top-tier dividend payers in Singapore.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SGX:AGS SGX:P34 and SGX:QES.
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