Top 3 SGX Dividend Stocks To Enhance Your Portfolio

The Singapore market has remained resilient despite recent global disruptions, such as the temporary isolation of over 200 cooperative and regional rural banks in India due to a ransomware attack. In this context, dividend stocks can offer stability and consistent income, making them an attractive option for investors looking to enhance their portfolios amidst uncertain times.

Top 10 Dividend Stocks In Singapore

Name	Dividend Yield	Dividend Rating
BRC Asia (SGX:BEC)	7.08%	★★★★★☆
UOB-Kay Hian Holdings (SGX:U10)	6.67%	★★★★★☆
China Sunsine Chemical Holdings (SGX:QES)	6.46%	★★★★★☆
Multi-Chem (SGX:AWZ)	8.71%	★★★★★☆
UOL Group (SGX:U14)	3.73%	★★★★★☆
Bumitama Agri (SGX:P8Z)	6.55%	★★★★★☆
Singapore Exchange (SGX:S68)	3.48%	★★★★★☆
Singapore Airlines (SGX:C6L)	7.86%	★★★★★☆
Civmec (SGX:P9D)	5.17%	★★★★★☆
YHI International (SGX:BPF)	6.49%	★★★★★☆

Click here to see the full list of 21 stocks from our Top SGX Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Multi-Chem (SGX:AWZ)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Multi-Chem Limited, with a market cap of SGD251.37 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 its IT business in Singapore (SGD 372.78 million), Australia (SGD 54.60 million), India (SGD 40.56 million), and Greater China (SGD 34.96 million), along with its PCB business in Singapore (SGD 1.79 million).

Dividend Yield: 8.7%

Multi-Chem's dividend payout ratio stands at 80.7%, indicating dividends are well-covered by earnings, and a cash payout ratio of 88.1% suggests coverage by free cash flows. Although the company has seen a significant earnings growth of 35.6% over the past year, its dividend track record is unstable and has been volatile with annual drops exceeding 20%. Despite these issues, Multi-Chem's current dividend yield is among the top 25% in Singapore’s market.

• Get an in-depth perspective on Multi-Chem's performance by reading our dividend report here.
• According our valuation report, there's an indication that Multi-Chem's share price might be on the cheaper side.

DBS Group Holdings (SGX:D05)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: DBS Group Holdings Ltd offers commercial banking and financial services across Singapore, Hong Kong, Greater China, South and Southeast Asia, and internationally with a market cap of SGD100.43 billion.

Operations: DBS Group Holdings Ltd generates revenue from commercial banking and financial services across its key markets, including Singapore, Hong Kong, Greater China, South and Southeast Asia, as well as international operations.

Dividend Yield: 5.6%

DBS Group Holdings maintains a reasonable payout ratio of 50.8%, ensuring dividends are currently covered by earnings and forecasted to be covered in three years (67%). However, its dividend payments have been volatile over the past decade. Despite recent earnings growth of 16.7%, DBS's dividend yield (5.56%) is lower than the top 25% in the SG market. Recent executive changes aim to address technology issues, potentially impacting future operational stability and performance.

• Click to explore a detailed breakdown of our findings in DBS Group Holdings' dividend report.
• In light of our recent valuation report, it seems possible that DBS Group Holdings is trading behind its estimated value.

Delfi (SGX:P34)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Delfi Limited (SGX:P34) is an investment holding company that manufactures, markets, distributes, and sells chocolate and consumer products in Southeast Asia and internationally, with a market cap of SGD522.54 million.

Operations: Delfi Limited generates revenue from its operations in Indonesia ($370.41 million) and Regional Markets ($185.07 million).

Dividend Yield: 6.7%

Delfi's dividend yield of 6.7% is among the top 25% in Singapore, but its payments have been volatile over the past decade and are not well covered by free cash flows (1776.7% cash payout ratio). While earnings grew by 5.4% last year and are forecasted to grow annually by 3.07%, high non-cash earnings raise concerns about quality. Delfi plans to report Q1, 2024 results on May 28, which may provide further insights into its financial health.

• Take a closer look at Delfi's potential here in our dividend report.
• Our expertly prepared valuation report Delfi implies its share price may be lower than expected.

Turning Ideas Into Actions

• Dive into all 21 of the Top SGX Dividend Stocks we have identified here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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