$Soup Holdings(5KI.SI)$ Is Soup Holding a good dividend play?

📌 Current Dividend Situation

   •   Dividend yield is very low (~0.6%) — roughly 0.6–0.67% based on recent payouts and current share price. That’s [OMG]  well below [OMG]  typical dividend stocks and below average yields on the SGX. 

   •   The company pays dividends once a year and recently [Spurting]  significantly reduced [Spurting]  its dividend amount compared with past levels. 

   •   [Weak]  Dividend payments are not strongly supported by earnings, and dividend growth historically has been negative on average. That means dividends haven’t been reliably increasing. [Weak]  

🧾 Profitability & Financial Health

   •   The company [Heartbreak]  recently reported net losses[Heartbreak]  (e.g., a loss in FY2024), with negative earnings per share. 

   •   Profitability metrics like return on equity (ROE) and profit margin are negative, indicating it [Put]  isn’t generating strong profits [Put]  relative to its capital. 

   •   Dividend coverage (ability to pay dividends from earnings) appears weak — a risk for future dividend sustainability. 

📊 Company Profile & Market Context

   •   Soup Holdings is in the restaurant/consumer services sector, which can be cyclical and sensitive to consumer spending. 

   •   Its market cap is small (around S$20M) and the stock has limited liquidity. Small companies often have less predictable dividend policies. 

   •   Compared with the broader SGX market, its yield is near the bottom quartile for dividend payers; many other SGX stocks offer higher yields. 

🧠 What That Means for Dividend Investors

Generally, a good dividend play has:

   •   A higher dividend yield relative to peers or the market.[Strong]  

   •   Consistent earnings that support dividend payouts.[Strong]  

   •   Stable or growing dividends over time.[Strong]  

Soup Holdings doesn’t strongly meet these criteria right now:

✔️ It does pay dividends[Eye]  

❌ Dividend yield is low[Doubt]  

❌ Earnings are weak or negative[Blush]  

❌ Dividend history shows cuts and little growth[Observation]  

❌ Dividend coverage is questionable[Sick]  

📍 So Is It a Good Dividend Play?

😵Not really for income-focused investors.😵

If your main goal is steady dividend income, there are many other SGX stocks with stronger yields, more reliable earnings, and better dividend history.

However:

   •   If you like the company’s business or see turnaround potential, you might consider it as a speculative small-cap investment, ☠️not primarily a dividend stock.☠️