The Singapore market has been navigating a landscape of digital transformation, with platforms like Primary Portal streamlining equity capital market processes and enhancing connectivity between asset managers and banks. In such an evolving environment, dividend stocks can offer stability and consistent returns, making them a valuable addition to any portfolio.
Overview: Multi-Chem Limited, an investment holding company with a market cap of SGD245.96 million, distributes information technology products in Singapore, Greater China, Australia, India, and internationally.
Operations: Multi-Chem Limited generates revenue from distributing information technology products in various regions, including SGD372.78 million from Singapore's IT Business, SGD54.60 million from Australia's IT Business, SGD40.56 million from India's IT Business, and SGD34.96 million from Greater China's IT Business, alongside SGD1.79 million from Singapore's PCB Business.
Dividend Yield: 8.9%
Multi-Chem Limited's dividend payments are covered by earnings (payout ratio: 80.7%) and cash flows (cash payout ratio: 88.1%), though they have been volatile over the past decade. Recent board changes, including the appointment of Chong Teck Sin as Chairman, may impact governance positively. Despite a strong earnings growth of 35.6% last year and a high dividend yield in Singapore's market, its dividend reliability remains questionable due to historical volatility.
Overview: Jardine Cycle & Carriage Limited, an investment holding company, operates in financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property sectors in Indonesia and internationally with a market cap of SGD9.98 billion.
Operations: Jardine Cycle & Carriage Limited generates revenue primarily from its Astra segment, which accounts for $20.61 billion, and its Direct Motor Interests segment, contributing $1.63 billion.
Dividend Yield: 6.3%
Jardine Cycle & Carriage's dividends are well covered by earnings (payout ratio: 38.4%) and cash flows (cash payout ratio: 49.7%), but they have been volatile over the past decade. Despite a high dividend yield in Singapore's market, the company's forecasted earnings decline of 4.1% per year for the next three years raises concerns about future sustainability. Recent board changes, including John Witt's appointment as Chairman effective August 2024, may impact governance positively.
Overview: Food Empire Holdings Limited, with a market cap of SGD526.17 million, is an investment holding company that manufactures and distributes food and beverages in Russia, Ukraine, Kazakhstan and CIS markets, South-East Asia, South Asia, and internationally.
Operations: Food Empire Holdings Limited generates revenue from several key regions, including Russia ($152.42 million), South-East Asia ($239.74 million), South Asia ($68.36 million), and Ukraine, Kazakhstan and CIS markets ($110.74 million).
Dividend Yield: 4.9%
Food Empire Holdings' dividends are well covered by earnings (payout ratio: 35.2%) and cash flows (cash payout ratio: 50.6%), but have been volatile over the past decade. The company recently announced a special dividend of S$0.05 per share for FY2023 and has ongoing business expansion plans, including a new coffee-mix production facility in Kazakhstan with an initial investment of US$30 million, potentially enhancing future revenue streams.
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.
