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6 High Dividend Stocks In Singapore

It’s coming to the end of 2015.

​As an investor, have you thought of what are the high dividend stocks in SGX Singapore?

​Probably you had.

​I had run through my ShareInvestors screener, setting criteria on 3% dividend for the past 3 consecutive years.

​Removed Schips and stocks that are under the suspended list( yeah, it happens). Then I sorted it in the order of the highest dividend yield.

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​Before you read any further, please be caution that at the time of writing STI is trending down.

That’s to say, dividend yield will look more attractive than usual because of its denominator: the price is falling hence the yield goes up.

Without futher ado, let's see what we got!

#1 CDW HOLDING LIMITED

D38

Div Yield : 10.835

Payout : 0.666

PE : 6.226

P/B : 0.7301

D/E : 0.218

PE & Div is based on AR DEC 2014

It is hard not to be at the top of the list when the dividend yield is 10%.

CDW is a japanese run company that produce and trade niche precision components. Low P/B and P/E ratio of 0.7 and 6 respectively as compared to its industry and market in general.

Debt to equity ratio of 0.20 is quite decent. CDW has been paying consistent dividends since 2008. Cash flow wise it has been positive except 2007 and 2013.


Best-read : Is This Share – With A 7.8% Dividend Yield – A Good Dividend Stock?

Discussion : http://www.valuebuddies.com/thread-1099.html​

#2 CDL HOSPITALITY TRUSTS

J85

Div Yield : 8.316

Payout : 0.9

PE : 10.601

P/B : 0.8292

D/Total assets : 0.37

PE & Div is based on AR April 2015

Unsurprisingly, Reit is on the list. High dividend yield of 8%.

CDL is a hotel Reits that 71% of its portfolio is in Singapore, and remaining in AU, UK, NZ, Maldives and JP. High payout ratio as usual because of it Reit status. Currently trading under its book value with a P/B of 0.83.

In gearing wise the average Reits is about 35% and the average Hotel Reit is 35%. Hence its debt to total assets ratio of 0.37 is considered average. I do not have free cash flow data extended beyond 2012. 2 out of 3 the past years has a positive free cash flow.

Best-read : 

3 things you should know about cdl hospitality trusts latest quarterly earnings

Discussion : http://www.valuebuddies.com/thread-798.html

#3 CAMBRIDGE INDUSTRIAL TRUST

J91U

Div Yield : 8.42

Payout : 1.094

PE : 16.676

P/B : 0.8662

D/Total assets : 0.37

PE & Div is based on AR April 2015

Another Reit we have here. An Industrial Reit. Div Yield of 8.42%

A high P/E of 17 with Price to Book of 0.87 which is currently trading below its book value. The average debt to total assets for industrial Reits is about 35%. Hence its gearing ratio is still considered as average. Free cash flow has all been negative over the past three years.

Best-read : What Investors Need to Know about Cambridge Industrial Trust’s Latest Full-Year Earnings

Discussion : http://www.valuebuddies.com/thread-147.html

#4 CACHE LOGISTICS TRUST

K2LU

Div Yield : 8.213

Payout : 1

PE : 12.400

P/B : 0.9472

D/Total assets : 38%

PE & Div is based on AR April 2015

The third Reit we have here. Another industrial Reit. Div. Yield of 8.21%

​The P/E ratio of 12.4 which is decent given the average P/E ratio for industrial Reits is 12. P/B of 0.94 showing the stock is slightly trading below its market value. Gearing ratio of 38% is pretty average as well as the above mentioned the average industrial Reit gearing is 35%. In term free cash flow, there has been 2 out of the past 3 years having negative free cash flow.

Best-read : Is Cache Logistics Trust Possibly An Undervalued REIT Now?

Discussion : http://www.valuebuddies.com/thread-847.html

#5 Aspial

A30

Div Yield : 5.977

Payout : 0.747

PE : 12.956

P/B : 1.7825

D/Total assets : 3.404

PE & Div is based on AR April 2015

Finally, no more Reit. Aspial is a holding company that has its business in jewellery retail, property development and financial services. Div. Yield of 6%.

Current P/E ratio is 13 which is slightly above STI ETF of 12. In term of earnings breakdown property development consist of 50% of its revenue and the remainings about 25% in each retail and financial services i.e maxi-cash.

P/B ratio of 1.7 is trading way above of its book value. And the D/E ratio of 3.4 which is really high as Aspial has been very aggressive on its business expansion.

You might have aware of their recent 5.25% bond issue for its refinancing needs. How about its free cash flow? It has all been negative for the past three years!

Best-read : 

5 things you should know about Aspial corporation

Discussion : 

​http://www.valuebuddies.com/thread-820.html

#6 CSE Global

544

Div Yield : 5.789

Payout : 0.401

PE : 6.933

P/B : 1.0523

D/Total assets : 0.209

PE & Div is based on AR April 2015

​CSE Global, a provider of integrated solutions to industries in the Automation, Telecommunications and Environmental sectors.

Div. Yield Of 5.8%

The P/E ratio of 7 looks to be cheap and currently it is trading at its book value. Payout ratio of 0.4 which is consistent to its average payout ratio of 0.4 since 2006 with the exception on 2013 as there was a special dividend declared. Debt to equity of 0.209 is still considered low.

In term of free cash flow it has all been positive over the past three years.

Best-read : 

https://www.fool.sg/2014/07/11/singapore-flyer-of-the-week-cse-global-limited/

Discussion : 

​http://www.valuebuddies.com/thread-820.html

You Can Screen The Stocks By Yourself Via SGX Stock Screener:

Do you know that you can screen the high sgx dividend stocks by yourself?

The answer is yes you can!

And it’s not hard to do so.I’m using ShareInvestor a paid service, but you can use SGX stock screener which is free.

If don’t know how, no worries.

Over this post I will walk you through step-by-step on how you can use SGX screener to pull a list of stocks.

PS: High dividend yielding stocks may look good on number but never forget the risk entails on the stocks. CFA Wilfred Lin has a video explaining about high dividend yield stock which I find it very helpful.

​One of his explanations that resonates well with me is the part where he talked about why we should not see dividend is a realized gain hence it’s safer than paper gain. And he added many fear that the company may be mismanaged hence paper gain will disappear where else dividend is “cash in the pocket.”

​He explains that this is a non-systematic risks i.e stock- or industry-specific hazard. Therefore it should be addressed at PORTFOLIO LEVEL meaning through portfolio diversification rather than seeking for high dividend stock to diversify business risk!

In fact whether the stock pay dividends or not has 0% impact to the total shareholder returns as it’s simply just a cash flow. Then why investor would still seek for dividends?

​The answer is a simple human bias which he explained is called “Self-Control” and such behaviour bias tends to produce sub-optimal decision making toward investing i.e going after dividend strategy and neglecting better investing strategy which may still pay dividend but not as high.

​But that’s not to say that we should stay away from dividend. Because studies show that dividend returns represent a large portion of total returns i.e cap. + div..

​However, it’s important NOT to put cart before the horse - good fundamental therefore able to issue good steady dividends(which explains the result) rather than “the company pays good dividend therefore it’s a good company!

​Similarly, a person is highly paid NOT because he can walk to bank and withdraw big money rather it’s because his highly paid job got him the big money in the first place. And clearly withdrawing money from bank is not an income :)

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singapore dividends - October 21, 2016

Hi, you can find lots of high dividend stocks opportunities in our site. You can choose for a country, sector or industry. Singapore stocks are really interesting.

M1.- http://www.dividendsranking.com/M1-dividend-yield.html
Keppel.-http://www.dividendsranking.com/Keppel-dividend-yield.html

An a lot of others are paying great.

Regards

Reply
Jamie Lee - January 5, 2017

hi i am a new stock investor. did not really understand all the financial terms till i chanced upon this page for dividends stocks in singapore, it is marketed to ladies, but the idea is the same
http://thenewsavvy.com/invest/equities/dividend-investing-101/

read it, realise dividend investing is a good fit for me, googled and saw your article too. it would be good that i start with these 6 stocks, read about them and understand it before i go on =)
thanks so much for the write up!

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