Top SGX Dividend Stocks to Consider in July 2024

As global markets continue to navigate volatile economic conditions, the Singapore Exchange (SGX) remains a focal point for investors seeking stability and yield. In this context, dividend stocks stand out as particularly attractive options for those looking to generate regular income from their investments.

Top 10 Dividend Stocks in Singapore

Click here to see the full list of 21 stocks in our Top SGX Dividend Stocks screener.

Let’s take a closer look at some of our picks from the featured companies.

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

Preview: BRC Asia Limited operates in the prefabrication of steel reinforcement for concrete, serving markets in Singapore, Australia, Brunei, Hong Kong, Indonesia, Malaysia, Thailand, India and internationally; its market capitalization is approximately SGD 655.70 million.

Operations: BRC Asia Limited generates revenue through two main segments: trading, which generated SGD 319.71 million, and manufacturing and production, contributing SGD 1.35 billion.

Dividend yield: 6.7%

Despite a history of volatile dividends, BRC Asia Limited has shown promising financial growth with profits rising 14.9% last year to S$38.53 million and sales up to S$758.29 million. The company maintains a low payout ratio of 35.9%, ensuring dividends are well covered by earnings, although its cash payout ratio of 85.3% suggests tighter cash flow coverage. Recent measures include an interim dividend scheduled for payment in November, reflecting a level of commitment to shareholder returns amid a volatile dividend history.

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

Preview: DBS Group Holdings Ltd operates as a commercial bank providing financial services in Singapore, Hong Kong, Greater China, South and Southeast Asia, with a market capitalisation of approximately SGD 104.95 billion.

Operations: DBS Group Holdings Ltd generates its revenues primarily from commercial banking and financial services in key regions including Singapore, Hong Kong, Greater China, South and Southeast Asia.

The story continues

Dividend yield: 5.3%

DBS Group Holdings has seen fluctuations in its dividend payments over the past decade, with a recent increase in the interim dividend to S$0.54 per share. Despite this volatility, dividends are currently supported by a payout ratio of 50.8%, with projections showing coverage improving in three years to 67.1%. However, its dividend yield of 5.32% remains below the top quartile of the Singapore market at 6.18%. The recent earnings growth and management changes are aimed at improving operational stability and addressing past service disruptions.

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

Preview: Bumitama Agri Ltd. is an Indonesia-based investment holding company engaged in the production and trading of crude palm oil and palm kernel oil, with a market capitalization of approximately SGD 1.28 billion.

Operations: Bumitama Agri Ltd. generates IDR 15.44 billion mainly from its palm oil plantations and mills.

Dividend yield: 6.4%

Bumitama Agri’s dividend track record is volatile, with payments exhibiting some volatility over the past decade. Despite this, the company’s dividends are reasonably covered by earnings and cash flow, with a payout ratio of 40.4% and a cash payout ratio of 60.8%. Trading at 52.9% below its estimated fair value, it offers relative market accessibility. However, earnings are expected to decline by an average of 5.4% per year over the next three years. Recent board improvements could have a positive impact on governance and strategic direction.

Key points to remember

• Click here to access our full index of the 21 best SGX dividend stocks.

• Are you a shareholder in one or more of these companies? Make sure you’re never caught off guard by adding your portfolio to Simply Wall St to receive timely alerts on important stock market developments.

• Enhance your portfolio with Simply Wall St, the ultimate app for investors looking for global market coverage.

Curious about other options?

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

Companies discussed in this article include SGX:BEC SGX:D05 and SGX:P8Z.

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