Top 3 SGX Dividend Stocks To Consider

As global economies stabilize post-pandemic, the Singapore market continues to navigate the ripple effects of international inflation dynamics, with investors keeping a keen eye on how these trends may influence local indices. In such an environment, dividend stocks can offer a sense of stability and potential income, appealing to those looking for reliable returns amidst fluctuating economic conditions.

Top 10 Dividend Stocks In Singapore

Name	Dividend Yield	Dividend Rating
BRC Asia (SGX:BEC)	6.75%	★★★★★☆
Bumitama Agri (SGX:P8Z)	6.36%	★★★★★☆
Singapore Airlines (SGX:C6L)	7.51%	★★★★★☆
YHI International (SGX:BPF)	6.36%	★★★★★☆
Singapore Exchange (SGX:S68)	3.07%	★★★★★☆
QAF (SGX:Q01)	5.99%	★★★★★☆
Aztech Global (SGX:8AZ)	9.71%	★★★★☆☆
Genting Singapore (SGX:G13)	4.71%	★★★★☆☆
Oversea-Chinese Banking (SGX:O39)	5.81%	★★★★☆☆
Delfi (SGX:P34)	6.57%	★★★★☆☆

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.

Hour Glass (SGX:AGS)

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

Overview: The Hour Glass Limited is an investment holding company involved in the retailing and distribution of watches, jewelry, and other luxury products across several countries including Singapore, Hong Kong, Japan, Australia, New Zealand, Malaysia, Thailand, and Vietnam with a market cap of SGD1.08 billion.

Operations: The Hour Glass Limited generates SGD1.13 billion in revenue from its operations in the retail and distribution of watches, jewelry, and luxury products.

Dividend Yield: 4.8%

The Hour Glass Limited offers a mixed dividend profile for investors. With a payout ratio of 33.5%, dividends are well-covered by earnings, and the cash payout ratio of 46.2% indicates strong cash flow coverage. However, the dividend yield of 4.79% is below the top quartile in Singapore's market, and past payments have been volatile with periods of significant decline. Recent approval for a final dividend reflects ongoing commitment to shareholder returns amidst strategic share repurchases authorized at their AGM.

• Click to explore a detailed breakdown of our findings in Hour Glass' dividend report.
• In light of our recent valuation report, it seems possible that Hour Glass is trading beyond its estimated value.

Oversea-Chinese Banking (SGX:O39)

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

Overview: Oversea-Chinese Banking Corporation Limited, along with its subsidiaries, offers financial services across Singapore, Malaysia, Indonesia, Greater China, the rest of the Asia Pacific region and internationally with a market capitalization of SGD68.40 billion.

Operations: Oversea-Chinese Banking Corporation Limited's revenue segments include Global Wholesale Banking at SGD5.23 billion, Global Consumer/Private Banking at SGD5.19 billion, Insurance at SGD1.27 billion, and Global Markets at SGD512 million.

Dividend Yield: 5.8%

Oversea-Chinese Banking Corporation's dividend profile is characterized by a reasonable payout ratio of 52.8%, indicating dividends are currently covered by earnings, with future coverage expected to remain stable. However, the dividend track record over the past decade has been volatile, despite recent increases. The bank's interim dividend of S$0.44 per share was paid in August 2024, reflecting ongoing shareholder returns amidst steady earnings growth and strategic financial management changes following executive retirements.

• Delve into the full analysis dividend report here for a deeper understanding of Oversea-Chinese Banking.
• Insights from our recent valuation report point to the potential undervaluation of Oversea-Chinese Banking shares in the market.

QAF (SGX:Q01)

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

Overview: QAF Limited is an investment holding company involved in the manufacture and distribution of bread, bakery, and confectionery products across Singapore, Australia, the Philippines, Malaysia, and internationally with a market cap of SGD480.35 million.

Operations: QAF Limited generates its revenue primarily from its Bakery segment, contributing SGD460.50 million, and Distribution & Warehousing segment, adding SGD164.22 million.

Dividend Yield: 6%

QAF offers a high dividend yield of 5.99%, placing it in the top 25% of Singapore's market, with dividends covered by both earnings and cash flows at around 82%. Despite stable payouts over the past decade, the lack of growth in dividend payments may concern some investors. Recent financials show improved earnings, with net income rising to S$12.48 million for H1 2024. An interim dividend of S$0.01 was paid in September 2024.

• Dive into the specifics of QAF here with our thorough dividend report.
• The valuation report we've compiled suggests that QAF's current price could be inflated.

Summing It All Up

• Reveal the 20 hidden gems among our Top SGX Dividend Stocks screener with a single click here.
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Want To Explore Some Alternatives?

• 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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