5 SGX Stocks with Dividend Yield Higher than 5.4%

5 Singapore Stocks with High Dividend Yields: Get Steady Income!

If you enjoy getting a steady stream of extra cash, then dividend stocks are for you! These are companies that pay you part of their profits just for holding their shares. However, not all dividend stocks are created equal. Some offer higher dividend yields, making them more attractive. 

Let's take a look at five Singapore stocks that offer attractive dividend yields of 5.4% or more.

1. PropNex Ltd (SGX: OYY)

PropNex is a big name in real estate, offering services like real estate brokerage, training, and consultancy. As of February 2024, they had 12,233 sales professionals helping people buy and sell homes.

Even though 2023 was tough for PropNex, with revenue falling 18.6% to S$838.1 million and net profit dropping 23.3% to S$47.8 million, they still managed to generate S$57.5 million in free cash flow. They also declared a final dividend of S$0.035, bringing the total dividend for 2023 to S$0.06. This gives PropNex shares a trailing dividend yield of 6.9%.

Despite the challenges, management expects the housing market to remain stable in 2024, thanks to Singapore’s economic growth and potential lower global interest rates.

2. Boustead Singapore Limited (SGX: F9D)

Boustead Singapore Limited, or BSL, is a diverse company with four main divisions: energy engineering, real estate, geospatial, and healthcare.

For the fiscal year ending March 2024, BSL’s revenue jumped 37% to S$767.6 million, driven by strong performance in their geospatial and energy engineering divisions. Gross profit soared 44% to S$226.7 million, and net profit (excluding one-off items) doubled to S$63.3 million.

BSL declared a final dividend of S$0.04, bringing the total dividend for FY2024 to S$0.055, giving their shares a trailing dividend yield of 5.4%. They ended the year with a solid order book backlog of S$247 million and a record high deferred services backlog of S$129 million in their Geospatial division.

3. Valuetronics Holdings Limited (SGX: BN2)

Valuetronics is an electronics manufacturing services provider with two main segments: consumer electronics (CE) and industrial and commercial electronics (ICE). They have factories in China and Vietnam.

For FY2024, Valuetronics had mixed results. Revenue dropped 17.1% to HK$1.67 billion, but gross profit increased by 1.3% to HK$265.2 million, thanks to improved margins. Net profit surged nearly 30% to HK$159.6 million.

Valuetronics declared a final and special dividend of HK$0.09 and HK$0.08, respectively. Combined with an interim dividend of HK$0.08, the total dividend for FY2024 was HK$0.25, giving their shares a trailing dividend yield of 6.9%. Management plans to explore new projects and seek new customers to grow their business.

4. NetLink NBN Trust (SGX: CJLU)

NetLink NBN Trust designs, owns, and operates the fibre network infrastructure of Singapore’s next-generation nationwide broadband network (NBN).

In FY2024, NetLink announced steady results, with revenue increasing by 1.9% to S$411.3 million due to more residential connections. Although net profit fell by 5.5% due to a one-off write-off, the distribution per unit rose by 1.1% to S$0.053, giving their units a trailing dividend yield of 6.4%.

NetLink’s residential connections grew to 1.51 million, and non-residential connections increased to 53,500. This shows strong demand for their services in both homes and businesses.

5. Singapore Airlines Limited (SGX: C6L)

Singapore Airlines, or SIA, is the nation's flagship airline. For FY2024, SIA reported its highest-ever operating and net profit. Revenue rose 7% to S$19 billion, and net profit climbed 24% to S$2.7 billion. They also generated S$3.8 billion in free cash flow.

In line with their strong performance, SIA proposed a final dividend of S$0.38, bringing the total dividend for the year to S$0.48. At the last share price of S$6.79, SIA's shares sport a trailing dividend yield of 7.1%.

Takeaway

Investing in dividend stocks can be like getting regular bonus checks while you wait for your investments to grow. PropNex, Boustead Singapore, Valuetronics, NetLink NBN Trust, and Singapore Airlines are offering attractive dividend yields. These companies are performing well and rewarding their shareholders, making them worth considering for your investment portfolio.