Image Credits: The Edge Singapore
As macroeconomic conditions remain turbulent, marked by high interest rates and surging inflation, investors are increasingly seeking reliable stocks with stable dividend yields. In this challenging environment, three Singaporean companies stand out for their resilience and attractive dividend returns, each boasting yields of 4.2% or higher.
VICOM (SGX: WJP), a leading provider of inspection and technical testing services, has maintained its strong market position despite economic pressures. The company dominates the vehicle inspection sector with over a 72% market share as of 2023. VICOM’s performance for the first half of 2024 (1H 2024) reflects its stability, with revenue growing 0.8% year-on-year to S$56.3 million, and operating profit rising 1.6% to S$16.8 million. Net profit increased by 1.3% to S$14.1 million. The company declared an interim dividend of S$0.028 per share, slightly up from the previous year, and reported a trailing 12-month dividend yield of 4.2%. VICOM’s focus on vehicle inspection remains a steady revenue stream, though it anticipates profit margins may face pressure from increasing competition in non-vehicle testing.
CSE Global (SGX: 544)**, a systems integrator specializing in electrification, communications, and automation solutions, has also demonstrated financial robustness. Operating across 16 countries with 58 offices and over 2,000 employees, CSE Global reported a notable 22.8% increase in revenue for 1H 2024, reaching S$428.9 million. The company has consistently paid out S$0.0275 per share annually over the past five years, reflecting its commitment to returning value to shareholders.
These companies represent a solid choice for investors seeking dependable income amidst economic volatility. Both VICOM and CSE Global have proven their ability to deliver stable dividends and maintain operational strength, providing a safe haven for investors navigating the current financial landscape.