Stock Analysis

Exploring Three SGX Dividend Stocks With Yields Starting At 3.7%

Source: Shutterstock

In recent years, the Singapore market has reflected broader global economic trends, with varying impacts on publicly traded corporations and privately held companies. As interest rates have trended downward globally, financing costs for businesses have decreased, yet this has not uniformly translated into higher profit rates across all sectors. When considering dividend stocks in this environment, a good stock typically offers a stable yield that can provide investors with consistent returns despite broader market fluctuations.

Top 10 Dividend Stocks In Singapore

NameDividend YieldDividend Rating
BRC Asia (SGX:BEC)7.62%★★★★★☆
Civmec (SGX:P9D)5.99%★★★★★☆
Singapore Exchange (SGX:S68)3.57%★★★★★☆
UOB-Kay Hian Holdings (SGX:U10)6.97%★★★★★☆
UOL Group (SGX:U14)3.80%★★★★★☆
Bumitama Agri (SGX:P8Z)6.86%★★★★★☆
Singapore Airlines (SGX:C6L)7.13%★★★★★☆
Oversea-Chinese Banking (SGX:O39)5.94%★★★★☆☆
Delfi (SGX:P34)6.64%★★★★☆☆
Sing Investments & Finance (SGX:S35)6.03%★★★★☆☆

Click here to see the full list of 18 stocks from our Top SGX Dividend Stocks screener.

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

China Sunsine Chemical Holdings (SGX:QES)

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

Overview: China Sunsine Chemical Holdings Ltd. is an investment holding company that specializes in manufacturing and selling specialty chemicals across the People’s Republic of China, other parts of Asia, the United States, and Europe, with a market capitalization of SGD 382.58 million.

Operations: China Sunsine Chemical Holdings Ltd. generates revenue primarily through its Rubber Chemicals segment, which contributed CN¥4.38 billion, along with smaller contributions from Heating Power and Waste Treatment segments totaling CN¥221.29 million and CN¥29.76 million respectively.

Dividend Yield: 6.2%

China Sunsine Chemical Holdings has a history of unstable dividend payments over the past decade, with significant annual fluctuations. However, its dividends are well-supported financially, evidenced by a low payout ratio of 20.8% and a cash payout ratio of 30.2%, suggesting that earnings and cash flows sufficiently cover the dividend payments. Recent corporate actions include a share buyback program initiated on May 13, 2024, and board changes aimed at enhancing governance. Despite these positives, the dividend yield is slightly below the top quartile in Singapore's market at 6.18%.

SGX:QES Dividend History as at Jun 2024
SGX:QES Dividend History as at Jun 2024

Sing Investments & Finance (SGX:S35)

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

Overview: Sing Investments & Finance Limited offers financing services to both individuals and corporations in Singapore, with a market capitalization of approximately SGD 235.26 million.

Operations: Sing Investments & Finance Limited generates its revenue primarily through credit and lending activities, amounting to SGD 68.26 million.

Dividend Yield: 6%

Sing Investments & Finance exhibits a mixed performance in dividend reliability, with a history of volatile dividends over the past decade. Despite this, its dividends are financially sustainable with an earnings coverage payout ratio of 42.7% and a low cash payout ratio of 9.6%, indicating strong coverage by both profits and cash flows. However, its dividend yield at 6.03% is slightly below the top quartile for Singapore's market. Recently, it proposed a final dividend of S$0.06 per share for FY2023 during its upcoming AGM on April 25, 2024.

SGX:S35 Dividend History as at Jun 2024
SGX:S35 Dividend History as at Jun 2024

UOL Group (SGX:U14)

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

Overview: UOL Group Limited operates in property development and hospitality sectors across various countries including Singapore, Australia, the UK, China, and the US, with a market capitalization of approximately SGD 4.45 billion.

Operations: UOL Group Limited generates revenue primarily through property development in Singapore (SGD 1.16 billion), property investments (SGD 518.93 million), and hotel operations across Singapore (SGD 464.93 million), Australia (SGD 125.64 million), and other locations (SGD 172.40 million), along with technology operations contributing SGD 110.08 million, and smaller investments totaling SGD 67.79 million.

Dividend Yield: 3.8%

UOL Group Limited offers a stable dividend yield of 3.8%, supported by a conservative payout ratio of 17.9% and cash payout ratio of 59.3%, ensuring dividends are well-covered by earnings and cash flows. The company has maintained consistent dividend payments over the past decade, with recent increases reflecting its financial health. However, it's important to note that UOL's dividend yield is below the top quartile in Singapore's market, where yields average around 6.2%. Additionally, recent executive changes with the appointment of Mr. Ng Tiang Poh as CFO could influence future financial strategies.

SGX:U14 Dividend History as at Jun 2024
SGX:U14 Dividend History as at Jun 2024

Summing It All Up

  • Access the full spectrum of 18 Top SGX Dividend Stocks by clicking on this link.
  • Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
  • Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Searching for a Fresh Perspective?

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.

Valuation is complex, but we're helping make it simple.

Find out whether UOL Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email