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3 Companies Paying Dividends This Week

Sudhan P.

There are a few companies going ex-dividend in the next few days. In other words, you need to own them before a particular date in order to receive their dividends. Let’s take a look at three of them.

Wednesday, 18 April 2018

On Wednesday, M1 Ltd (SGX: B2F), one of the three major telcos operating in Singapore, will be going ex-dividend.

It is dishing out 6.2 Singapore cents per share for the fourth quarter.

For the full year ended 31 December 2017, M1’s revenue rose 1% year-on-year to S$1.07 billion. M1 has four business segments – mobile services, fixed services, international services, and handset sales (the first three segments are together known as service revenue). The firm said in its results announcement that “service revenue continued its quarterly growth trend to close the year at S$828.1 million, 2.8% higher year-on-year”. Despite the top-line growth, net profit fell 11.5% to S$132.5 million.

M1’s shares ended Monday at S$1.79, translating to a trailing price-to-earnings (PE) ratio of around 13 and a dividend yield of 6.4%.

Thursday, 19 April 2018

United Overseas Insurance Limited (SGX: U13), or UOI, is pencilled in to go ex-dividend on Thursday. The firm is one of Singapore’s leading local general insurance companies.

UOI is giving out a total of 19.0 Singapore cents per share for the fourth quarter, of which 5.0 Singapore cents is a special dividend.

For the twelve months ended 31 December 2017, gross premiums written decreased 3% year-on-year to S$103.7 million. The fall was on the back of UOI’s “portfolio pruning and more selective risk acceptance”. However, underwriting profit went up 2.9% to S$25.3 million mainly due to lower net claims incurred.

Looking ahead, the firm said:

“Despite improving economic outlook locally and regionally, the general insurance market is not expected to benefit to any extent in light of continued intense competition resulting from unabated growth in worldwide market capacity. Premium rates are likely to continue its slide as to render it difficult to underwrite profitably in many lines of business. Digitised online service will increasingly become an essential part of insurance operations. It will add to the business cost but may not contribute substantially to non-life business growth initially.

On the investment front, the operating environment may become more conducive. However, many uncertainties remain globally, particularly in the area of geopolitics. Prudence will continue to be the best policy.”

On Monday, UOI closed at S$7.68, giving a price-to-book ratio of 1.2 and a dividend yield of 2.2%, excluding the special dividend.

Friday, 20 April 2018

On Friday, Lee Metal Group Ltd (SGX: 593) will be going ex-dividend. The firm is a distributor and fabricator of steel products.

Lee Metal is paying 1.0 Singapore cent per share for the fourth quarter.

Revenue for the twelve months ended 31 December 2017 rose 6.4% year-on-year to S$339 million due to higher turnover at the fabrication and manufacturing business, partially offset by the winding down of the steel merchandising business in December 2016. Net profit, however, plunged 43.6% to S$7.5 million.

Lee Metal closed at S$0.415 on Monday, giving a PE ratio of 27 and a dividend yield of 4.8%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of United Overseas Insurance Limited. Motley Fool Singapore contributor Sudhan P doesn't own shares in any companies mentioned.