Yahoo Finance Forget Keppel Ltd: 4 Singapore Stocks That Possess a Higher Dividend Yield
Income investors are constantly looking for stocks that pay out sustainable dividends.
Such stocks should also have an attractive dividend yield that helps them to beat inflation.
Blue-chip stock Keppel Ltd (SGX: BN4) is one stock that is popular with investors for its long track record and healthy dividend payments.
The stock is providing a yield of around 4.8% presently.
However, we managed to uncover four Singapore stocks that provide a higher dividend yield than Keppel.
Read on to find out more about these businesses.
OCBC Ltd (SGX: O39)
OCBC is Singapore’s second-largest bank by market capitalisation and offers a comprehensive range of banking, insurance, and investment services for its customers.
The lender reported a sparkling set of earnings for 2023 as higher interest rates boosted its net interest margin and net interest income.
Total income climbed 25% year on year to S$13.5 billion, buoyed by a 25% year-on-year rise in net interest income to S$9.6 billion.
Operating profit increased by 28% year on year to S$8.3 billion while net profit jumped 27% year on year to S$7 billion.
In line with the better results, OCBC paid out a total dividend of S$0.82 for 2023, up from the S$0.68 that it paid out a year ago.
The bank’s trailing dividend yield stood at 6.1%.
Looking ahead, the bank’s CEO Helen Wong expects Asia to perform better despite an impending global growth slowdown.
Interest rates may head downwards in the second half of the year but the bank expects its net interest margin to stay elevated at between 2.2% to 2.25%.
Hongkong Land Holdings (SGX: H78)
Hongkong Land, or HKL, is a property development, investment and management group that owns and manages more than 850,000 square metres of prime office and luxury retail assets in cities such as Singapore, Hong Kong, Beijing, and Jakarta.
The property giant reported a steady performance for 2023 even as macroeconomic conditions presented challenges to its business.
Revenue for 2023 fell by close to 18% year on year to US$1.8 billion as HKL recognised lower sales of development properties.
The group reported a loss of US$582 million for the year because of unrealised losses from fair value changes in its investment properties.
Excluding these, underlying net profit would have fallen by just 5% year on year to US$734 million.
HKL kept its dividends constant at US$0.22 for 2023 despite the slightly weaker results.
Shares of the property developer provide a dividend yield of 6.8%.
Market conditions are expected to remain challenging in both China and Hong Kong but its resilient investment properties will provide a base of recurring income for the group.
PropNex Ltd (SGX: OYY)
PropNex is an integrated real estate services group with 12,233 sales professionals as of 15 February 2024.
Its key business segments include real estate brokerage, training, and consultancy.
Revenue for 2023 fell by 18.6% year on year to S$838.1 million as buying sentiment dampened and transaction volumes fell amid property cooling measures introduced by the government.
Net profit dipped by 23.3% year on year to S$47.8 million.
Despite the lower profit, PropNex still generated positive free cash flow of S$57.6 million, 12.8% higher than the S$51 million churned out a year ago.
2023 saw a total dividend of S$0.06 declared comprising an interim dividend of S$0.025 and a final dividend of S$0.035.
PropNex’s shares offer a trailing dividend yield of 6.6%.
Management expects the housing market to remain stable this year, supported by growth in Singapore’s economy along with the impending easing of interest rates later this year.
Olam Group (SGX: VC2)
Olam is a leading agribusiness group supplying food, ingredients, and feed for up to 22,000 customers worldwide.
The group’s value chain spans more than 60 countries and includes farming, processing, and distribution operations.
Sales fell by 12.1% year on year for 2023 to S$48.3 billion.
The group also saw a sharp 52% year-on-year increase in finance costs while its share of profits from associates plunged by nearly 93% year on year.
The result was a 55.7% year on year fall in net profit to S$278.7 million.
Olam paid out a final dividend of S$0.04, taking 2023’s total dividend to S$0.07, lower than the prior year’s S$0.085.
The commodity group’s shares offer a trailing dividend yield of 7.1%.
CEO and co-founder Sunny Verghese remained upbeat on Olam’s prospects.
The group is launching a share buyback programme for up to a maximum of 5% of its outstanding shares.
Olam is also committed to pursuing the listings of Olam Food Ingredients and Olam Agri which should act as catalysts to unlock value for investors.
We’ve discovered 5 SGX stocks that not only offer better returns than fixed deposits but also have the potential to beat inflation. Plus, these stocks provide capital growth and can significantly compound your wealth in the long term. If you’re looking to make your money work harder for you, download our FREE report for details on these five stocks.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
The post Forget Keppel Ltd: 4 Singapore Stocks That Possess a Higher Dividend Yield appeared first on The Smart Investor.
