As global payment trends evolve, with a notable shift towards digital and contactless methods as seen in the UK's recent financial activities, investors might consider the stability offered by dividend stocks. In Singapore's dynamic market environment, these stocks can provide a consistent income stream which could be particularly appealing given current economic fluctuations.
Overview: YHI International Limited operates as an investment holding company that distributes automotive and industrial products across regions including Singapore, Malaysia, China, Hong Kong, Taiwan, Australia, New Zealand, and other international markets, with a market capitalization of SGD 140.02 million.
Operations: YHI International Limited generates revenue through several segments, with SGD 120.10 million from Distribution in ASEAN, SGD 47.72 million from Manufacturing in ASEAN, SGD 136.97 million from Distribution in Oceania, and SGD 57.87 million from Manufacturing in North East Asia (excluding rental).
Dividend Yield: 6.6%
YHI International, despite a recent dividend decrease to S$0.0315 per share as of April 2024, maintains a relatively sustainable payout with an earnings coverage ratio at 70.1% and a cash payout ratio at 26.6%. While the firm's dividends have shown growth over the past decade, they've also been marked by volatility and inconsistency in payments. Currently trading below its estimated fair value by 26.9%, YHI offers potential value albeit with noted instability in its dividend history.
Overview: Bumitama Agri Ltd. is an investment holding company based in Indonesia, specializing in the production and trade of crude palm oil and palm kernel, with a market capitalization of approximately SGD 1.26 billion.
Operations: Bumitama Agri Ltd. primarily generates revenue from its plantations and palm oil mills segment, totaling IDR 15.44 billion.
Dividend Yield: 6.5%
Bumitama Agri Ltd., with a dividend yield of 6.49%, positions itself above the Singapore market average. The company's dividends are supported by a payout ratio of 40.4% and a cash payout ratio of 60.8%, indicating reasonable coverage by both earnings and cash flows despite a history of volatility in dividend payments over the last decade. Recent board enhancements, including the appointment of Ms Ng Yi Wayn, aim to strengthen governance, potentially stabilizing future payouts.
Overview: Civmec Limited, an investment holding company based in Australia, offers construction and engineering services to sectors including energy, resources, infrastructure, and marine and defense, with a market capitalization of approximately SGD 479.67 million.
Operations: Civmec Limited generates revenue through its services in the energy sector (A$46.02 million), resources sector (A$752.82 million), and combined infrastructure, marine, and defense sectors (A$105.52 million).
Dividend Yield: 5.2%
Civmec Limited offers a modest dividend yield of 5.19%, slightly below the top quartile in Singapore's market. Its dividends are well-supported, with a payout ratio of 45.4% and a cash payout ratio of 27%, reflecting stable coverage from both earnings and cash flows over the past decade. Despite trading at 38.6% under its estimated fair value, recent significant contract awards totaling A$174 million bolster its operational outlook, potentially enhancing future dividend reliability and growth prospects.
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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:BPF SGX:P8Z and SGX:P9D.
