Three Shares With Double Digit Dividend Yields

Money tree 2Dividends are often treated as a precious source of income for investors and are an important component of long-term stock market returns. Everyone loves a high yielding dividend stock. Let’s take a look at three of them.

Challenger Technologies Limited (SGX: 573)

IT gadgets such as printers and earphones have become part and parcel of our daily lives. Challenger is the largest IT products and service provider in the country. Established in 1984, the company has retail stores in shopping malls islandwide. Listed in year 2004, its first ever dividend declared was 0.7 cents and grown 335% to 2.35 cents based on FY2013. If you have purchased it at the IPO price of S$0.23, you would have received 10.21% dividend yield last year.

Silverlake Axis Limited (SGX: 5CP)

Silverlake Axis Limited is a leading provider of customized software solutions to major financial institutions since 1989. Its integrated banking solutions are implemented at over 100 customer sites across Asia. Listed in year 2003, its first ever dividend declared was 0.55 cents and has skyrocketed 618% to 3.4 cents based on FY2013 results. Based on the offer price of S$0.31, you would have received 10.97% dividend yield from the previous year.

Sarin Technologies Limited (SGX: U77)

Sarine Technologies Ltd. develops, manufactures, and sells planning, evaluation, and measurement systems for diamond grading and gemstone production. Listed in year 2005, its first ever dividend declared was USD 2 cents and has grown steadily to USD 5.25 cents in year 2013, up 262.5%. Based on the offer price of S$0.355, you would have received 18.48% dividend yield based on the conservative assumption that 1 USD is equivalent to 1.25 SGD.