3 SGX Dividend Stocks Yielding Up To 6.5%: A Closer Look

Investing in dividend stocks can provide a reliable source of income while offering the potential for capital appreciation. In the Singapore Exchange (SGX), several companies stand out for their attractive dividend yields, financial health, and long-term sustainability. This article explores three SGX dividend stocks yielding up to 6.5% and examines their financial health, profitability, and dividend policies.


1. **Aztech Global (SGX:8AZ)**
Aztech Global, a leading provider of IoT devices, data-communication products, and LED lighting products, offers an impressive dividend yield of 10%. The company's dividend payments have increased over the years, although they remain somewhat volatile. Aztech's dividends are well-covered by earnings and cash flows, with a payout ratio of 74.4% and a cash payout ratio of 62.1%. The company trades at a discount of 39.9% to its estimated fair value, indicating potential undervaluation.


2. **HRnetGroup (SGX:CHZ)**
HRnetGroup, an investment holding company involved in recruitment and staffing across Asia, offers a dividend yield of 6%. Despite a decline in half-year earnings, the company maintains a stable dividend policy, with dividends covered by both earnings (69% payout ratio) and cash flows (74.5% cash payout ratio). HRnetGroup's dividend history, although relatively short, is considered reliable within the market context.


3. **Delfi (SGX:P34)**
Delfi, a manufacturer and distributor of chocolate and consumer products, offers a high dividend yield of 6.6%. However, the company's dividend payouts are not well-covered by free cash flow or earnings, raising sustainability concerns. Delfi's dividend history has been volatile over the past decade, making it less reliable for consistent income seekers.


In conclusion, Aztech Global, HRnetGroup, and Delfi are three SGX dividend stocks yielding up to 6.5% with varying levels of financial health and dividend sustainability. Investors should carefully evaluate each company's financial health, profitability, and dividend policies before making investment decisions. Diversifying your portfolio with a mix of dividend stocks can help mitigate risks and provide a steady income stream.