One of the best paying dividend stock on our list is Valuetronics Holdings. Dividend stocks are a great way to hedge your portfolio as they provide both steady income and cushion against market risks Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. If you’re a long term investor, these high-performing top dividend stocks can boost your monthly portfolio income.

Valuetronics Holdings Limited (SGX:BN2)

Valuetronics Holdings Limited, an investment holding company, provides integrated electronics manufacturing services (EMS) in the United States, the People’s Republic of China, Poland, Canada, the Netherlands, and internationally. Valuetronics Holdings was established in 1992 and has a market cap of SGD SGD414.04M, putting it in the small-cap group.

BN2 has a solid dividend yield of 3.46% and their current payout ratio is 31.53% , and analysts are expecting a 44.36% payout ratio in the next three years. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from HK$0.0099 to HK$0.033 over the past 10 years. More detail on Valuetronics Holdings here.

UMS Holdings Limited (SGX:558)

UMS Holdings Limited, an investment holding company, provides high precision front-end semiconductor components, and electromechanical assembly and final testing services. UMS Holdings was formed in 2001 and with the company’s market cap sitting at SGD SGD697.36M, it falls under the small-cap category.

558 has a sumptuous dividend yield of 4.31% and distributes 47.42% of its earnings to shareholders as dividends , and analysts are expecting the payout ratio in three years to hit 66.64%. Despite there being some hiccups, dividends per share have increased during the past 10 years. Dig deeper into UMS Holdings here.

M1 Limited (SGX:B2F)

M1 Limited, together with its subsidiaries, provides mobile and fixed communications services in Singapore. Started in 1994, and headed by CEO Lee Wah Kooi, the company provides employment to 1,515 people and with the company’s market cap sitting at SGD SGD1.65B, it falls under the small-cap category.

B2F has an appealing dividend yield of 6.40% and their current payout ratio is 79.86% , and analysts are expecting a 89.05% payout ratio in the next three years. Despite there being some hiccups, dividends per share have increased during the past 10 years. M1 is also reasonably priced, with a PE ratio of 12.5 that compares favorably with the Global Wireless Telcom average of 17.6. Dig deeper into M1 here.

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers. Or create your own list by filtering SGX companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.