Dividend-paying stocks, including REITs, are naturally a favourite among income investors
However, it’s important to remember that not all stocks that pay a dividend can sustain them.
Dividend investing should emphasize not just the magnitude of dividends and associated yields, but also focus on the sustainability of the yield.
That said, REITs are not the only vehicles capable of paying out a regular, consistent dividend.
Companies with a good track record of dividend payments and a stable business can also be considered.
Here are five non-REIT companies with dividend yields exceeding 4%.
APAC Realty Ltd (SGX: CLN)
APAC Realty is a real estate services company that holds the ERA master franchise rights for 17 countries in Asia-Pacific.
The group has more than 18,000 salespeople across 646 offices and is Singapore’s largest real estate agency with more than 7,800 salespeople.
For 2020, APAC Realty saw its revenue inch up 6.9% year on year to S$395.1 million, driven by higher brokerage income from resale and rental of properties.
Profit after tax jumped by 17.8% year on year to S$16.3 million.
The company declared a final dividend of S$0.0175.
Together with its interim dividend of S$0.0075, the full-year 2020 dividend came up to S$0.025.
At the last traded share price of S$0.49, the trailing dividend yield stood at 4.9%.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of the largest supermarket chains in Singapore, with 63 outlets located across the island.
The group sells a wide variety of both fresh foods and household products and sundries.
With more people telecommuting due to the pandemic, Sheng Siong saw its 2020 revenue surge by 40.6% year on year to S$1.4 billion.
Net profit after tax soared 83.7% year on year to S$139.1 million.
The retailer declared a final dividend of S$0.03. Together with its S$0.035 interim dividend, the full-year 2020 dividend came up to S$0.065.
At a share price of S$1.55, the group’s trailing dividend yield is around 4.2%.
Sheng Siong plans to continue expanding its network of outlets in Singapore and to work on improving comparable store sales.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, owns and operates the fibre network of Singapore’s next-generation nationwide broadband network (NBN).
The group’s network provides internet coverage to both residential homes and corporate clients around Singapore.
For its fiscal 2021 half-year ended 30 September 2020, NetLink’s revenue dipped by 2.5% year on year to S$181.5 million.
Profit after tax, however, inched up 1.5% year on year to S$44.8 million.
Distribution per unit was up slightly from S$0.0252 to S$0.0253.
The trailing 12-month dividend stood at S$0.0506, translating to a dividend yield of around 5.3% at the last traded price of S$0.96.
Residential connections increased by 1.9% to around 1.44 million connections, and NetLink will continue to expand its network to target more residential units and also non-building address points (NBAP).
NBAP will be crucial once 5G networks are online amid the proliferation of “smart” devices that can talk to one another, and represents a growth area for the group.
CSE Global (SGX: 544)
CSE Global is a technology company that offers cost-effective, integrated solutions for a wide variety of clients in the oil and gas, infrastructure and mining industries.
The group has a network of 41 offices worldwide and employs around 1,400 staff.
For 2020, CSE Global reported an 11.3% year on year increase in revenue to S$502.8 million.
Net profit after tax increased by 16.4% year on year to S$28 million, while operating cash flow more than doubled from S$18 million to S$48.5 million.
The board has recommended a final dividend of S$0.015. Together with the interim dividend of S$0.0125, the full-year 2020 dividend totals S$0.0275.
At the last traded share price of S$0.56, dividend yield stood at 4.9%.
The group is confident of achieving good performance in 2021 with an order book of S$236 million at end-2020.
It will also pursue value-accretive acquisitions to grow the business as it navigates the post-pandemic landscape.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land is a major property investment, development and management group.
The group owns and manages more than 850,000 square metres of prime office and luxury retail properties in Asian cities such as Singapore, Hong Kong, Beijing and Jakarta.
HongKong Land is a member of the Jardine Matheson Group (SGX: J36).
For 2020, revenue dipped by 9.7% year on year to US$2.1 billion due to lower contributions from development properties.
Underlying profit attributable to shareholders dipped by 11% year on year to US$963 million as rent reliefs were doled out to tenants affected by the crisis.
Despite the weaker results, Hongkong Land kept its full-year dividend constant at US$0.22 per share, consisting of a final dividend of US$0.16 and an interim dividend of US$0.06.
At the last traded share price of US$5.00, the property conglomerate’s shares offered a trailing dividend yield of 4.4%.
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Disclaimer: Royston Yang owns shares in NetLink NBN Trust.
