Yahoo Finance Avoid Metro Holdings On SGX And Explore This One Attractive Dividend Stock Instead
Dividend-paying stocks are often sought after for their potential to provide a steady income stream. However, it's crucial to examine the sustainability of these dividends. Companies like Metro Holdings, with high payout ratios, may indicate that their dividends could be at risk, making them less attractive for long-term investment stability.
Top 10 Dividend Stocks In Singapore
Name | Dividend Yield | Dividend Rating |
BRC Asia (SGX:BEC) | 7.34% | ★★★★★☆ |
China Sunsine Chemical Holdings (SGX:QES) | 6.34% | ★★★★★☆ |
Civmec (SGX:P9D) | 6.00% | ★★★★★☆ |
Singapore Exchange (SGX:S68) | 3.62% | ★★★★★☆ |
Multi-Chem (SGX:AWZ) | 8.80% | ★★★★★☆ |
UOB-Kay Hian Holdings (SGX:U10) | 6.87% | ★★★★★☆ |
UOL Group (SGX:U14) | 3.82% | ★★★★★☆ |
Bumitama Agri (SGX:P8Z) | 6.77% | ★★★★★☆ |
Singapore Airlines (SGX:C6L) | 6.98% | ★★★★★☆ |
YHI International (SGX:BPF) | 6.56% | ★★★★★☆ |
Click here to see the full list of 21 stocks from our Top SGX Dividend Stocks screener.
Let's uncover one of the gems from our specialized screener and one you can probably ignore.
Top Pick
Multi-Chem
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Multi-Chem Limited, primarily an investment holding company, operates in the distribution of information technology products across regions including Singapore, Greater China, Australia, and India, with a market capitalization of SGD 248.66 million.
Operations: The company generates revenue from its IT business in Singapore (SGD 372.78 million), Australia (SGD 54.60 million), India (SGD 40.56 million), Greater China (SGD 34.96 million), and other regions (SGD 153.93 million), along with a smaller segment in PCB business in Singapore (SGD 1.79 million).
Dividend Yield: 8.8%
Multi-Chem Limited, a Singapore-based company, maintains a stable dividend cover with its earnings and cash flows adequately covering an 80.7% payout ratio and an 88.1% cash payout ratio respectively. This financial prudence contrasts sharply with some peers struggling with unsustainable high payout ratios. However, investors should note Multi-Chem's dividend history has been marked by volatility over the past decade, reflecting some inconsistency in payouts despite recent improvements in earnings growth (35.6% year-over-year). Recent board enhancements could signal stronger governance ahead, potentially stabilizing future dividends.
One To Reconsider
Metro Holdings
Simply Wall St Dividend Rating: ★☆☆☆☆☆
Overview: Metro Holdings Limited operates in retail, as well as property development and investment, across Singapore, China, Indonesia, the UK, and Australia, with a market capitalization of approximately SGD 397.46 million.
Operations: The company generates revenue through two main segments: retail, which brought in SGD 105.44 million, and property development and investment, contributing SGD 5.48 million.
Dividend Yield: 4.2%
Metro Holdings Limited faces significant challenges as a dividend stock. With a high payout ratio of 113.8% and an even higher cash payout ratio of 18.42, its dividends are poorly covered by both earnings and cash flows, indicating potential sustainability issues. Additionally, the company's dividend yield of 4.17% is below the top quartile in Singapore's market, further diminishing its attractiveness to income-focused investors. Recent financials show declining revenues and net income, compounding concerns about its ability to maintain dividends without financial strain.
Turning Ideas Into Actions
Click this link to deep-dive into the 21 companies within our Top SGX Dividend Stocks screener.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SGX:AWZSGX:M01 and
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