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3 High Yielding Stocks You Might Not Have Heard Of

yield up In today’s low interest rate environment, the interest rates that the Singapore banks offer for a savings account is about 0.25% annually. Because this interest rate is much lower than what is required to beat inflation rate of about 4%, it becomes important to invest to prevent a depletion of wealth.

Some investors  choose to invest in REITs or Real Estate Investment Trusts as REITs tend to offer attractive dividend payouts and are generally perceived as stable due to the fact that it owns tangible assets – property. My colleague, Ser Jing had mentioned previously that rising interest rates have resulted in the price of REITs falling like a pack of cards. They fell almost 20% in a short amount of time. For investors who are not interested in investing in REITs, they can consider investing in stable income stocks. Let’s look at three little-known stocks that have provided high yields.

#1 Nera Telecommunications Limited (SGX: N01)

Nera Telecommunications (Neratel) is a premier solutions provider spanning satellite communications, microwave radio transmission, and networking infrastructure. You might have noticed the “Nera” brand flashing in the payment terminal display (where you sign your signature) whenever you make a credit card purchase.

Neratel has been consistently paying out dividends since year 2003 and the CEO of Neratel is confident that they will pay out a dividend of at least 4 cents annually going forward. At the latest closing price of $0.83, a 4 cents dividend translates to a dividend yield of 4.8%, despite the stock having jumped so rapidly recently.

#2 800 Super Holdings (SGX: 5TG)

800 Super is Singapore’s largest private waste disposal company and their services include waste disposal, cleaning and conservancy, and landscape services. This company keeps Singapore clean and green. It is easy to spot them – their logos can be found in the green rubbish bins or on the refuse collection lorries.

All these services they provide are on a recurring basis, signifying a stable stream of dividends can be expected. At the current price of $0.195, it offers a 5.13% dividend yield.

#3 Venture Corporation Limited (SGX: V03)

Venture Corporation is a leading global provider of technology services, products and solutions. Venture Corp designs and develops electronic and mechanical solutions for manufacturers and supply chains.

Its expertise includes the design of printing and imaging equipment, handheld scanners and testing and measurement devices. Although its revenue has been rather flat during these years, the dividend payouts face no problem with its huge array of diversified operations. It spots a 6.94% dividend yield with the closing price at $7.20.

Foolish Bottom-line

To sum it up, high yield stocks with good fundamentals can turn out to be hidden gems. An early investment can reap you both potential capital gains and increasing dividends as the company grows its cash hoard.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.   Motley Fool Singapore contributor James Yeo doesn’t own shares in any companies mentioned.