It can be tough to find stocks that offer a nice mix of growth and dividends.
Stocks offering high growth generally pay out little or no dividends, while those with high dividend yields may not offer much growth.
But if you are looking for this sweet combination, there are several stocks offering it – you just need to look harder.
We dig the homework for you and showcase three companies that not only reported higher profits, but also sport dividend yields of 5.8% or higher.
Multi-Chem (SGX: AWZ)
Multi-Chem has been distributing IT products since 2002 and is a leading regional cybersecurity and network performance products.
The group has a presence in 24 cities across 13 countries.
Multi-Chem reported a commendable set of earnings for 2024, with revenue rising 4% year on year to S$683.7 million.
Gross profit inched up 3% year on year to S$97.5 million.
The group’s net profit increased by 14% year on year to S$30.8 million.
Multi-Chem generated free cash flow of S$36.1 million for 2024, up 45% year on year.
The group declared a final dividend of S$0.142, taking the total 2024 dividend to S$0.253.
At a share price of S$3.09, shares of the IT distributor provide a trailing dividend yield of 8.2%.
Management believes that IT is still a critical requirement in businesses and that security will remain a major aspect of IT infrastructure.
This demand should carry the business forward to the next level, and the group will scout for opportunities for regional expansion.
Multi-Chem will also curate the products it carries so that they can do their best for the principals they represent.
First Resources (SGX: EB5)
First Resources is a leading palm oil producer which manages more than 200,000 hectares of oil palm plantations across various provinces in Indonesia.
The group’s activities include the cultivation of oil palms, harvesting the fruits, and milling them into crude palm oil (CPO).
First Resources reported a stellar set of earnings for 2024.
Sales increased by 5.9% year on year to US$1 billion while gross profit jumped 22.8% year on year to US$445.7 million.
Net profit leapt 69.1% year on year to US$245.8 million.
The CPO producer’s underlying net profit surged 56.1% year on year to US$228.8 million.
First Resources generated a positive free cash flow of US$66.5 million for the year, reversing the negative free cash flow of US$36 million for 2023.
A final dividend of S$0.063 was proposed, taking the total 2024 dividend to S$0.098.
The total dividend was 58.1% higher than the S$0.062 paid out the year before.
At S$1.42, shares of First Resources provide a trailing dividend yield of 6.9%.
For 2024, 3.8 million tonnes of fresh fruit bunches (FFB) were harvested, representing a 6% year-on-year increase.
Around 1 million tonnes of CPO were harvested, up 5.5% year on year.
The expected capital expenditure for 2025 is around US$160 million and will be used for the replanting of oil palms, conversion of rubber to oil palm, and the upgrading and maintenance of existing CPO mills.
Indonesia’s expansion of its biodiesel mandate is expected to tighten global palm oil supplies, which will help to support CPO prices.
First Resources has commented on the replanting process for plantation assets acquired in late 2023 and believes that the integration of mills, plantations, and land bank in the Riau province will yield higher contributions in the coming years.
Sing Investments & Finance (SGX: S35)
Sing Investments & Finance, or SIF, is a finance company offering a full spectrum of financial products and services, including deposits, personal financing, and corporate finance.
For 2024, net interest income rose 18% year on year to S$64.7 million while non-interest income jumped 20% year on year to S$7.3 million.
As a result, total income increased by 18% year on year to S$72 million.
Net profit increased by 9% year on year to S$36.3 million.
A first and final dividend of S$0.065 was declared, slightly above the S$0.06 that was paid out a year ago.
SIF’s shares offer a trailing dividend yield of 5.8%.
Management has a cautious view for 2025 as it identified the risks of geopolitical conflict and the potential shift in trade policies and relationships.
Trump’s tariffs have also added yet another layer of uncertainty to the mix.
SIF also recognises that there are growth opportunities, but will tread cautiously amid the uncertainty.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
