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Investing in dividend stocks is often pursued for the potential of steady income. However, the allure of dividends can be misleading if not carefully evaluated, especially when a company's dividend history shows a decline, as with Wing Tai Holdings. This article will compare two dividend stocks on the Singapore Exchange (SGX), highlighting why consistent dividend growth matters and pointing out where caution should be exercised.
Top 10 Dividend Stocks In Singapore
| Name | Dividend Yield | Dividend Rating |
| BRC Asia (SGX:BEC) | 7.11% | ★★★★★☆ |
| Multi-Chem (SGX:AWZ) | 8.44% | ★★★★★☆ |
| China Sunsine Chemical Holdings (SGX:QES) | 6.32% | ★★★★★☆ |
| Civmec (SGX:P9D) | 5.88% | ★★★★★☆ |
| Singapore Exchange (SGX:S68) | 3.53% | ★★★★★☆ |
| UOB-Kay Hian Holdings (SGX:U10) | 6.81% | ★★★★★☆ |
| UOL Group (SGX:U14) | 3.81% | ★★★★★☆ |
| Bumitama Agri (SGX:P8Z) | 6.66% | ★★★★★☆ |
| Singapore Airlines (SGX:C6L) | 6.85% | ★★★★★☆ |
| Sing Investments & Finance (SGX:S35) | 6.00% | ★★★★☆☆ |
Click here to see the full list of 20 stocks from our Top SGX Dividend Stocks screener.
Let's dive into one of the prime choices out of the screener and one to possibly skip over.
Top Pick
BRC Asia
Simply Wall St Dividend Rating: ★★★★★☆
Overview: BRC Asia Limited is a company that specializes in the prefabrication of steel reinforcement for concrete, operating across Singapore, Australia, Brunei, Hong Kong, Indonesia, Malaysia, Thailand, India and other international markets with a market capitalization of SGD 617.29 million.
Operations: The company generates revenue through two primary segments: Trading, which brought in SGD 319.71 million, and Fabrication and Manufacturing, accounting for SGD 1.35 billion.
Dividend Yield: 7.1%
BRC Asia Limited, trading at S$0.56 below estimated fair value, offers a compelling dividend yield of 7.11%, ranking in the top 25% of Singaporean dividend payers. Despite a volatile history, recent trends show improvement with an interim tax-exempt dividend announced for November 2024 at S$0.06 per share, reflecting confidence in sustained payouts supported by a payout ratio of 35.9% and cash flow coverage at 85.3%. This stability contrasts with competitors experiencing declining dividends, positioning BRC as a more reliable choice for consistent income.
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Click to explore a detailed breakdown of our findings in BRC Asia's dividend report.
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Our valuation report here indicates BRC Asia may be undervalued.
One To Reconsider
Wing Tai Holdings
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Wing Tai Holdings Limited operates as an investment holding company primarily focused on property investment and development across Singapore, Malaysia, Australia, Japan, China, and Hong Kong, with a market capitalization of approximately SGD 1.07 billion.