Shares of Bumitama Agri (P8Z.SI) surged 5% in early trading on Wednesday, as investors flocked to the palm oil producer known for its attractive dividend yield and recent strong financial performance. The company, which operates in Indonesia, has caught the attention of dividend-seeking investors in a market characterized by mixed economic signals across Asia.

Bumitama Agri boasts a compelling dividend yield of 5.3%, placing it among the top dividend payers in Singapore. The company's dividends are well-supported by both earnings and cash flows, with payout ratios of 70.8% and 52%, respectively. This financial stability, combined with a decade-long trend of increasing dividend payments, has made the stock an attractive option for income-focused investors.

Adding to the positive sentiment, Bumitama Agri recently reported robust earnings growth. The company's net income rose to IDR 1.27 trillion from IDR 856.79 billion year-over-year, reflecting strong operational performance in its plantations and palm oil mills segment. With the stock currently trading significantly below its estimated fair value, investors appear to be capitalizing on the opportunity to gain exposure to a high-yielding stock with solid growth prospects in the palm oil industry.