Food can be said to be a Singaporean’s best friend.
The country has an eclectic mix of different foods that can whet any investor’s appetite.
Income investors can look at a myriad of food and beverage (F&B) stocks that pay out consistent dividends to add to their portfolios.
Here are four Singapore F&B-related stocks with dividend yields of 3.8% or higher.
Jumbo Group (SGX: 42R)
Jumbo Group is an F&B company operating a diverse portfolio of brands and concepts.
These include JUMBO Seafood (famous for its chilli crab), Kok Kee Wanton Noodles, and Love, Afare.
Revenue for fiscal 2024 [FY2024] (ending 30 September 2024) rose 6.5% year on year to S$190.4 million.
Gross profit improved by 6.8% year on year to S$125 million, but net profit tumbled 6.5% year on year to S$13.7 million.
A final dividend of S$0.005 was declared and paid, taking FY2024’s total dividend to S$0.01.
At a share price of S$0.38, Jumbo Group’s shares offer a trailing dividend yield of 3.8%.
The group plans to strengthen its focus on the Singapore market as it anticipates that the F&B sector and tourism can continue to grow.
Internationally, the chilli crab specialist intends to expand into new markets across Southeast Asia to extend its geographical reach.
Fraser & Neave (SGX: F99)
Fraser & Neave, or F&N, operates an F&B business manufacturing carbonated soft drinks, juices, milk, and ice cream.
The group also has a printing and publishing division that retails books.
For FY2024, revenue edged up 3% year on year to S$2.2 billion while net profit climbed 12.7% year on year to S$150.2 million.
The group also generated a positive free cash flow of S$102.4 million for FY2024.
Beverages saw an 11% year-on-year increase in revenue, while Dairies division registered a smaller 1% year on year revenue increase.
The main drag came from its printing and publishing segment, where revenue fell 9% year on year.
Management proposed a final dividend of S$0.04, and together with the interim dividend of S$0.015, the total dividend for FY2024 came up to S$0.055.
Shares of F&N provide a trailing dividend yield of 4.5%.
The group is progressing with its integrated dairy farm project in Negeri Sembilan in Malaysia but the initial livestock saw a suspension from the US because of bird flu concerns.
F&N also plans to construct a new dairy manufacturing facility in Cambodia by spending around US$37.5 million.
The new plant is scheduled to commence operations in 1Q 2026 and will oversee the production, distribution, marketing, and sale of canned milk.
Delfi Ltd (SGX: P34)
Delfi manufactures and sells branded consumer products, including chocolates and other foodstuffs.
The group owns an established portfolio of chocolate brands, including SilverQueen and Ceres in Indonesia, and also distributes agency brands in Indonesia, Malaysia, and the Philippines.
Delfi reported a downbeat set of earnings for 2024 with net sales falling 6.6% year on year to US$502.7 million.
Net profit tumbled 26.6% year on year to US$33.9 million.
Despite the fall in net profit, free cash flow soared from just US$1.5 million in 2023 to US$23.6 million in 2024.
A final dividend of S$0.0157 was proposed, taking the total dividend for 2024 to S$0.0429.
Shares of Delfi offer a trailing dividend yield of 6%.
Looking ahead, Delfi expects the operating environment to remain challenging as high cocoa prices will continue to pressure earnings.
The group developed strategies to mitigate this headwind, including initiating price adjustments and improving operations to save costs.
Management believes that its well-established brands and strong market position in Indonesia can help it weather these headwinds to emerge stronger.
Kimly Ltd (SGX: 1D0)
Kimly is one of the largest traditional coffee shop operators in Singapore and operates and manages an extensive network of 86 food outlets and 176 food stalls, along with kiosks and restaurants.
The group reported a mixed set of earnings for FY2024, with revenue inching up 1.8% year on year to S$319.4 million.
Net profit fell by 6.8% year on year to S$31.7 million because of higher staff costs and elevated utility expenses.
The coffee shop operator generated a positive free cash flow of S$82 million for the previous fiscal year.
Despite the profit drop, Kimly declared a final dividend of S$0.01, taking its total FY2024 dividend to S$0.02.
At S$0.32, shares of Kimly offer a compelling 6.3% trailing dividend yield.
Kimly is proactively seeking out suitable new food outlets to expand its presence and is also committed to growing its Halal business.
The group plans to use technology and innovative techniques to enhance its central kitchen capabilities to achieve better operating efficiency.
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Disclosure: Royston Yang owns shares of Delfi Ltd.
