In This Article:
In the pursuit of reliable dividend stocks on the Singapore Exchange, investors often encounter a mix of opportunities. However, it's crucial to scrutinize whether high dividend yields are supported by sustainable financial practices. For instance, companies like Olam Group with excessively high payout ratios might pose risks, suggesting potential overextension rather than financial robustness. This article will compare two such companies to help investors make informed choices.
Top 10 Dividend Stocks In Singapore
| Name | Dividend Yield | Dividend Rating |
| BRC Asia (SGX:BEC) | 6.99% | ★★★★★☆ |
| Multi-Chem (SGX:AWZ) | 8.50% | ★★★★★☆ |
| UOL Group (SGX:U14) | 3.80% | ★★★★★☆ |
| UOB-Kay Hian Holdings (SGX:U10) | 6.81% | ★★★★★☆ |
| Bumitama Agri (SGX:P8Z) | 6.71% | ★★★★★☆ |
| Civmec (SGX:P9D) | 5.66% | ★★★★★☆ |
| Singapore Exchange (SGX:S68) | 3.55% | ★★★★★☆ |
| Singapore Airlines (SGX:C6L) | 6.88% | ★★★★★☆ |
| YHI International (SGX:BPF) | 6.77% | ★★★★★☆ |
| Sing Investments & Finance (SGX:S35) | 6.00% | ★★★★☆☆ |
Click here to see the full list of 21 stocks from our Top SGX Dividend Stocks screener.
Let's explore one of the standout options from the results in the screener and examine one not meeting the grade.
Top Pick
Aztech Global
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Aztech Global Ltd. operates in the research, development, engineering, and manufacturing of IoT devices, data-communication products, and LED lighting across various global markets including Singapore, North America, China, and Europe with a market capitalization of approximately SGD 0.77 billion.
Operations: The company generates its revenue primarily from the production and sale of IoT devices, data-communication products, and LED lighting.
Dividend Yield: 8%
Aztech Global, despite a volatile dividend history over its short 3-year payout period, shows promise with a current yield of 8.04%, ranking in the top quartile within the Singapore market. The firm's dividends are well-supported with a payout ratio of 61.7% and a cash payout ratio of 77.9%, ensuring sustainability from both earnings and cash flow perspectives. Recent earnings growth at 53.7% year-over-year and positive forecasts suggest potential stability ahead, contrasting sharply with firms facing overly high payout issues.
One To Reconsider
Olam Group
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Olam Group Limited is a global agribusiness company specializing in the sourcing, processing, packaging, and merchandising of agricultural products, with a market capitalization of approximately SGD 4.29 billion.