UOB Kay Hian Private Limited
Date of Report: 8 September 2025

Singapore Dividend Stocks Shine as Bond Yields Fall: Top Yield Plays and Market Outlook for 2025

Executive Summary: Income Equities Take the Spotlight in Singapore’s 2025 Market

Singapore’s stock market is entering a compelling phase for income investors. As Singapore government bond yields trend lower, the appeal of high-yielding equities with robust fundamentals and sustainable dividends is growing. With the yield gap between equities and fixed income narrowing, investors are being drawn toward quality stocks offering yields in the 4-6% range—well above the 10-year Singapore Government Bond yield of 1.8579% as of early September 2025. This report by UOB Kay Hian identifies the leading dividend plays and provides an in-depth analysis of the Singapore equity landscape for the remainder of 2025.

Why High-Yield Equities Outshine Bonds in 2025

The narrowing yield differential between equities and bonds is tilting the risk-reward balance in favor of income equities.
Dividend-paying stocks not only offer attractive income but also potential for capital appreciation, unlike static bond coupons.
Companies with payout ratios below 70% and low gearing (net debt to equity around 20% or less) are best positioned to sustain dividends, even through economic volatility.
Dividends from these companies tend to rise with earnings, providing a quasi-inflation hedge.

Screening Methodology: Identifying the Best Yield Plays

UOB Kay Hian screened for non-bank, non-REIT Singapore-listed companies with:
Dividend yields above 4%
A positive compound annual growth rate (CAGR) for dividends per share (DPS) over 2022-2025F
Gearing of 20% or less
This produced a list of the 10 most attractive yield stocks, which are analyzed in detail below.

Market Valuation and Outlook: STI Target and Upside Potential

The end-2025 Straits Times Index (STI) target is set at 4,602, implying about 7% upside from current levels.
The STI would trade at a forward PE of 13.4x, considered reasonable for a market dominated by quality defensive names.
With a 10% premium to the PE multiple, the STI could trade as high as 4,877.
The STI currently offers a 5.2% yield, 18% above the regional median, and trades at discounts of 12% (PE) and 7% (P/B) to long-term averages despite a year-to-date (YTD) total return of 16.5%.

Macro Backdrop: US Rate Cuts and Singapore’s Interest Rate Environment

Expectations for US Federal Reserve rate cuts have risen following dovish signals from Chair Jerome Powell.
US job openings have dropped, and payroll growth is anemic, pointing to a potential rise in US unemployment.
In Singapore, however, local interest rates have declined even faster than US rates. Two-year fixed mortgage rates are at 1.65%, and the Singapore Overnight Rate Average is at 1.41%.
This context makes dividend yields of 4%+ from equities very appealing for local investors.

Key Recommendations: Top Stocks to Watch

Below is a responsive and styled table highlighting UOB Kay Hian’s key stock picks, their target prices, and upside potential:

Deep Dive: Top 10 High-Yield Non-Bank, Non-REIT Stocks

The following table summarizes the key metrics for the top 10 high-yielding, sustainable dividend stocks identified by UOB Kay Hian:

Company-by-Company Analysis: Key Details for Investors

BRC Asia (BRC SP)

– Recommendation: HOLD – Price: S\$4.25 | Target: S\$4.69 – 2025F PE: 13.4x | Dividend Yield: 4.7% – ROE: 17.8% | DPS CAGR: 20% | Net Debt/Equity: 19.7% – Market Cap: S\$1,166m – Highlights: Strong cash flow, moderate gearing, high yield and impressive dividend growth.

Bumitama Agri (BAL SP)

– Recommendation: HOLD – Price: S\$1.15 | Target: S\$0.90 – 2025F PE: 11.3x | Dividend Yield: 5.3% – ROE: 14.9% | DPS CAGR: 11% | Net Debt/Equity: 10.5% – Market Cap: S\$1,994m – Highlights: Attractive yield, robust balance sheet and healthy payout ratio.

China Sunsine (CSSC SP)

– Recommendation: BUY – Price: S\$0.76 | Target: S\$0.75 – 2025F PE: 9.2x | Dividend Yield: 4.7% – ROE: 9.9% | DPS CAGR: 135% | Net Debt/Equity: -51.9% – Market Cap: S\$725m – Highlights: Net cash position, solid earnings and very strong dividend growth.

Civmec (CIVMEC SP)

– Recommendation: HOLD – Price: S\$0.99 | Target: S\$0.80 – 2025F PE: 13.9x | Dividend Yield: 5.2% – ROE: 8.4% | DPS CAGR: 45% | Net Debt/Equity: 4.6% – Market Cap: S\$503m – Highlights: Yield supported by recurring cash flows and low gearing.

ComfortDelGro (CD SP)

– Recommendation: BUY – Price: S\$1.47 | Target: S\$1.70 – 2025F PE: 15.0x | Dividend Yield: 5.6% – ROE: 8.1% | DPS CAGR: 26% | Net Debt/Equity: 21.9% – Market Cap: S\$3,185m – Highlights: Stable transport operator with improving dividend profile.

DFI Retail Group (DFI SP, USD)

– Recommendation: BUY – Price: US\$3.32 | Target: US\$4.30 – 2025F PE: 17.9x | Dividend Yield: 17.5% – ROE: 40.2% | DPS CAGR: 165% | Net Debt/Equity: -70.3% – Market Cap: S\$5,783m – Highlights: Exceptionally high yield, strong dividend growth and net cash.

Genting Singapore (GENS SP)

– Recommendation: BUY – Price: S\$0.765 | Target: S\$0.890 – 2025F PE: 17.6x | Dividend Yield: 5.4% – ROE: 6.3% | DPS CAGR: 27% | Net Debt/Equity: -40.0% – Market Cap: S\$9,246m – Highlights: Defensive gaming stock with consistent dividends and net cash.

Valuetronics (VALUE SP)

– Recommendation: BUY – Price: S\$0.77 | Target: S\$0.83 – 2025F PE: 10.7x | Dividend Yield: 6.1% – ROE: 11.8% | DPS CAGR: 17% | Net Debt/Equity: -75.2% – Market Cap: S\$315m – Highlights: Strong cash position, high yield and improving dividend profile.

Venture Corporation (VMS SP)

– Recommendation: BUY – Price: S\$13.58 | Target: S\$14.35 – 2025F PE: 17.3x | Dividend Yield: 5.7% – ROE: 7.8% | DPS CAGR: 1% | Net Debt/Equity: -45.8% – Market Cap: S\$3,907m – Highlights: Technology solutions provider with stable dividends and net cash.

Winking Studios (WKS SP)

– Recommendation: BUY – Price: S\$0.265 | Target: S\$0.380 – 2025F PE: 16.0x | Dividend Yield: 4.1% – ROE: 10.7% | DPS CAGR: NM (no dividend in 2022) | Net Debt/Equity: -48.5% – Market Cap: S\$117m – Highlights: Attractive yield, improving profitability, net cash.

Sector Analysis: Valuation and Performance Snapshots

The report also provides a comprehensive comparison of major Singapore-listed companies across aviation, finance, healthcare, land transport, plantation, property, shipyard, technology, telecoms, and REITs. Key metrics include PE ratios, dividend yields, ROE, and price-to-NAV.

Conclusion: Why Singapore Income Equities Stand Out in 2025

The Singapore market offers high-quality, defensively positioned stocks delivering stable and growing dividends.
With bond yields at multi-year lows and local interest rates falling, the risk-reward profile for equity income has rarely looked better.
A focus on companies with strong cash flow, low gearing, and a proven track record of increasing dividends is recommended.
The STI remains attractively valued, with further upside potential and yields well above regional peers.
Singapore’s high-yield equities are set to attract strong investor interest as the hunt for sustainable income continues in a low-rate world. Investors seeking both income stability and capital gain opportunities should pay close attention to the names highlighted in this report.