Hourglass and 2 other SGX dividend stocks to consider

As the global payments landscape evolves with initiatives such as the European Payments Initiative, investors can find stability and growth potential in dividend stocks amid market fluctuations. In Singapore, where financial markets are known for their robustness, dividend stocks such as Hour Glass can offer investors a mix of income and relative safety in times of uncertainty.

Top 10 Dividend Stocks in Singapore

Click here to see the full list of 21 stocks in our pick of the top SGX dividend stocks.

Here we highlight a subset of our favorite stocks from the filter.

Simply Wall St Dividend Rating: ★★★★☆☆

Preview: The Hour Glass Limited operates as an investment holding company, specializing in the retail and distribution of watches, jewelry and other luxury products in Singapore, Hong Kong, Japan, Australia, New Zealand. Zealand, Malaysia, Thailand and Vietnam, with a market capitalization of SGD 1.00 billion.

Operations: The Hour Glass Limited generates its revenue primarily through the retailing and distribution of watches, jewelry and other luxury items, totaling SGD 1.13 billion.

Dividend yield: 5.2%

Hour Glass Limited, despite a slight decline in net profit from SGD172.37 million to SGD156.49 million in FY2024, maintained its dividend at 6 cents per share, totaling SGD38.996 million. With a payout ratio of 33.5% and a cash payout ratio of 46.3%, dividends are well covered by both earnings and cash flow, demonstrating sustainability despite past volatility dividend payments and an unreliable track record over the past decade. The company’s P/E ratio is favorable at 6.4x, compared to the broader Singapore market average of 12x, although its dividend yield of 5.19% remains below the top quartile of SG market payers.

Simply Wall St Dividend Rating: ★★★★★☆

Preview: Singapore Airlines Limited operates passenger and cargo air transportation under the Singapore Airlines and Scoot brands in various regions, including East Asia, the Americas, Europe, the South West Pacific, Asia West and Africa, with a market capitalization of approximately SGD 24.17 billion.

The story continues

Operations: Singapore Airlines Limited generates revenue primarily through its full-service carrier segment at SGD16.18 billion, followed by its low-cost carrier operations at SGD2.45 billion and engineering services which contribute 1, 09 billion SGD.

Dividend yield: 7.1%

Singapore Airlines, with a dividend yield of 7.08%, ranks in the top 25% of payers in the SG market. Its dividends are supported by earnings and cash flow, with a payout ratio of 75.9% and a cash payout ratio of 45.9%. However, its dividend history has been volatile over the past decade. Despite strong historical earnings growth, forecasts predict a significant decline in earnings over the next three years. Recent expansions include the establishment of Singapore Airlines Foundation Ltd., which focuses on R&D and social support initiatives.

Simply Wall St Dividend Rating: ★★★★☆☆

Preview: Delfi Limited is an investment holding company engaged in the manufacturing, marketing, distribution and sale of chocolate and chocolate confectionery products in Indonesia, the Philippines, Malaysia, Singapore and other international markets with a market capitalization of SGD534.76 million.

Operations: Delfi Limited generates SGD 370.41 million in revenue in Indonesia and SGD 185.07 million in other regional markets.

Dividend yield: 6.7%

Delfi Limited presents a mixed profile for dividend investors. Although its dividend yield of 6.68% is higher than the market average, its sustainability is questionable with a cash payout ratio of 1,776.7%, indicating that dividends are not well covered by dividends. cash flow. Additionally, dividends have shown some volatility over the past decade, a situation further complicated by earnings that do not fully cover dividend payments. Recent board changes could influence future strategies and governance, which could impact financial stability and dividend policies.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SGX:AGS SGX:C6L and SGX:P34.

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