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The earnings season has almost ended this round as May draws to a close.
Many companies have reported weaker financial numbers as they grapple with the twin challenges of high inflation and surging interest rates.
As profits dipped, some have also reduced their dividends in tandem.
During tough times, it’s good to lean on reliable blue-chip stocks that have weathered many a storm.
This round, several blue-chip stocks also managed to defy the odds and post an increase in their dividend payments.
We highlight three of these companies and assess if they can continue to raise their dividend payments moving forward.
Singtel (SGX: Z74)
Singtel is no stranger to most, being Singapore’s largest telecommunication company (telco).
The group recently reported a commendable set of earnings for its fiscal 2023 (FY2023) ending 31 March 2023.
Underlying revenue inched up 1.9% year on year while underlying net profit (excluding exceptional items) rose 6.8% year on year to S$2.1 billion.
The telco declared a final dividend of S$0.053 for FY2023, higher than the prior year’s S$0.048.
Looking ahead, Singtel should continue to benefit from the reopening of economies and resumption of air travel.
The group’s roaming revenue will receive a boost from the higher number of travellers but management did warn that the strong Singapore dollar may act as a headwind for FY2024.
Singtel will also carry on its capital recycling efforts to unlock more value for shareholders, just as FY2023 saw an additional S$0.05 in dividends being paid out from the group’s capital recycling initiatives.
Should these initiatives bear fruit in the future, investors could be looking at more special payouts.
Singtel also intends to improve margins for its core business and scale up growth areas such as NCS and its regional data centre business.
There is a good chance that FY2024 could see better financial numbers as the business shakes off its pandemic blues and welcomes a surge in volume from customers who are eager to explore the world again.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a portfolio of 185 properties spread across eight countries.
The REIT’s total assets under management stood at S$12.8 billion as of 31 March 2023.
For FY2023, MLT reported a 7.7% year on year increase in revenue to S$730.6 million while net property income rose 7.2% year on year to S$634.8 million.
MLT’s distribution per unit (DPU) inched up 2.5% year on year to S$0.09011.
The logistics REIT has a history of relying on acquisitions to boost its DPU.
Just last month, the REIT manager announced a series of acquisitions totalling S$904.4 million to purchase eight properties in Japan, Australia, and South Korea.