The Singapore stock market has been navigating a period of heightened volatility, influenced by global economic uncertainties and technological disruptions. Amidst these fluctuations, dividend stocks have emerged as a stable investment option, offering consistent returns through regular payouts.
Overview: Multi-Chem Limited, with a market cap of SGD245.96 million, is an investment holding company that distributes information technology products in Singapore, Greater China, Australia, India, and internationally.
Operations: Multi-Chem Limited generates revenue from distributing information technology products across various regions, including SGD407.17 million from Singapore's IT business, SGD54.17 million from India's IT business, SGD50.04 million from Australia's IT business, and SGD135.87 million from other international IT businesses, along with SGD1.69 million from Singapore's PCB business and a segment adjustment of SGD38.87 million.
Dividend Yield: 9.7%
Multi-Chem's dividend yield of 9.74% is among the top 25% in Singapore, but its sustainability is questionable due to a high cash payout ratio of 1054.3%. While dividends have grown over the past decade, they have been volatile and not reliably covered by free cash flows. Recent earnings growth is strong, with net income rising to S$16.42 million for H1 2024 from S$11.41 million a year ago, supporting an interim dividend increase to S$0.111 per share.
Overview: Sheng Siong Group Ltd, with a market cap of SGD 2.27 billion, operates a chain of supermarket retail stores in Singapore.
Operations: Sheng Siong Group Ltd generates revenue primarily through its supermarket operations, selling consumer goods amounting to SGD 1.39 billion.
Dividend Yield: 4.1%
Sheng Siong Group's dividend payments are covered by both earnings (payout ratio: 69.6%) and free cash flows (cash payout ratio: 51.8%). Although dividends have increased over the past decade, they have been volatile, with significant annual drops. The company trades at 59.1% below its estimated fair value and reported H1 2024 sales of S$714.2 million, up from S$690.48 million a year ago, with net income rising to S$69.91 million from S$65.36 million.
Overview: Bumitama Agri Ltd. is an investment holding company involved in the production and trade of crude palm oil, palm kernel, and related products for refineries in Indonesia with a market cap of SGD1.31 billion.
Operations: Bumitama Agri Ltd. generates revenue primarily from its Plantations and Palm Oil Mills segment, amounting to IDR15.55 trillion.
Dividend Yield: 6.4%
Bumitama Agri's dividend payments are covered by earnings (payout ratio: 47.2%) and cash flows (cash payout ratio: 54.8%). Despite a top-tier dividend yield of 6.37%, the company has an unstable dividend track record over the past decade, with recent decreases in interim dividends to S$0.012 per share. H1 2024 net income fell to IDR 856.79 million from IDR 1,188.89 million a year ago, reflecting potential challenges ahead for consistent payouts.
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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:AWZ SGX:OV8 and SGX:P8Z.
