The Singapore market has been experiencing a period of robust activity, driven by advancements in technology and innovative startups such as Skyfire, which aims to revolutionize AI-driven transactions. In this dynamic environment, dividend stocks remain an attractive option for investors seeking steady income and potential growth.
Overview: Jardine Cycle & Carriage Limited (SGX:C07) is an investment holding company involved in various sectors including financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property businesses in Indonesia and internationally with a market cap of SGD10.91 billion.
Operations: Jardine Cycle & Carriage Limited generates revenue from diverse sectors such as financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property businesses.
Dividend Yield: 5.6%
Jardine Cycle & Carriage declared an interim dividend of US$0.28 per share for FY2024, reflecting a commitment to shareholder returns despite a volatile dividend history. Recent H1 2024 earnings showed sales of US$9.77 billion and net income of US$483.3 million, down from the previous year, yet dividends remain well-covered by both earnings (44.4% payout ratio) and cash flows (30.8% cash payout ratio). The stock trades at good value compared to peers but offers a relatively lower yield in the SG market at 5.59%.
Overview: Singapore Exchange Limited operates integrated securities and derivatives exchanges, related clearing houses, and an electricity market in Singapore with a market cap of SGD11.34 billion.
Operations: Singapore Exchange Limited generates revenue from four main segments: Equities - Cash (SGD334.94 million), Platform and Others (SGD240.20 million), Equities - Derivatives (SGD334.05 million), and Fixed Income, Currencies and Commodities (SGD322.50 million).
Dividend Yield: 3.4%
Singapore Exchange Limited reported FY2024 revenue of S$1.23 billion and net income of S$597.91 million, showing year-on-year growth. Earnings per share increased to S$0.559 from S$0.534, and dividends have been stable over the past decade with a current yield of 3.4%. The dividend payout ratio is 61.7%, indicating that payments are well-covered by earnings and cash flows (69.9%). Despite trading below fair value, its yield is lower than the top dividend payers in Singapore.
Overview: United Overseas Bank Limited, along with its subsidiaries, offers a range of banking products and services globally and has a market cap of SGD51.33 billion.
Operations: United Overseas Bank Limited's revenue segments consist of Group Retail (SGD5.11 billion), Global Markets (SGD400 million), and Group Wholesale Banking (SGD6.69 billion).
Dividend Yield: 5.7%
United Overseas Bank's (UOB) recent interim dividend of S$0.88 per share, representing a 51% payout ratio, highlights its commitment to returning capital to shareholders. Despite a stable payout ratio and covered dividends, UOB's dividend history has been volatile over the past decade. The bank reported net income of S$2.91 billion for H1 2024, slightly down from last year. Recent board changes may influence future strategies but don't directly impact current dividend stability or growth potential.
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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:C07 SGX:S68 and SGX:U11.
