SINGAPORE: Singapore’s Central Provident Fund (CPF) scheme is a reliable way to save for retirement. The CPF Special Account (SA) provided an interest rate of 4.08% from July 1, 2024 to Sept 30, 2024.
While this rate is attractive, here are five Singapore stocks with dividends surpassing CPF SA rates, according to The Smart Investor.
1. Straits Trading Company
Straits Trading Company (STC) is a diversified conglomerate involved in resources, property, and hospitality.
Despite a challenging 2023, marked by high interest rates and a significant decline in real estate valuations, STC remains a notable player.
In 2023, STC’s revenue dropped by 6.8% year-on-year to S$491.7 million, primarily due to a 10.1% decline in tin mining and smelting revenue. However, this was partially offset by a 21.4% increase in property revenue.
The company posted a loss of S$28.6 million, a sharp contrast to the S$551.3 million profit the previous year, largely due to a downward valuation adjustment of investment properties.
Despite the downturn, STC managed a positive free cash flow of S$28.7 million and declared an interim dividend of S$0.08, resulting in a trailing dividend yield of 5.7%.
2. Far East Hospitality Trust
Far East Hospitality Trust (FEHT) owns 12 properties, including hotels and serviced residences in Singapore, valued at approximately S$2.5 billion as of Dec 31, 2023.
FEHT saw a strong recovery in 2023 as travel demand surged. Revenue rose 27.8% year-on-year to S$106.8 million, and net property income (NPI) increased by 27.7% to S$98.7 million.
The trust’s distribution per stapled security (DPSS) grew by 25.1% to S$0.0409, resulting in a trailing dividend yield of 6.6%.
The positive trend continued into the first quarter of 2024, with revenue climbing 7.5% year-on-year to S$27.1 million and NPI increasing by 6% to S$25.1 million.
3. Uni-Asia Group Ltd
Uni-Asia Group (UAG) is an alternative investment group with a focus on handy dry bulk ships and property investments.
The company faced a tough 2023, with total income dropping by a third year-on-year to US$58 million (approximately S$78.5 million) due to significant declines in charter and fee income.
Operating profit also plunged by 68% to US$10.5 million (approximately S$14.2 million), and net profit fell by 82% to US$5 million (approximately S$6.8 million).
Despite these setbacks, UAG generated a positive free cash flow of US$12.6 million (approximately S$17.1 million) and declared a final dividend of S$0.022 (approximately S$0.030), bringing the total dividend for the year to S$0.044 (approximately S$0.060).
This translates to a trailing dividend yield of 5.5%.
4. UMS Holdings Ltd
UMS Holdings provides manufacturing and engineering services to the semiconductor and related industries.
The group’s performance in the first quarter of 2024 was impacted by the downturn in the semiconductor sector, with revenue falling by 33% year-on-year to S$54 million and net profit declining by 44% to S$9.8 million.
Nevertheless, UMS managed a positive free cash flow of S$2.7 million and increased its interim dividend by 20% from S$0.01 to S$0.012.
The trailing 12-month dividend totalled S$0.058, resulting in a trailing dividend yield of 4.8%. Additionally, UMS completed a new 300,000-square-foot factory in Penang, enhancing its production capabilities.
5. HRNetGroup Ltd
HRNetGroup is a leading staffing and recruitment firm operating across 17 Asian cities with over 900 consultants. The company owns 14 brands, including HRnetOne, PeopleFirst, Recruit Express, and SearchAsia.
In 2023, HRNetGroup faced challenges as professional recruitment demand softened. Revenue dropped by 5.4% year-on-year to S$578.5 million, and net profit decreased by 5.9% to S$63.6 million.
Despite this, the company generated a strong free cash flow of S$55.4 million and paid out S$0.04 per share in dividends, resulting in a trailing dividend yield of 5.8%.
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Read also: 4 Singapore blue-chip stocks showing strong potential for profit growth
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions
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