3 SGX Dividend Stocks Yielding Up To 6.5%: A Closer Look
Thursday, Oct 24, 2024 8:21 pm ET
1min read 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.
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.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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