Singapore’s Central Provident Fund (CPF) scheme is a great way to save up for your retirement.
In particular, the CPF Special Account (SA) carried an interest rate of 4.08% from 1 July 2024 to 30 September 2024.
While this interest rate is attractive, there are many stocks on the Singapore bourse that sport better dividend yields.
Here are five stocks with dividend yields higher than the CPF SA interest rate.
Straits Trading Company (SGX: S20)
Straits Trading Company, or STC, is a conglomerate with operations and financial interests in resources (Malaysia Smelting Corporation Berhad), property (ESR Group), and hospitality (Far East Hospitality Holdings).
The group reported a downbeat set of earnings for 2023 because of high interest rates and a high capitalisation rate that pressured its real estate valuations.
Total revenue fell by 6.8% year on year to S$491.7 million, dragged down by a 10.1% year-on-year decline in tin mining and smelting revenue.
The drop was offset by a 21.4% year on year increase in property revenue.
STC reported a loss of S$28.6 million for 2023, reversing the S$551.3 million net profit a year before.
2023’s net profit was impacted by a downward valuation adjustment for the group’s investment properties while 2022 saw a fair value gain from the embedded derivative portion of exchangeable bonds issued.
Despite the weak performance, the conglomerate generated a positive free cash flow of S$28.7 million.
STC declared an interim dividend of S$0.08, giving its shares a trailing dividend yield of 5.7%.
Far East Hospitality Trust (SGX: Q5T)
Far East Hospitality Trust, or FEHT, owns a portfolio of 12 properties with 3,015 hotel rooms and serviced residences in Singapore.
These properties were valued at approximately S$2.5 billion as of 31 December 2023.
The trust reported a good performance for 2023 as travel demand returned with a bang.
Revenue climbed 27.8% year on year to S$106.8 million while net property income (NPI) improved by 27.7% year on year to S$98.7 million.
Distribution per stapled security (DPSS) jumped 25.1% year on year to S$0.0409, giving FEHT’s units a trailing dividend yield of 6.6%.
The hospitality trust announced an encouraging business update for the first quarter of 2024 (1Q 2024).
Revenue rose 7.5% year on year to S$27.1 million with NPI increasing by 6% year on year to S$25.1 million.
Uni-Asia Group Ltd (SGX: CHJ)
Uni-Asia Group, or UAG, is an alternative investment group that manages handy dry bulk ships and properties.
The group also has extensive know-how on alternative investments and provides services relating to such investments.
UAG reported a weak set of results for 2023 with charter and fee income falling by 42% and 29% year on year, respectively.
Total income fell by a third year on year to US$58 million.
With operating expenses declining by just 11% year on year, the group’s operating profit tumbled by 68% year on year to US$10.5 million.
Net profit came in at US$5 million, down 82% year on year.
Despite the sharply lower profit, UAG managed to churn out a positive free cash flow of US$12.6 million for the year.
A final dividend of S$0.022 was declared and paid, taking 2023’s total dividend to S$0.044.
Shares of UAG sport a trailing dividend yield of 5.5%.
UMS Holdings Ltd (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and related products.
The group serves the semiconductor, electronics, machine tools, and oil and gas sectors and has production facilities in Singapore, Malaysia, and the US.
UMS reported a weak 1Q 2024 result because of the ongoing downturn in the semiconductor industry.
Revenue fell by 33% year on year to S$54 million while net profit decreased by 44% year on year to S$9.8 million.
Despite the weaker profits, UMS still generated a positive free cash flow of S$2.7 million.
The equipment manufacturer hiked its interim dividend by 20% year on year from S$0.01 to S$0.012.
The trailing 12-month dividend totalled S$0.058, giving UMS’s shares a trailing dividend yield of 4.8%.
The group completed the construction of its 300,000-square-foot factory in Penang which will focus on medium and large-format products, special processes, and modular assembly of products for its new customer.
HRNetGroup Ltd (SGX: CHZ)
HRNetGroup is a leading staffing and recruitment firm with over 900 consultants in 17 Asian cities.
The group owns 14 brands such as HRnetOne, Recruit Express, PeopleFirst and SearchAsia.
HRNetGroup reported a weak set of earnings as hiring demand remained tepid for its professional recruitment division.
Revenue dipped by 5.4% year on year to S$578.5 million.
Net profit fell by 5.9% year on year to S$63.6 million.
The recruitment specialist generated a positive free cash flow of S$55.4 million for 2023.
A total of S$0.04 per share in dividends was paid out in 2023, giving HRNetGroup’s shares a trailing dividend yield of 5.8%.
Want more dividends in 2024? Our latest FREE report spotlights five Singapore REITs with distribution yields of 5.5% or more, a rare find in today’s market. These are reliable, proven performers. Just one stock inside could boost your portfolio’s returns in the next few months. Download your report today and start reaping the benefits.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
