Macroeconomic conditions remain fragile as high interest rates have crimped consumer demand.
Surging inflation has also been a major worry for businesses as they witness their costs rising sharply.
Amid the turmoil, investors are looking for safe havens and dependable businesses that they can count on to weather these challenges.
Such companies should have a long history of operating through different market conditions, a solid reputation, and a consistent track record of dividend payments.
We highlight three resilient Singapore stocks that sport dividend yields of 4.2% or higher.
VICOM (SGX: WJP)
VICOM is a provider of inspection and technical testing services.
The group offers inspection and testing services for vehicles and non-vehicle fields such as mechanical, civil, biochemical, and non-destructive testing.
VICOM’s vehicle testing business holds the lion’s share of the market with a market share of over 72% for 2023.
This high market share puts the group in a strong position to weather economic downturns as people still need to get their cars inspected.
VICOM delivered a steady set of earnings for the first half of 2024 (1H 2024).
Revenue inched up 0.8% year on year to S$56.3 million while operating profit increased by 1.6% year on year to S$16.8 million.
The group’s net profit edged up by 1.3% year on year to S$14.1 million.
VICOM also generated a positive free cash flow of close to S$10 million for 1H 2024, 17% higher than the S$8.5 million churned out a year ago.
An interim dividend of S$0.028 was declared, slightly higher than the S$0.0275 paid out last year.
VICOM’s trailing 12-month dividend stood at S$0.0555, giving its shares a trailing dividend yield of 4.2%.
Management believes that demand for vehicle testing will remain strong and the group has started to install the on-board units (OBUs) for the Electronic Road Pricing 2.0 exercise.
Although demand for non-vehicle testing will increase, VICOM warned that profit margins will be pressured by stronger competition.
Despite these headwinds, the group expects to report a satisfactory performance for the second half of 2024 (2H 2024).
CSE Global (SGX: 544)
CSE Global is a systems integrator that provides electrification, communications, and automation solutions across various industries.
The engineering firm has a presence in 16 countries, has 58 offices, and employs more than 2,000 staff across the world.
CSE Global has a solid track record of paying out S$0.0275 of dividends per share annually over the past five years.
The group reported a robust set of earnings for 1H 2024 as revenue jumped 22.8% year on year to S$428.9 million.
Gross profit improved by 23.6% year on year to S$118.4 million while net profit climbed 36.1% year on year to S$15 million.
The engineering firm also generated a positive free cash flow of S$4.6 million for 1H 2024, reversing the negative free cash flow of S$8.5 million.
CSE Global declared an interim dividend of S$0.0125, unchanged from a year ago. The trailing 12-month dividend yield for its shares stood at 5.9%.
The group reported an order intake of S$390.6 million for 1H 2024, comparable to last year’s level.
Its order book, however, swelled to S$692.3 million, nearly 33% higher than the S$521.8 million reported or 1H 2023.
CSE Global announced the acquisition of RFC Wireless last month for US$11.5 million.
RFC Wireless is a provider of advanced communications solutions from portable and mobile radios to wide area networks and infrastructure.
Venture Corporation (SGX: V03)
Venture Corporation is a provider of technology products, services, and solutions.
The blue-chip group serves many sectors such as life sciences, genomics, medical devices, and network and communications, among others.
The contract manufacturer has put up a resilient performance over the years even as its revenue and net profit fluctuate with the economy.
The group has paid out a consistent S$0.75 per share in dividends since 2020.
Venture reported a slightly downbeat performance for 1H 2024 as revenue fell by 12.5% year on year to S$1.4 billion.
Net profit tumbled by 11.7% year on year to S$123.7 million.
On a positive note, the technology group churned out a positive free cash flow of S$260.5 million, up 13.4% year on year.
It also kept its interim dividend unchanged at S$0.25, giving its shares a trailing dividend yield of 5.4%.
Management is busy onboarding new customers and is engaging in new product introduction initiatives to improve its performance for 2H 2024.
The group is also expanding its capabilities in new verticals to try and serve a larger base of customers.
Venture Corporation expects its revenue in 2H 2024 to be better than that of 1H 2024.
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Disclosure: Royston Yang owns shares of VICOM.
