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9 Singapore listed cash rich companies that pay more than 5% dividends

Dividend Stocks, SG, Stocks

Written by:

Alex Yeo

Time in the market is important, however, what is more important is being compensated for this time in the market. Here we have 9 Singapore cash rich companies that pay more than 5% dividend so as to be rewarded for time in the market as being invested is an opportunity cost.

To further make the selection more robust, we added a criteria, identifying only stocks who have a net cash holding that is at least 50% of its current market capitalisation so as to provide a margin of safety.

9 Singapore cash rich companies that pay more than 5% dividends

CompanyTickerMarket Cap (S$’m)5 year capital returnDividend YieldDividend Payout Ratio
Hotung Investments HoldingsSGX:BLS2020.5%12%78%
Sing Investments & FinanceSGX:S35229-1.4%5.5%40%
Riverstone Holdings LtdSGX:AP4105032.4%21%50%
Valuetronics Holdings LtdSGX:BN2226-40.8%7.1%49%
Hai Leck Holdings LtdSGX:BLH100-23.9%13.6% (inc special div)113%
Asia Enterprises Holdings LtdSGX:A5556-9.4%5%73%
NSL LtdSGX:N02314-42.1%5.9%381%
Sysma Holdings LtdSGX:5UO3522.7%6.8%48%
Jiutian Chemical Group ltdSGX:C8R207297%8.21%36%

1. Hotung Investments Holdings (SGX:BLS)

Hotung is Taiwan’s only leading venture capital investment management group. Since 1987, Hotung has invested in over 700 and over 200 have successfully been acquired through M&A or listed on the major stock exchanges. Hotung targets startups in the technologies and innovations field aiming to improve general living standards through sectors such as Ecommerce, Manufacturing, Healthcare, Biotech and Agricultural innovations as well as disruptive technologies such as Artificial Intelligence, IoT and Cloud services.

Hotung as a net cash position of approximately 61% of market cap and has a dividend yield of 12%. It has a track record of increasing its dividends over the years and based on its FY21 results, its dividend payout ratio is about 78%.

2. Sing Investments & Finance (SGX:S35)

Sing Investments & Finance is a licensed finance company under the Finance Companies Act.  The company is able to accept deposits from the general public and uses these in funds the provision of loans and credit facilities to individuals and corporations, particularly the small and medium-sized enterprises (SMEs) in Singapore.

Its products and services includes fixed deposits, personal financing products such as property and car loans, and corporate/SME financing products such as construction and equipment financing.

Sing Investments & Finance has a net cash position of approximately 108% of market cap and has a dividend yield of 5.5%. It has a track record of increasing its dividends over the years and based on its FY21 results, its dividend payout ratio is about 40%.

3. Riverstone Holdings Ltd (SGX:AP4)

Riverstone is one of the leading manufacturers of healthcare gloves, nitrile gloves, finger cots, face masks, packaging bags. These products are used mainly in the medical industry and also in clean rooms such as semiconductor manufacturing.

The company did extremely well in 2020 due to the COVID-19 pandemic and further outperformed in 2021. Riverstone has a net cash position of approximately 50% of market cap and has a dividend yield of 21%. It has a track record of increasing its dividends over the years even before the pandemic and based on its FY21 results, its dividend payout ratio is about 50%.

4. Valuetronics Holdings Ltd (SGX:AP4)

Valuetronics is an integrated electronics manufacturing services (EMS) provider, offering a competitive and broad combination of Design, Engineering, and Manufacturing services.

The company specialises in Original Equipment Manufacturing (OEM) services including PCBA assembly, and Box-Build Assembly, as well as Engineering and New Product Introduction (NPI) services.

Valuetronics is headquartered in Hong Kong, and its design and engineering center and an initial 500,000 sqft manufacturing facility are located in Guangdong, China.

In 2019, Valuetronics expanded its manufacturing foot print into Vinh Phuc province in Vietnam with a 550,000 sqft manufacturing facility.

Valuetronics has a net cash position of approximately 73% of market cap and has a dividend yield of 7.1%. Based on its FY21 results, its dividend payout ratio is about 49%.

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5. Hai Leck Holdings Ltd (SGX:BLH)

Hai Leck provides engineering, procurement and construction (EPC) services to the oil & gas, petrochemical, pharmaceutical and utilities industries. The company has a presence in Singapore, Malaysia and Thailand with a workforce of more than 2,000.

Hai Leck offers mechanical engineering services in structural steel, piping fabrication and installation, as well as plant equipment installation, maintenance, modifications and repairs. Hai Leck also provide scaffoldings services and corrosion prevention services, insulation services and refractory and passive fireproofing services, as well as general civil engineering services.

Hai Leck has a net cash position of approximately 60% of market cap and has a dividend yield of 13.6% due to a special dividend that forms 2/3 of the total dividend paid. Based on its FY21 results, its dividend payout ratio is about 113%.

6. Asia Enterprises Holdings Ltd (SGX:A55)

Asia Enterprises is a major distributor of steel products to industrial end-users, with an inventory of more than 1,200 steel products to customers involved primarily in marine and offshore, oil and gas, construction as well as the precision metal stamping, manufacturing and engineering/fabrication industries.

Asia Enterprises presently operates out of three facilities in Singapore – two warehouses and a steel processing plant-cum-warehouse with a combined land area of 45,934 square metres. To complement its distribution business, the Group also provides value-added precision steel processing services through its steel service centre, which is a joint-venture with Marubeni-Itochu Steel Inc.

Asia Enterprises plays a vital intermediary role in the steel industry value chain by bridging the gap that exists between demand from industrial end-users and supply from steel mills.

Asia Enterprises has a net cash position of approximately 64% of market cap and has a dividend yield of 5.0%. Based on its FY21 results, its dividend payout ratio is about 73%.

Since listing in 2005, Asia Enterprises has consistently paid dividends representing at least 40% of earnings every year.

7. NSL Ltd (SGX:N02)

NSL Ltd, formerly known as Natsteel and before that, The National Iron and Steel Mills is a company that has diversified and evolved over time. Currently, the company’s core businesses are Precast & Prefabricated Bathroom Unit (PBU) and Environmental Services.

The Precast & PBU division manufactures precast concrete components in Singapore, Malaysia and Dubai while the PBU business is a dominant producer in Scandinavia.

The Environmental Services division is a key player in integrated environmental services in Singapore, covering the treatment and logistics services of hazardous industrial wastewater from chemical sector and oily wastewater from both land and marine transportation sectors.

In addition, NSL has a majority shareholding in Raffles Marina Ltd, Asia’s Premier Marina Club in Tuas, Singapore, and an associate company in Germany, PEINER SMAG Lifting Technologies GmbH, which is one of the world’s largest producers of lifting accessories for bulk cargo and shipping containers.

NSL has a net cash position of approximately 69% of market cap and has a dividend yield of 5.9%. Based on its FY21 results, its dividend payout ratio is about 381% which shows that it is distributing excess capital to its shareholders.

8. Sysma Holdings Ltd (SGX:5UO)

Sysma Holdings Limited is a property developer with experience across various segments such as residential, commercial, industrial, Heritage and conservation and educational institution. Successful residential projects in Singapore include namely 28 RC Suite, 8M Residences and Charlton 18.

In FY2019, Sysma diversified into the United Kingdom when it acquired a 30% stake in Lascelles Park Limited, a property development company in the United Kingdom.

In FY2020, Sysma acquired the KH Engineering group which engages in the business of providing services in relation to foundation works and construction and soil investigation, treatment, and stabilisation in Singapore. In FY2021, Sysma completed the acquisition of Dae Sung Construction Pte. Ltd, a specialist in ground improvement works in Singapore.

Sysma has a net cash position of approximately 77% of market cap and has a dividend yield of 6.8%. Based on its FY21 results, its dividend payout ratio is about 48%.

9. Jiutian Chemical Group Limited (SGX:C8R)

Jiutian is a specialist in the fine chemical industry, engaged in the manufacture and production of dimethylformamide (DMF), methylamine, sodium hydrosulfite and Dimethylacetamide (DMAC). Jiutian also processes and sell consumable carbon dioxide, oxygen-18 and deuterium-depleted water.

The company’s production facilities are located in Anyang City, Henan Province, China with a total fine chemical products capacity of over 460,000 tons per annum, comprising 150,000 tons of DMF, 150,000 tons of methylamine, 140,000 tons of sodium hydrosulfite and 20,000 tons of DMAC.

Jiutian has a net cash position of approximately 75% of market cap and has a trailing fifteen month dividend yield 12.3%. The 1Q22 dividend alone accounted for a 6.25% yield and reason for the higher dividend yield is the strong 1Q22 results resulting in a dividend payout ratio of about 36%. Should it be able to continue on its strong performance for the rest of the year, the forward dividend yield could be as high as 25%.

Conclusion

One would realise that of the 9 stocks presented above, only 4 stocks saw a capital gain over a 5 year time frame. Even with a 5% annual dividend for the past 5 years, one would have still made losses on stocks that recorded large capital declines.

This demonstrates that merely looking at time in the market coupled with dividend yields may not be a profitable investment. However when a stock comes with a reasonable dividend yield of at least 5% coupled with an additional criteria such as a strong net cash position, the odds of a positive investment return increases.

1 thought on “9 Singapore listed cash rich companies that pay more than 5% dividends”

  1. Not trying to be picky but your title should say “9 Singapore-listed companies …”. Many of these companies are not Singapore companies.

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