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Dividend stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. However, undervalued dividend stocks also enhances your opportunity to gain from capital appreciation (an increase in share price) over time as well. If you’re a buy and hold investor, these undervalued dividend stocks can generously contribute to your portfolio value.
Valuetronics Holdings Limited (SGX:BN2)
Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in the United States, the People’s Republic of China, Poland, Canada, the Netherlands, and internationally. Valuetronics Holdings was started in 1992 and has a market cap of SGD SGD323.94M, putting it in the small-cap group.
Over the past 10 years, Valuetronics Holdings has been distributing dividends back to its shareholders, with a recent yield of 4.42%. BN2’s dividend per share have been growing over the past 10 years, with a payout ratio of 31.53%, indicating earnings are able to cover the payments. Furthermore, BN2’s dividend yield exceed Hong Kong’s low risk savings rate which currently sits at 2.15%. BN2 is also trading beneath its true value by 35.54%, meaning that now is a good time to buy BN2 at a good price. More detail on Valuetronics Holdings here.
Best World International Limited (SGX:CGN)
Best World International Limited develops, manufactures, and distributes skincare, personal care, nutritional, and wellness products. Best World International was started in 1990 and with the stock’s market cap sitting at SGD SGD814.47M, it comes under the small-cap group.
Over the past 10 years, Best World International has been distributing dividends back to its shareholders, with a recent yield of 3.51%. CGN’s dividend per share have been growing over the past 10 years, with a payout ratio of 40.53%, indicating earnings are able to cover the payments. Furthermore, CGN’s dividend yield exceed Singapore’s low risk savings rate which currently sits at 2.15%. In addition to this, CGN is also trading beneath its true value by 41.34%, which makes for an attractive investment. More on Best World International here.
Yangzijiang Shipbuilding (Holdings) Ltd. (SGX:BS6)
Yangzijiang Shipbuilding (Holdings) Ltd., an investment holding company, operates in the shipbuilding activities. Yangzijiang Shipbuilding (Holdings) was founded in 1956 and with the company’s market capitalisation at SGD SGD4.72B, we can put it in the mid-cap stocks category.