The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
If you enjoy receiving a steady stream of extra cash, dividend stocks are a great choice! These companies 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 particularly attractive. Here are five Singapore stocks that offer impressive dividend yields of 5.4% or more.
1. PropNex Ltd (SGX: OYY)
PropNex is a well-known name in the real estate industry, providing services such as real estate brokerage, training, and consultancy. Despite a challenging 2023, with revenue falling 18.6% to S$838.1 million and net profit dropping 23.3% to S$47.8 million, PropNex still managed to generate S$57.5 million in free cash flow. They declared a final dividend of S$0.035, bringing the total dividend for 2023 to S$0.06, resulting in a trailing dividend yield of 6.9%.
Management remains optimistic about the housing market in 2024, expecting stability driven by Singapore’s economic growth and potential lower global interest rates.
2. Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited (BSL) is a diversified 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, an electronics manufacturing services provider, operates in two main segments: consumer electronics (CE) and industrial and commercial electronics (ICE). Despite a 17.1% drop in revenue to HK$1.67 billion for FY2024, gross profit increased by 1.3% to HK$265.2 million due 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 reported 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, resulting in a trailing dividend yield of 6.4%.
NetLink’s residential connections grew to 1.51 million, and non-residential connections increased to 53,500, demonstrating strong demand for their services in both homes and businesses.
5. Singapore Airlines Limited (SGX: C6L)
Singapore Airlines (SIA), the nation's flagship airline, reported its highest-ever operating and net profit for FY2024. Revenue rose 7% to S$19 billion, and net profit climbed 24% to S$2.7 billion. SIA 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 boast a trailing dividend yield of 7.1%.
Takeaway
Investing in dividend stocks can be like receiving regular bonus checks while you wait for your investments to grow. PropNex, Boustead Singapore, Valuetronics, NetLink NBN Trust, and Singapore Airlines offer attractive dividend yields and have demonstrated strong performance. These companies are rewarding their shareholders, making them worth considering for your investment portfolio. By focusing on high-yield dividend stocks, you can enjoy a steady stream of income while potentially benefiting from capital appreciation over the long term.
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