You will be pleased to know that there are several investment options for you to park your money for better returns.
However, many of these may not help you to beat inflation.
For instance, the latest yield on Singapore Treasury Bills for August has come down to just 2.71% and is a sharp drop from the 3.38% offered for the one-year tranche in July.
The Singapore Savings Bond (SSB), which is capital guaranteed, offers a 2.56% per annum average return over 10 years.
These yields may seem better than what bank deposits are offering, but did you know that share investments can provide a much higher yield?
We highlight four Singapore stocks with dividend yields that exceed those offered by Treasury Bills and SSBs.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate that has four divisions – Healthcare (represented by the famous Tiger Balm brand), leisure, property, and investments.
For the first half of 2024 (1H 2024), Haw Par reported a strong set of earnings buoyed by a recovery in global sporting activities.
This recovery has benefitted its healthcare divisions as more people purchase pain patches and ointments after exercising.
Revenue for 1H 2024 rose 6.3% year on year to S$118.1 million while gross profit inched up 2.4% year on year to S$64.5 million.
Net profit climbed 17.1% year on year to S$122 million.
The conglomerate also generated a positive free cash flow of S$14.9 million, in line with the S$14.6 million churned out a year ago.
An interim dividend of S$0.20 was paid out, in line with what was paid out in the prior year.
Coupled with the final dividend of S$0.20 for 2023, the trailing 12-month dividend stood at S$0.40, giving Haw Par’s shares a trailing dividend yield of 3.6%.
Management warned, however, that the global economic uncertainty coupled with increasing cost pressures may put pressure on the group’s operating margins.
Sheng Song Group (SGX: OV8)
Sheng Siong is one of Singapore’s largest supermarket operators with 73 outlets across the island.
The group offers a wide assortment of live and chilled produce, general merchandise, and essential household products.
The retailer reported a robust set of earnings for 1H 2024.
Revenue rose 3.4% year on year to S$714.2 million while gross profit climbed 4.8% year on year to S$215 million.
Net profit improved by 6.8% year on year to S$70 million.
Sheng Siong generated 20% more free cash flow than 1H 2023, coming in at S$86.7 million versus S$72.3 million.
An interim dividend of S$0.032 was declared and paid, slightly higher than the S$0.0305 paid out last year.
Coupled with last year’s final dividend of S$0.032, Sheng Siong’s trailing 12-month dividend stood at S$0.064, giving its shares a trailing dividend yield of 4%.
The supermarket operator opened two new stores last year along with two in 1H 2024.
Another two were opened in July 2024, bringing the total opened to date to four.
Seven more tenders are going to be put up in 2H 2024, giving Sheng Siong ample opportunities to bid for more new shop spaces.
StarHub Ltd (SGX: CC3)
StarHub is a telecommunication company that offers mobile, broadband, and pay TV services to individuals and also cybersecurity services for corporations.
Excluding its D ‘Crypt division, the telco reported a slight 1% year-on-year revenue increase to S$1.1 billion.
Net profit improved by 8.7% year on year to S$83.3 million.
StarHub also generated a strong positive free cash flow of S$101.6 million for 1H 2024 versus no free cash flow for 1H 2023.
An interim dividend of S$0.03 was declared and paid for 1H 2024, and this brough the telco’s trailing 12-month dividend to S$0.072.
StarHub’s shares offer a trailing dividend yield of 5.9%.
The group has guided for at least a 1% to 3% year on year growth in service revenue for 2024 and is also committed to paying out at least S$0.06 of dividends for this year.
StarHub plans to complete the majority of its DARE+ investments by this year while its net data lake can help to power its analytics capabilities.
It will also shift more capital expenditure to operating expenditure and focus on harvesting returns from its new growth platforms from 2025 onwards.
Delfi (SGX: P34)
Delfi is a food manufacturer that produces and distributes chocolates and other confectionary in countries such as Indonesia, Malaysia, and the Philippines.
It owns several flagship brands in Indonesia such as SilverQueen, Ceres, and Delfi.
The group reported a downbeat set of earnings for 1H 2024 as high cocoa prices and a tone down in promotional spending negatively impacted revenue and profits.
Revenue fell 7.8% year on year to US$260.8 million with gross profit tumbling by 9% year on year to US$75.2 million.
Net profit plunged by 22.3% year on year to US$19.6 million.
Despite the profit drop, Delfi still generated a positive free cash flow of US$11.9 million for 1H 2024, 20% higher than the US$9.9 million churned out a year ago.
The chocolate manufacturer declared and paid an interim dividend of S$0.0272, slightly below the S$0.0273 that was paid out in 1H 2023.
The business paid out a final dividend of S$0.0233 and a special dividend of S$0.0069 last year, taking the trailing 12-month dividend to S$0.0574.
Delfi’s shares offer a trailing 12-month dividend yield of 6.6%.
Looking ahead, management sees strained supply chains, weaker currencies, and elevated interest rates as headwinds for the business.
However, the group believes it can mitigate these challenges through its brand-building efforts and by growing its core strategic products.
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Disclosure: Royston Yang owns shares of Delfi.
