Investors have been blessed with higher deposit rates as interest rates surged around the globe back in 2022.
However, of late, there are indications that rates may be heading lower after the US Federal Reserve lowered its benchmark interest rate by 0.75 percentage points over two sessions.
As such, yield-hungry investors are looking for dividend-paying stocks that pay out attractive dividend yields that can mitigate the decline in deposit rates.
Here are four Singapore stocks that sport dividend yields of 5.9% or higher.
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, 176 food stalls, 11 restaurants, and four Tenderfresh kiosks.
The group also operates central kitchens that supplies sauces, marinades, and semi-finished products to its food stalls.
Kimly reported a mixed set of earnings for its fiscal 2024 (FY2024) ending 30 September 2024.
Revenue inched up 1.8% year on year to S$319.4 million, contributed by the opening of 11 food stalls and two restaurants in FY2024.
It was offset by the reduction of contribution from existing food stalls and the closure of six underperforming food stalls in FY2023.
Net profit for FY2024 stood at S$31.7 million, a 6.8% year-on-year decline.
The business generated a positive free cash flow of S$82 million for the fiscal year, a slight 1.6% year-on-year dip.
A final dividend of S$0.01 was declared, taking the total FY2024 dividend to S$0.02.
Kimly’s shares offer a trailing dividend yield of 6.2%.
The group will continue to seek out suitable new food outlets to broaden its presence and continue to reinventing its menu offerings.
Kimly will also focus on enhancing its central kitchen’s capabilities through technology and innovation.
LHN Limited (SGX: 41O)
LHN offers real estate management services and the group operates four main business segments – space optimisation, property development, facilities management, and energy.
The group has business operations in Singapore, Indonesia, Myanmar, Cambodia, and Hong Kong.
LHN reported a robust set of earnings for FY2024 with revenue jumping 29.2% year on year to S$121 million.
Gross profit increased by 20% year on year to S$62.2 million.
Net profit from continuing operations shot up 155% year on year to S$47.3 million.
The business also generated a positive free cash flow of S$23.5 million for FY2024, though this was down a third from the previous year’s S$35.3 million.
A dividend per share of S$0.03 was declared, unchanged from a year ago.
At a share price of S$0.43, LHN’s shares provides a trailing dividend yield of 7%.
As of 30 September 2024, LHN’s space optimisation properties enjoyed high occupancy rates above 96% for its industrial, commercial, and residential segments.
For its space optimisation business, LHN targets to acquire at least 800 new rooms every year via master lease or selective acquisition.
The group also has four pipeline projects in various parts of Singapore with a total of around 420 new units of residential space.
LHN recently launched a food processing industrial development at 55 Tuas South Avenue 1 with a saleable area of 112,000 square feet.
CSE Global (SGX: 544)
CSE Global is a leading systems integrator providing electrification, communications, and automation services.
The group has a presence across 16 countries and has 58 offices with close to 2,000 employees.
CSE Global reported an encouraging business update for the first nine months of 2024 (9M 2024).
Revenue rose 20.2% year on year to S$642.8 million as the group saw growth across all its business segments and geographical regions.
The electrification divisions saw the biggest year-on-year revenue increase at 28.8% while Automation division enjoyed an 18.6% year-on-year jump in revenue to S$145.9 million.
Order intake, however, fell by 18.1% year on year to S$565.4 million for 9M 2024.
CSE Global saw its order book at S$633.6 million as of 30 September 2024, just slightly below the S$638 million a year ago.
The group previously declared an interim dividend of S$0.0125 for the first half of 2024 and a final dividend of S$0.015 for 2023, taking its trailing 12-month dividend to S$0.0275.
Shares of the engineering firm provide a trailing dividend yield of 5.9%.
CSE Global intends to diversify into new markets brought about by emerging trends as it sees increasing demand for key products such as wind and solar systems, and battery energy storage systems.
The group will also look at expansion as a viable growth strategy and its focus areas will be in complementary and adjacent capabilities.
Valuetronics Holdings Limited (SGX: BN2)
Valuetronics is a one-stop, integrated electronic manufacturing services (EMS) provider with two principal business segments – consumer electronics (CE) and industrial and commercial electronics (ICE).
The group has two manufacturing facilities in China (1) and Vietnam (1).
Valuetronics reported a mixed set of earnings for 1H FY2025.
Total revenue dipped by 3.3% year on year to HK$862.1 million, dragged down by a 17.6% year-on-year decline in revenue for its CE division.
Gross profit, however, improved by 4.3% year on year to HK$144.8 million as gross profit margin improved from 15.6% to 16.8%.
Net profit climbed 10.2% year on year to HK$90.5 million.
The group declared an interim dividend of HK$0.04 and a special dividend of HK$0.04, bringing the total dividend declared for 1H FY2025 to HK$0.08.
Coupled with the HK$0.17 declared for the second half of FY2024, Valuetronics’ trailing 12-month dividend stood at HK$0.25, giving the group a trailing dividend yield of 6.9%.
Valuetronics sees growth in ICE driven by new customers, even as the CE division suffers from slower business because of softer demand in end markets.
The group’s strategy of allocating more resources to newly-acquired customers with higher growth potential is showing results.
Along with improvements in component supply chain should help support further gains in gross margin.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
