The Singapore market remains active even as other major Asian markets like China, Japan, and South Korea are closed today. This presents a unique opportunity for investors to focus on dividend stocks that offer stability and attractive yields in the current economic landscape. A good dividend stock typically combines strong fundamentals with consistent payout history, making them appealing in times of market uncertainty. Here are three top SGX dividend stocks yielding up to 6.3%.
Overview: Oversea-Chinese Banking Corporation Limited (SGX:O39) provides financial services across Singapore, Malaysia, Indonesia, Greater China, the rest of the Asia Pacific, and internationally, with a market cap of SGD68.77 billion.
Operations: Oversea-Chinese Banking Corporation Limited generates revenue from Global Wholesale Banking (SGD5.23 billion), Global Consumer/Private Banking (SGD5.19 billion), Insurance (SGD1.27 billion), and Global Markets (SGD512 million).
Dividend Yield: 5.8%
Oversea-Chinese Banking Corporation Limited (OCBC) recently announced a fiscal year 2024 interim dividend of S$0.44 per share, reflecting its stable payout ratio of 52.8%. Despite earnings growth to S$3.93 billion for H1 2024 and consistent dividend increases over the past decade, OCBC's dividends have been volatile and below the top tier in Singapore. The bank's dividends are expected to remain covered by earnings in the next three years, ensuring sustainability despite past instability.
Overview: QAF Limited, with a market cap of SGD465.97 million, is an investment holding company involved in the manufacture and distribution of bread, bakery, and confectionery products across Singapore, Australia, the Philippines, Malaysia, and internationally.
Operations: QAF Limited generates revenue primarily from its Bakery segment (SGD460.50 million) and Distribution & Warehousing segment (SGD164.22 million).
Dividend Yield: 6.2%
QAF Limited announced an interim tax-exempt dividend of S$0.01 per share for FY2024, payable on 26 September 2024. Recent earnings showed significant improvement, with net income rising to S$12.48 million for H1 2024 from S$4.91 million a year ago. Despite stable dividends over the past decade, QAF's payout ratio stands at 82%, indicating coverage by earnings and cash flows but raising concerns about sustainability given historical volatility in dividend payments.
Overview: UOB-Kay Hian Holdings Limited, an investment holding company with a market cap of SGD1.36 billion, provides stockbroking, futures broking, structured lending, investment trading, margin financing, and nominee and research services in Singapore, Hong Kong, Thailand, Malaysia and internationally.
Operations: UOB-Kay Hian Holdings Limited generated SGD581.07 million from its Securities and Futures Broking and Other Related Services segment.
Dividend Yield: 6.3%
UOB-Kay Hian Holdings' dividend yield of 6.34% places it among the top 25% in Singapore, but its sustainability is questionable. The high cash payout ratio (100.1%) indicates dividends are not well covered by free cash flows, despite a reasonable earnings payout ratio (38.6%). Recent earnings surged to S$113.91 million for H1 2024 from S$69.32 million a year ago, yet significant insider selling and past dividend volatility raise concerns about reliability and future stability.
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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:O39 SGX:Q01 and SGX:U10.
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