💰SGX's High-dividend Stocks like BN4, U96, & AWI Show Robust Growth Potential
💰 Dividend Picks | Brave out the bad weather: BN4/U96/AWI
💰 U.S. stock markets experienced a broad decline, largely driven by a drop in technology stocks, partly easing risk-on sentiment.
💹 $Keppel(BN4.SI)$/$SEMBCORP INDUSTRIES LTD(U96.SI)$/$Thakral(AWI.SI)$: Year-to-date gains range from 20% to 107%, with earnings reports set to be released soon.
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| FIRE - Financial Independence & Retiring Early
A 35-year-old user on r/Fire inquired about the time required to grow a net worth of $400,000 to $1 million. The post drew over 100 real-life experiences, summarizing that the required timeframe is typically 3 to 9 years, with most reaching $1 million in 4 to 5 years. The key strategies remain "high savings + low-cost index funds + consistent investments," exemplified by a portfolio of 50% VOO/VT/VTI ETFs and 50% speculative picks (TSLA, PLTR, etc.).
Additionally, the Rule of 72 is a widely accepted method among users for calculating investment growth. This fundamental financial concept provides a quick way to estimate the time required for an investment to double, based on a fixed annual return rate. For instance, with an initial investment of $100 and a compound annual interest rate of 9%, dividing 72 by 9 results in 8, indicating it would take approximately 8 years to grow the investment to $200.
Recently, a UBS survey indicated that the average net worth of global family offices has reached $2.7 billion, with increased interest in Chinese assets. In the Asia-Pacific region, 30% of family offices plan to allocate more to Chinese assets, while globally, 19% share this intention. Over the next five years, 48% of Asia-Pacific family offices plan to increase holdings in developed market stocks, and 40% in emerging market stocks, with about one-third aiming to increase their gold investments.
SGX high-dividend stocks also show significant upside potential, with year-to-date gains ranging from 20% to 107%, as earnings reports are about to be released: $Keppel(BN4.SI)$/$SEMBCORP INDUSTRIES LTD(U96.SI)$/$Thakral(AWI.SI)$.
| Market recap
On Tuesday, U.S. stock markets fell across the board, with all three major indices recording varying degrees of losses, including a 0.38% drop in $NASDAQ(.IXIC)$ and a 0.3% decline in $S&P 500(.SPX)$. The technology sector led the market downturn.
The overall market exhibited a trend of opening high and closing low, initially boosted by positive signals from U.S.-China trade talks, but later retreating due to uncertainties surrounding the Federal Reserve's upcoming meeting. Trading volume slightly increased compared to the previous day, indicating growing market divergence. $Cboe Volatility Index(VIX)$ rose, reflecting heightened investor risk aversion.
Regarding the U.S. economy, consumer confidence rose in July, with improved expectations for the next six months. Job openings fell in June, and there is an increasing trend of upper-income Americans defaulting on loans.
Megacaps - Capex Narrative
$Alphabet(GOOG)$ rose by 1.65%, with a month-to-date increase of 10.7%, leading the Magnificent 7 on Tuesday.
Last week, Alphabet reported its earnings, raising its capital expenditure forecast for the year from an initial target of $75 billion to $85 billion. This increasing capital expenditure trend resonates across various tech sectors; based on Google's Q2 cloud performance and capex guidance for 2025 and 2026, current AI models are already contributing positively to cloud vendors' performances, while cloud providers continue to ramp up capital spending on computing infrastructure.
US-China Trade Talks
Progress was made during U.S.-China trade talks in Sweden, briefly boosting the market. Both sides are considering extending negotiations beyond the August deadline. The original 90-day truce established in May paused tariff escalations. U.S. Treasury Secretary Scott Bessent and Chinese negotiator Li Chenggang confirmed mutual interest in maintaining the truce, although tensions linger, particularly concerning rare earth minerals and advanced chips.
Top movers
Brave out the bad weather:
Global AI infrastructure provider $Celestica(CLS)$, engineering equipment manufacturer $Chart(GTLS)$ , and Dutch oil and gas services provider $Expro Group Holdings N.V.(XPRO)$ rose by 16.5%, 15.8%, and 32.1%, respectively, all attributed to exceeding market expectations in their Q2 earnings and providing optimistic guidance for the year.
Jay Chou x Robots:
On the morning of July 30, $STARPLUS LEGEND(06683)$ announced that its subsidiary, Chinese robotics star Unitree Robotics, will collaborate to launch a quadrupedal robotic dog or robot with companionship and social attributes.
| Dividend Plays
Local SGX-listed stocks remain popular due to their stability and dividends, showcasing impressive year-to-date changes: $Keppel(BN4.SI)$/$SEMBCORP INDUSTRIES LTD(U96.SI)$/$Thakral(AWI.SI)$.
BN4 - Scheduled to report quarterly earnings on July 31
Headquartered in Singapore, $Keppel(BN4.SI)$ is a global asset management and operations company with strong capabilities in sustainable solutions across infrastructure, urban development, and connectivity, providing essential infrastructure and services for renewable energy, clean energy, decarbonization, sustainable urban renewal, and digital connectivity across over 20 countries.
For the 2024 fiscal year, Keppel reported basic earnings per share of SGD 0.52, a decrease of 77.33% year-on-year (due to a high base last year); net asset value per share increased to SGD 6.06, a year-on-year rise of 7.07%; and net cash flow per share reached SGD 0.11, an increase of 251.71% year-on-year.
On July 15, Keppel collaborated with the Asian Infrastructure Investment Bank to deploy up to $1.5 billion for sustainable infrastructure investments in the Asia-Pacific region, exploring projects in electricity transmission, renewable energy, digital infrastructure, transportation, and urban services.
U96 - Scheduled to report quarterly earnings on August 8
Headquartered in Singapore, $SEMBCORP INDUSTRIES LTD(U96.SI)$ is a comprehensive energy and utility group under Temasek, primarily engaged in electricity, water, and industrial park development with projects across 11 countries.
Sembcorp's financial performance for 2024 was strong, driving stock price increases. Basic earnings per share reached SGD 0.57, a year-on-year increase of 7.36%; net asset value per share was SGD 3.01, a year-on-year increase of 16.67%.
On July 28, global data center pioneer DayOne held a groundbreaking ceremony for its first data center in Singapore and signed a strategic cooperation agreement with Sembcorp to support the development of Singapore's AI ecosystem. This 20-megawatt (MW) facility will have a total floor area of approximately 40,000 square meters, with the first phase scheduled to be operational in 2026. DayOne signed a power purchase agreement (PPA) with Sembcorp's wholly-owned subsidiary to supply the necessary power for the data center, which is a core value segment for global data centers.
AWI - Scheduled to report quarterly earnings on August 13
$Thakral(AWI.SI)$ is an investment holding company operating in the Investments, Lifestyle, and Other segments, with the majority of revenues derived from the Lifestyle segment.
In 2024, Thakral's revenue reached SGD 288.8 million, a 36% increase from FY 2023, and net income was SGD 28.8 million, up 252% from FY 2023.
The company has been listed on the Singapore Exchange since 1995 and currently has two core divisions: Investments and Lifestyle Products. In terms of investment, the company invests directly or in partnership in real estate projects, including retirement living resorts and properties in Australia, as well as office buildings and business hotels in Japan. In the Lifestyle Products segment, Thakral Corporation sells and distributes beauty and wellness products in mainland China, Hong Kong, Southeast Asia, and India.
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