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Beyond the STI: 3 Cash-Rich Singapore Stocks with Dividend Yields of 4% or more
The Smart Investor· 2025-09-22 03:30
Core Insights - The article emphasizes the importance of identifying cash-rich companies that can sustain dividends, moving beyond the Straits Times Index (STI) to find suitable investment opportunities [1][2][17] Company Summaries SBS Transit (SGX: S61) - SBS Transit is Singapore's largest bus and rail operator with a strong balance sheet, holding S$340.8 million in cash and no debt as of June 30, 2025 [3][4] - The company reported a 4.5% year-on-year decline in revenue to S$745.9 million in the first half of 2025, primarily due to the expiry of the Jurong West bus package [4] - Despite the revenue decline, free cash flow turned positive at S$29.1 million, and an interim dividend of S$0.0895 per share was declared, a 60% increase from the previous year [5] - The current dividend yield stands at 7.1%, and future revenue growth is expected from rail operations [5][6] VICOM (SGX: WJP) - VICOM, a leading vehicle inspection provider, holds a 73% market share in Singapore and has a debt-free balance sheet with S$55.6 million in cash as of June 30, 2025 [8][9] - The company experienced a 24.1% year-on-year revenue increase to nearly S$70 million, driven by the Electronic Road Pricing 2.0 project and increased testing volumes [9][10] - Profit attributable to shareholders rose 10.2% year-on-year to S$15.6 million, while an interim dividend of S$0.031 per share was declared, reflecting a 10.7% increase from the previous year [10][11] Food Empire (SGX: F03) - Food Empire maintains a healthy balance sheet with US$135.3 million in cash against total debt of US$91.3 million, resulting in a net cash position of US$44 million as of June 30, 2025 [12] - The company reported a nearly 22% year-on-year revenue increase to over US$274 million in the first half of 2025, with significant contributions from Vietnam and Russia [13][14] - Despite a net loss from a one-off fair value loss, normalized net profit rose 35.7% year-on-year to US$31.5 million, and free cash flow turned positive at US$20.5 million [14][15] - An interim dividend of S$0.03 per share was declared, yielding 4.1% at the current stock price [15] Investment Insights - The article highlights that companies like SBS Transit, VICOM, and Food Empire demonstrate that strong cash positions and disciplined capital management can support attractive dividend yields [17] - The focus should be on businesses with resilient balance sheets and the ability to generate steady cash flows to ensure sustainable dividend income [18]
100 Sustainable Dividend Dogs: 47 "Safer", 3 Ideal August Buys, And 7 To Watch
Seeking Alpha· 2025-08-19 18:57
Group 1 - The article highlights the top 100 sustainable companies identified by Calvert Research and Management based on an annual review of over 230 Environmental, Social, and Governance (ESG) performance indicators [1] - Key ESG performance indicators include workplace diversity, data security, and greenhouse-gas emissions, which are critical for assessing corporate sustainability [1] Group 2 - The article mentions a live video feature on Facebook called the Underdog Daily Dividend Show, which showcases portfolio candidates for investment [2] - The show encourages audience interaction by allowing viewers to comment on their favorite or least favorite stock tickers for potential inclusion in future reports [2]