As of July 2024, the Singapore market continues to attract attention with its stable performance amidst global economic fluctuations. This resilience makes it an appealing arena for investors looking for reliable dividend stocks. In the current climate, a good dividend stock not only offers attractive yield but also demonstrates strong fundamentals and consistent performance, aligning well with the ongoing stability in Singapore's market conditions.
Overview: Aztech Global Ltd. operates in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting products across regions including Singapore, North America, China, and Europe with a market capitalization of approximately SGD 0.78 billion.
Operations: Aztech Global Ltd. generates revenue primarily from the sale of IoT devices, data-communication products, and LED lighting solutions.
Dividend Yield: 7.9%
Aztech Global trades at 66% below its estimated fair value, suggesting potential for price appreciation. Despite a high dividend yield of 7.92%, ranking in the top 25% of Singapore's market, its dividend history is marked by instability and volatility, with dividends only initiated in the past three years. Earnings have shown significant growth at 53.7% last year and are expected to grow by 7.48% annually. However, the company's dividend track record remains unstable with a payout ratio at 61.7% and cash payout ratio at 77.9%, indicating that while current dividends are covered by earnings and cash flows, past payments have been inconsistent.
Overview: The Hour Glass Limited operates as an investment holding company specializing in the retail and distribution of watches, jewelry, and other luxury products across Singapore, Hong Kong, Japan, Australia, New Zealand, Malaysia, Thailand, and Vietnam with a market capitalization of approximately SGD 1.02 billion.
Operations: The Hour Glass Limited generates SGD 1.13 billion primarily through the retail and distribution of watches, jewelry, and luxury items across multiple Asian and Oceanic markets.
Dividend Yield: 5.1%
Hour Glass has announced a consistent final dividend of 6.00 cents per share for FY 2024, maintaining the previous year's level, with a total payout of SGD 38.99 million. Despite its low dividend yield of 5.1% compared to the top quartile in Singapore, the dividends are well-supported by a modest payout ratio of 33.5% and cash flow coverage at 46.2%. However, its dividend history has been marked by volatility over the past decade, reflecting some inconsistency in payments despite recent stability. The company also initiated a share repurchase program on July 29, signaling potential confidence in its financial health or an attempt to return value to shareholders amidst relatively lower market valuation with a P/E ratio of just 6.5x against the broader Singapore market average of 11.9x.
Overview: Civmec Limited, an investment holding company headquartered in Australia, offers construction and engineering services across the energy, resources, infrastructure, and marine and defense sectors with a market capitalization of approximately SGD 505.05 million.
Operations: Civmec Limited generates its revenue primarily from three segments: energy (A$46.02 million), resources (A$752.82 million), and infrastructure, marine & defense (A$105.52 million).
Dividend Yield: 4.9%
Civmec maintains a stable dividend yield of 4.87%, supported by a healthy payout ratio of 45.4% and cash flow coverage at 27%. Over the past decade, dividends have shown growth, aligning with Civmec's consistent earnings expansion at an annual rate of 37.3% over the past five years. Despite trading 33.8% below its estimated fair value, its dividend yield is modest compared to Singapore's top dividend payers. Recent strategic alliances and significant contract awards underline potential for sustained operational scale and financial 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:8AZ SGX:AGS and SGX:P9D.
