Top 3 SGX Dividend Stocks To Enhance Your Portfolio

As the Singapore market continues to navigate a complex economic landscape, investors are increasingly focusing on stable income-generating opportunities, with dividend stocks gaining significant attention. In this environment, identifying robust dividend-paying stocks can be a strategic move to enhance portfolio stability and generate consistent returns.

Top 10 Dividend Stocks In Singapore

Name	Dividend Yield	Dividend Rating
BRC Asia (SGX:BEC)	6.69%	★★★★★☆
Bumitama Agri (SGX:P8Z)	6.39%	★★★★★☆
Singapore Airlines (SGX:C6L)	7.51%	★★★★★☆
YHI International (SGX:BPF)	6.30%	★★★★★☆
Singapore Exchange (SGX:S68)	3.10%	★★★★★☆
QAF (SGX:Q01)	5.99%	★★★★★☆
Aztech Global (SGX:8AZ)	9.71%	★★★★☆☆
Oversea-Chinese Banking (SGX:O39)	5.80%	★★★★☆☆
Delfi (SGX:P34)	6.61%	★★★★☆☆
Tai Sin Electric (SGX:500)	5.88%	★★★★☆☆

Click here to see the full list of 20 stocks from our Top SGX Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Multi-Chem (SGX:AWZ)

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

Overview: Multi-Chem Limited is an investment holding company that distributes information technology products across Singapore, Greater China, Australia, India, and internationally with a market cap of SGD245.96 million.

Operations: Multi-Chem Limited generates revenue primarily from its IT Business in Singapore (SGD407.17 million), followed by contributions from the Others - IT Business (SGD135.87 million), India - IT Business (SGD54.17 million), and Australia - IT Business (SGD50.04 million), along with a smaller segment from the PCB Business in Singapore (SGD1.69 million).

Dividend Yield: 9.7%

Multi-Chem's recent announcement of an interim dividend of S$0.111 per share highlights its position among top-tier dividend payers in Singapore, with a yield of 9.74%. However, the sustainability is questionable due to a high cash payout ratio exceeding 1000%, indicating dividends are not well-covered by free cash flows. Despite this, earnings have grown significantly by S$5 million year-over-year, and the payout ratio remains reasonable at 74.6%, suggesting coverage by earnings but not cash flow stability.

• Take a closer look at Multi-Chem's potential here in our dividend report.
• Our expertly prepared valuation report Multi-Chem implies its share price may be too high.

Boustead Singapore (SGX:F9D)

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

Overview: Boustead Singapore Limited is an investment holding company that offers energy engineering, real estate, geospatial, and healthcare technology solutions across various regions including Singapore, Australia, and the United States; it has a market cap of SGD511.29 million.

Operations: Boustead Singapore Limited generates its revenue from several segments, with Geospatial contributing SGD212.67 million, Healthcare at SGD10.58 million, Energy Engineering at SGD174.41 million, and Real Estate Solutions providing SGD369.46 million.

Dividend Yield: 5.3%

Boustead Singapore's dividend payments are well covered by both earnings and cash flows, with payout ratios of 40.9% and 29.6%, respectively, indicating a sustainable distribution despite a volatile past decade. Earnings have grown significantly by 41.6% over the past year, supporting future payouts; however, shareholder dilution has occurred recently. The dividend yield of 5.29% is lower than top-tier market payers in Singapore, and while dividends have increased over ten years, they remain unreliable overall.

• Dive into the specifics of Boustead Singapore here with our thorough dividend report.
• In light of our recent valuation report, it seems possible that Boustead Singapore is trading beyond its estimated value.

United Overseas Bank (SGX:U11)

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

Overview: United Overseas Bank Limited, along with its subsidiaries, offers a range of banking products and services globally and has a market capitalization of SGD53.65 billion.

Operations: United Overseas Bank Limited generates revenue from several segments, including Group Retail at SGD5.11 billion, Global Markets at SGD400 million, and Group Wholesale Banking at SGD6.69 billion.

Dividend Yield: 5.5%

United Overseas Bank's dividends are currently covered by earnings with a payout ratio of 51.9%, and future coverage is forecasted to remain sustainable at 49.7%. Despite an increase in dividend payments over the past decade, their reliability has been inconsistent due to volatility. The recent £750 million fixed-income offering may strengthen financial stability, supporting dividend sustainability. However, its current yield of 5.48% is below the top tier in Singapore's market for dividend payers.

• Get an in-depth perspective on United Overseas Bank's performance by reading our dividend report here.
• Our valuation report here indicates United Overseas Bank may be undervalued.

Make It Happen

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Seeking Other Investments?

• 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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