3 SGX High Yield Small Cap Dividend Stocks to Watch

Looking for SGX high yield small cap dividend stocks that offer strong passive income potential without relying only on large-cap blue chips or REITs? In Singapore, most dividend investors immediately turn to banks, REITs or government-linked companies for stability, but there are smaller gems that may offer attractive yields while still operating solid business models. In this article, we explore three listed small-cap stocks on the Singapore Exchange (SGX) — Medinex, Tye Soon and Choo Chiang — which have delivered dividend yields around the mid-single to high-single-digit range based on their recent dividend history. While small-caps naturally carry more volatility and liquidity risks, they can also offer growth runway and capital appreciation potential for patient long-term investors.

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Why Consider Small-Cap Dividend Stocks?

• Potentially higher yields compared to well-known blue-chip counters.
• Business growth runway may still be in early phases.
• Attractive valuation opportunities due to low analyst coverage.
• Dividend sustainability varies by cash flow management and business stability.

However, investors must be aware of thin trading volume, higher sensitivity to financial performance shifts and limited institutional investment participation.

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1. Medinex (SGX: OTX)

Sector: Healthcare Support Services Medinex provides business support services to clinics and healthcare-related businesses, including compliance, accounting, HR and medical supplies. The healthcare industry tends to be resilient, giving Medinex a recurring-revenue advantage. For the past 3 years, Medinex dividend has been very consistent. The company give 1.68 cents a year which translate to a dividend yield of 7% as can be seen from the table below  

Key Positives

• Exposure to a defensive sector with recurring service demand.
• Fee-based business model with scalability potential.
• Dividend-paying track record since listing.

Potential Risks

• Small-cap liquidity and limited public awareness.
• Dependent on healthcare client expansion and retention.

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2. Tye Soon (SGX: BFU)

Sector: Automotive Parts & Distribution Tye Soon has a long operating history in the region, supplying automotive, bicycle and industrial spare parts. Demand for replacement parts tends to remain steady regardless of market cycles, making it a potentially stable dividend candidate. For FY 2024, the company declared an has already given a total of 1.913 cents per share which translate to a dividend yield of 6.1%

Key Positives

• Long-standing operating history across Asia.
• Dividend policies that reward shareholders consistently.
• Products cater to necessity-driven replacement cycles.

Potential Risks

• Margins sensitive to logistics and supply chain costs.
• Competitive distribution landscape.

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3. Choo Chiang (SGX: 42E)

Sector: Electrical Product Distribution & Retail Choo Chiang is a familiar brand among contractors, builders and electrical professionals. Its strong domestic presence and niche retail chain support steady operational performance, contributing to its dividend-paying profile. For FY 2024, the company dish out 2.9 cents including special dividend of 0.3 cents which translate to a dividend yield of 6.4%.

Key Positives

• Established brand presence in Singapore.
• Healthy balance sheet and recurring replacement demand.
• Track record of distributing earnings back to shareholders.

Potential Risks

• Local market concentration limits expansion scale.
• Competition from wholesale and digital procurement channels.

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Comparison Snapshot

Company	Sector	Dividend Profile	Investor Type
Medinex	Healthcare Support	Consistent, yield historically above market average	Defensive income investors
Tye Soon	Automotive Distribution	Stable, long-term payer	Steady income and value seekers
Choo Chiang	Electrical Products	Track record with potential for gradual growth	Yield + stability investors

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Who Should Consider These Stocks?

• Dividend investors focused on income rather than rapid growth.
• Those comfortable with holding long-term positions.
• Investors seeking diversification beyond REITs and banks.
• Investors who perform their own due diligence.

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Final Thoughts

These SGX high yield small cap dividend stocks offer attractive yield profiles and operate in practical, necessity-driven industries. While they are not substitutes for core blue-chip holdings, they may play a meaningful role as satellite positions in a diversified income portfolio. If you found this analysis useful, bookmark this page, share it, and follow us for more high-yield dividend insights tailored to Singapore investors!  For more investing ideas and insights or open a trading account, you connect with me via telegram here Disclaimer: Please note that the stocks mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these stocks