As of July 2024, the Singapore market continues to display resilience, mirroring trends seen in other global financial hubs with robust performances in key sectors. In this context, dividend stocks remain a focal point for investors seeking stable returns amid fluctuating market conditions.
Overview: Multi-Chem Limited is an investment holding company that distributes information technology products across regions including Singapore, Greater China, Australia, and India, with a market capitalization of SGD 274.79 million.
Operations: Multi-Chem Limited generates revenue primarily through its IT business in Singapore (SGD 372.78 million), followed by other international markets (SGD 153.93 million), Australia (SGD 54.60 million), India (SGD 40.56 million), and Greater China (SGD 34.96 million).
Dividend Yield: 8%
Multi-Chem Limited, a Singapore-based company, has a dividend yield of 7.97%, ranking in the top 25% of dividend payers in the local market. The company's dividends are supported by earnings and cash flows, with an earnings payout ratio of 80.7% and a cash payout ratio of 88.1%. However, its dividend track record over the past decade has been unstable and unreliable due to volatility in payments. Recently, Multi-Chem strengthened its governance structure by appointing Chong Teck Sin as Chairman and reconstituting board committees effective from April 30, 2024.
Overview: Jardine Cycle & Carriage Limited operates as an investment holding company with diversified interests in financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property across Indonesia and globally; it has a market capitalization of approximately SGD 10.14 billion.
Operations: Jardine Cycle & Carriage generates revenue primarily through its Astra segment, which brought in SGD 20.61 billion, and its Direct Motor Interests, contributing SGD 1.63 billion.
Dividend Yield: 6.2%
Jardine Cycle & Carriage has a dividend yield of 6.17%, placing it among the top 25% of dividend payers in Singapore. Despite this, its dividend history over the past decade has been marked by instability and volatility, with no growth in payments. The dividends are well-covered by both earnings and cash flows, with payout ratios of 38.4% and 49.7% respectively, suggesting sustainability from a financial perspective. However, earnings are expected to decline annually by 4.1% over the next three years, which could pressure future payouts. Recently, shareholders approved an increased final dividend of US$0.90 per share for fiscal year 2023 at their AGM on April 29, 2024.
Overview: Food Empire Holdings Limited is a Singapore-based investment holding company specializing in the manufacture and distribution of food and beverage products across regions including Russia, Ukraine, Kazakhstan, CIS markets, Southeast Asia, South Asia, and globally; it has a market capitalization of approximately SGD 536.70 million.
Operations: Food Empire Holdings Limited generates revenue primarily from South-East Asia with SGD 239.74 million, followed by Russia at SGD 152.42 million, South Asia contributing SGD 68.36 million, and Ukraine, Kazakhstan, and other CIS markets at SGD 110.74 million.
Dividend Yield: 4.8%
Food Empire Holdings, while trading 77.6% below estimated fair value, exhibits a volatile dividend history with a recent special dividend of SGD 0.05 per share and an unstable track record over the past decade. Despite this, dividends are supported by earnings and cash flows with payout ratios of 35.2% and 50.6%, respectively. Recent strategic moves include a US$30 million investment in a new Kazakh production facility expected to enhance future capacity and revenue by late 2025, alongside a private placement raising $40 million for further growth initiatives.
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:AWZ SGX:C07 and SGX:F03.
