Singapore’s Central Provident Fund (CPF) scheme is an excellent way for you to save up for your retirement.
The CPF Ordinary Account pays an annual interest rate of 2.5% while the Special Account pays out a higher rate of 4.14%.
However, share investing can net you an even better return if you know how to manage your risks.
This is especially so with stocks that pay out consistent dividends.
Here are four stocks that provide a higher dividend yield than the CPF Special Account that you can consider for your buy watchlist.
Far East Hospitality Trust (SGX: Q5T)
Far East Hospitality Trust, or FEHT, is a hospitality trust with a portfolio of 12 properties totalling 3,015 hotel rooms and serviced residence units.
The portfolio had assets under management (AUM) of S$2.5 billion as of 31 December 2023.
FEHT is still enjoying the benefits from the tourism uplift as more people rush to book vacations.
Gross revenue for the first half of 2024 (1H 2024) rose 3.4% year on year to S$53.8 million.
Net property income (NPI) inched up 1% year on year to S$49.5 million.
Distribution per stapled security (DPS) rose 2.1% year on year to S$0.0196.
The annualised DPS of S$0.0392 means that units of FEHT offer a prospective distribution yield of 6.1%.
The hospitality trust’s hotel portfolio saw average occupancy rise 2.1 percentage points to 80.4% in 1H 2024.
Revenue per available room (RevPAR) climbed 6.4% year on year to S$141.
FEHT also has one of the lowest gearing levels among S-REITs at just 30.8% with an average cost of debt of 4.1%.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is an industrial REIT that owns 229 properties across Singapore, the US, Australia, and Europe/the UK.
The REIT’s AUM stood at S$16.9 billion as of 30 June 2024.
For 1H 2024, gross revenue rose 7.2% year on year to S$770.1 million.
NPI inched up 3.9% year on year to S$528.4 million, but distribution per unit (DPU) dipped by 2.5% year on year to S$0.07524 because of a larger unit base.
Based on the annualised DPU of S$0.15048, CLAR’s units offer a prospective distribution yield of 5.3%.
The REIT maintained a healthy portfolio occupancy rate of 93.1% as of 30 June 2024.
It also registered positive rental reversion of 13.4% for 1H 2024.
CLAR completed asset enhancement works at Pacific Tech Centre in Singapore in July 2024 with the refurbishment of the interior finishes in the main lobby and upgrading of the existing common corridors.
The industrial REIT has six ongoing projects in Singapore worth S$572.8 million involving refurbishment or redevelopment.
These should be completed by the third quarter of this year all the way to the first quarter of 2026.
Aztech Global (SGX: 8AZ)
Aztech Global is a designer and manufacturer of Internet of Things (IoT) devices and data communication products.
The group has four R&D centres in Singapore, Hong Kong, and China along with three manufacturing facilities in China and Malaysia.
Aztech Global reported a mixed set of earnings for 1H 2024.
Revenue dipped by 4% year on year to S$373.2 million but net profit rose 8.7% year on year to S$46.7 million.
The business saw its free cash flow leap more than fourfold year on year from S$12 million to S$57.1 million for 1H 2024.
An interim dividend of S$0.05 was declared, 66% higher than the S$0.03 paid out last year.
Aztech Global’s trailing 12-month dividend of S$0.10 means that its shares sport a trailing dividend yield of 9.7%.
The group recently expanded its R&D headcount by 11% to enhance its R&D capabilities.
Meanwhile Aztech Global is setting up plastic injection moulding machines at its Pasir Gudang facility in Johor to improve its slate of offerings.
These should be operational by the third quarter of 2024 with mass production to start in the current quarter.
The group also announced that it has five new products in the communication, consumer, and health-tech segments scheduled for commercial production by the end of this year.
As of 30 July 2024, Aztech Global’s order book stood at S$304.4 million.
Food Empire (SGX: F03)
Food Empire is a food and beverage (F&B) manufacturing and distribution group with a portfolio comprising instant beverages, snack foods, and food ingredients.
The group has eight manufacturing facilities in five countries and owns proprietary brands such as MacCoffee, CafePHO, Klassno, and Kracks.
Food Empire also released a mixed set of earnings for 1H 2024.
Revenue rose 13.6% year on year to US$225.2 million.
However, net profit fell by 12.8% year on year to US$23.2 million due to short-term pricing issues in Russia along with higher operating expenses for brand-building.
For 2023, the group paid out a final dividend of S$0.05 and a special dividend of S$0.05, taking the total dividend to S$0.10.
The trailing dividend yield on Food Empire’s shares was 9.4%. Even if the special dividend was excluded, shares still yield an attractive 4.7%.
For the second quarter of 2024, Food Empire completed the expansion of its Malaysia non-dairy creamer production facilities and expects to reach full utilisation over the next two to three years.
By the end of 2025, the group plans to open its first coffee mix production facility in Kazakhstan.
Just last month, Food Empire announced that it will invest US$80 million to construct a new Vietnam freeze-dried soluble coffee manufacturing facility.
Located in Binh Dinh, it will be the group’s second manufacturing facility there and should be completed by early 2028.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
