Singapore is home to some of the world’s best dividend stocks.
What is there to complain about when you have easy access to 10 companies with a track record of increasing dividends YoY for the last 5 years?
To top off the icing, these stocks are easily trading with a minimum 5% yield!
Curious to know which of these 10 companies they are?
1. Jardine Matheson Holdings Limited (SGX: J36)
This multinational conglomerate is often overlooked due to its many businesses and subsidiaries. It’s even rare that most of the subsidiaries, Hongkong Land Holdings Limited (SGX: H78), DFI Retail Group Holdings Ltd (SGX: D01), Mandarin Oriental International Ltd (SGX: M04) and Jardine Cycle & Carriage Ltd (SGX: C07) are also listed entities.
Dividends per share have been increasing steadily, from $1.72 per share to $2.25.
Against a share price of $36 per share, that is a sweet 5.9% dividend yield.
Not too shabby from a conglomerate!
2. Bumitama Agri Ltd. (SGX: P8Z)
Bumitama Agri Ltd is a major Indonesian palm oil producer. Founded in 1996, Bumitama cultivates oil palm trees on a massive scale, with over 187,000 hectares planted across Central and West Kalimantan. They operates 14 crude palm oil (CPO) mills, churning out more than 1 million tons of crude palm oil annually.
Although proudly made in Indonesia, Bumitama Agri Ltd is listed on the Singapore Stock Exchange and is part of the prominent Harita Group.
Revenue has grown almost 100% over the last 5 years, from IDR 7,700 billion to IDR 15,443 billion. Dividends per share have also surged from IDR 90.54 to IDR 569.88 in the same period.
Although there is a forex risk due to currency exchange, it is still one of the world’s largest palm oil plantations and refineries. Sporting a 7% dividend yield would certainly attract eyeballs of dividend investors.
3. Straits Trading Company Ltd (SGX: S20)
Straits Trading Company is another diversified conglomerate that features on the list. It is a conglomerate-investment company with operations and financial interests in resources, property and hospitality.
These include majority or strategic stakes in the world’s third-largest tin producer, Malaysia Smelting Corporation Berhad (KLSE: MSC, SGX: NPW), which is dual-listed on Bursa Malaysia and the Singapore Exchange Securities Trading Limited, ESR Group Limited (HKG: 1821) and Far East Hospitality Holdings (SGX: Q5T), as well as a diversified property portfolio and real estate investments wholly owned by the group.
As of the time of writing, share prices settled at S$ 1.36 per share, giving the company a trailing dividend yield of 5.8%.
4. Samudera Shipping Line Ltd (SGX: S56)
Samudera Shipping Line Ltd is the subsidiary of PT Samudera Indonesia Tbk (IDX: SMDR), a Singaporean shipping company. They focus on transporting containerized and non-containerized cargo across Southeast Asia, the Indian Subcontinent, the Far East, and the Middle East.
The company has been a multi-bagger over the years – it was trading below S$0.20 a share 5 years ago, but rose to as high as S$ 1.41 a share during the shipping crunch as it benefited from the supply chain disruption.
Though it might be difficult to see with the above chart, 5 years ago DPS was just S$ 0.008. It’s latest DPS for FY 2024 is S$ 0.09. Against a share price of S$ 1.00, that is a 9% dividend yield.
5. Delfi Ltd (SGX: P34)
Delfi Limited is a Singaporean manufacturer of chocolates and confectionery products, formerly known as Petra Foods. Founded in 1984, they’ve been in the business for nearly 40 years!
Their brands are well-known in Southeast Asia, with notable names such as Van Houten, SilverQueen, Ceres and many more.
Dividends per share have certainly grown over the last 5 years. It currently trades at a dividend yield of 5.75%.
But do take note of the potential margin squeeze as cocoa prices have been volatile in 2024!
6. Civmec Limited (SGX: P9D)
Civmec is an Australian engineering and construction company dual-listed on the Singapore and Australian stock exchanges.
Its sector of focus includes Energy, Resources, Infrastructure, Marine and Defence sectors.
Due to its speciality, it is a company that will be measured by its project books and key project pipelines and progress.
Business growth has been positive over the last 5 years, which also sees dividend per share increasing as well.
7. Valuemax Group Ltd (SGX: T6I)
You might find this business uncommonly listed on a stock exchange. Valuemax is Singapore’s leading pawnbroking company, delving into retail and trading of pre-owned jewellery and gold.
The business has grown and diversified over the years, and the company can count itself as one of Singapore’s successful homegrown businesses and corporates.
Dividend per share might be improving slowly, but it has been consistently below the 50% payout ratio. It currently trades at a dividend yield of 5.64%.
Also, did I forget to mention, that it trades at a trailing price-to-book ratio of around 0.70x?
8. Multi-Chem Ltd (SGX: AWZ)
Multi-Chem Ltd is a company that could be riding on the AI wave. As a company involved heavily in the Printed Circuit Board (PCB) fabrication processes and IT business, its business model couldn’t be more primed at catalyzing on AI trends and requirements.
Its dividend per share growth is the most aggressive among the 10 stock cohorts – achieving a 60% CAGR growth over the last 4 years.
The dividend payout ratio has also been prudent, maintaining below 50%. So this stock could strike a chord with dividend growth investors!
9. YHI International Ltd. (SGX: BPF)
YHI International Limited is listed on the Singapore Stock Exchange (SGX) under the stock symbol BPF. They are an Original Design Manufacturer (ODM) specializing in alloy wheels.
The company has manufacturing plants in Taiwan, Malaysia and China. It is also involved in the distribution business of tyres, wheels, energy solutions, utility vehicles and industrial products.
The company now trades at a dividend yield of 6.63%. Although Singapore is not a country where automobile sales can grow by leaps and bounds, thankfully YHI’s business is not concentrated in Singapore.
10. Hafary Holdings Limited (SGX: 5VS)
Hafary has a niche business – it is involved in supplying high-quality building materials. They specialize in providing a vast selection of products to meet diverse design needs for architects, interior designers, developers, and homeowners.
As homeowners become more sophisticated and demanding of their living spaces, Hafary has carved out a business model that sees it thriving.
Dividends per share have been steadily growing, in line with topline growth.
It is still a small company by market cap – only S$ 159.3 million. However, it trades at a trailing dividend yield of 4.05%, which is not too shabby!
Value is there if you choose to find it
I have to admit, some companies on this list look exciting given the value they are trading at.
Yes, the Singapore banks and S-REITs have always been making headlines. Not seeing any commentary or analysis on some of these companies might make you doubt their potential.
But for me, the more undiscovered these companies are, the more interested they become. Companies with less hype can see a higher upswing if they find favour with analysts.
Think about finding great dividend companies like treasure hunting – do you want to be the first one discovering it or the latter?
This reaffirms another point that I firmly believe in – it is possible to find great dividend companies on SGX – if you dig hard and analyze harder.
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