DFI Retail Group could offer a special dividend of at least around $0.04 per share this year, after divesting its Singapore grocery business for a cash consideration of around $94 million, CGS International analysts write in a note.

The potential special dividend is based on a 60% payout of the proceeds, and would imply a 2025 dividend yield of around 6.6%, they say.

The Asian retailer is expected to have around $230 million of annual cost savings from the divestment, which is scheduled to be completed in 2H, they say.

CGS International maintains its add rating and target price of $2.71 on the stock, which is up 1.3% at $2.37.