SGX-listed Wilmar International Limited (SG:F34) carries a dividend yield of 4.67%, above the sector average of 2.13%. Wilmar International operates as an agribusiness company involved in the processing, trading, and distribution of a wide range of products like edible oils, sugar, flour, rice, etc.
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In addition, the stock is also expected to offer capital appreciation and is rated a Moderate Buy rating by analysts, as discussed below. Wilmar’s share price experienced a loss of around 13% in 2023.
TipRanks offers a comprehensive set of tools designed to help users identify dividend stocks within different markets. In this case, we have used TipRanks’ Top Singapore Dividend Stocks to pick and discuss Wilmar’s dividend prospects. The tool simplifies stock selection, enabling users to efficiently identify dividend investments that match their criteria.
Wilmar International’s Dividend History
For FY23, Wilmar International paid an interim dividend of S$0.060 per share, similar to the interim payment in the previous year. Nonetheless, the company has managed to consistently increase its yearly dividends over the years. Its dividends have grown from S$0.050 in 2012 to S$0.170 in 2022.
Despite a dull performance in the first nine months of 2023, the company kept its dividend unchanged from the last year. The company posted over a 50% decline in its net profit in the first half and Q3 2023, hit by reduced consumer demand. The company’s performance was impacted by a rise in outside dining following the relaxation of COVID-induced lockdown restrictions in China and a deceleration in economic conditions.
Looking ahead, analysts expect weak demand in China to weigh on the company’s earnings over the near term. However, optimism about the company’s long-term growth potential remains high, considering the strength of its integrated food products platform and downstream division. Furthermore, the company expects the second half of Fiscal 2023 to be robust, aligning with seasonal patterns.
What is the Target Price for Wilmar?
The Wilmar share price target is S$3.95, which reflects a growth of 10.6% from the current trading level. As per TipRanks, F34 stock has received two Buy and two Hold recommendations for a Moderate Buy consensus rating.
