As the saying goes, you are never too young to start investing.
While Warren Buffett reportedly invested his first dollar at age 11, most of us may be limited by the amount of money we have at that age.
Hence, it’s not unusual for many to start investing only when they have earned their first pay cheque.
If you’ve just entered the workforce, your priority will be on growing your pot of savings.
You should, therefore, select stocks with promising growth prospects.
However, a dash of dividends is helpful to add a layer of passive income to their earned income.
Here is a list of four Singapore stocks that not only display promising growth but also pay out a consistent dividend to boot.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that runs a platform for the buying and selling of unit trusts, equities, and bonds.
The group saw its net profit tumble in 2022 as volatile financial markets and several one-off adjustments impacted its financials.
However, the fintech still saw healthy fund inflows of S$2.1 billion last year with its fixed income division also seeing a surge in subscriptions as bond yields surged.
iFAST is also counting on its Hong Kong division to be an important growth driver for the group from this year till 2025.
The division snagged a significant ePension contract that should greatly boost the division’s revenue and net profit once contributions start flowing in from the fourth quarter of this year (4Q 2023).
An annual dividend of S$0.048 was declared for 2022, similar to the level paid out in 2021.
Shares of iFAST provide a 0.9% historical dividend yield.
UMS Holdings Limited (SGX: 558)
UMS provides equipment manufacturing and engineering services to the original equipment manufacturers of semiconductors.
The group reported a strong set of earnings for the first nine months of 2022 (9M 2022).
Revenue climbed 48% year on year to S$271.4 million while net profit surged by 73% year on year to S$82 million.
UMS believes that global chip demand should remain fairly strong over the long term, although the industry may be facing a short-term cyclical downturn.
The semiconductor market is projected to surpass US$1 trillion by 2030, led by a boom in automobiles and data centres.
UMS is also ramping up its expansion plans with the construction of its Penang factory completed by the end of last year and in preparation for production ramp-up in the middle of 2023.
An interim dividend of S$0.01 was declared for the third quarter of 2022.
UMS’ trailing 12-month dividend stood at S$0.05, giving its shares a trailing 12-month dividend yield of 4.5%.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a retailer of luxury watches with 50 boutiques in the Asia-Pacific region.
The group is the official retailer of famous Swiss watch brands such as Rolex, Patek Philippe, and Audemars Piguet.
The group reported a strong set of earnings for its fiscal 2023’s first half (1H FY2023).
Total revenue rose 18% year on year to S$562.7 million while net profit surged 35% year on year to S$84.6 million.
The group expects to be profitable for FY2023 and with China’s recent reopening, there could be stronger demand for luxury timepieces in the coming months.
An interim dividend of S$0.02 was paid out, similar to a year ago.
The trailing 12-month dividend came in at S$0.08, giving THG’s shares a trailing dividend yield of 3.9%.
Food Empire Holdings Ltd (SGX: F03)
Food Empire is a food and beverage manufacturer that produces instant beverages and frozen and snack food products.
The group’s products are sold in over 50 countries and it has 23 offices worldwide along with eight manufacturing facilities.
For 9M 2022, Food Empire posted a 26.5% year on year rise in revenue to US$286 million.
Net profit soared more than three-fold year on year from US$14.6 million to US$49.6 million.
The food and beverage group recently announced that for 2022, it will report a substantial increase in profits that is partly due to the disposal of a non-core asset.
For 2021, Food Empire paid out a total dividend of S$0.022, giving its shares a historical dividend yield of 2.7%.
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Disclosure: Royston Yang owns shares of iFAST Corporation Limited.
