Yahoo Finance 4 Reliable Dividend Stocks I Will Buy if I Had S$40,000
It should be great news for many of you as the New Year arrives.
Yes, I am talking about the declaration of year-end bonuses and the receipt of annual wage supplements.
Armed with this extra cash, you can go shopping for solid, dividend-paying stocks to boost your passive income.
We introduce four dependable dividend-paying stocks that you can consider for your buy watchlist.
If I had an extra S$40,000 to spare, I would allocate this amount equally to these four dividend stocks.
Haw Par Corporation Ltd (SGX: H02)
Haw Par Corporation is a conglomerate with four key divisions – Healthcare, represented by the famous Tiger Balm brand, Leisure, Investments, and Property.
The group has been a consistent payer of dividends over the years.
Haw Par paid out an annual dividend of S$0.20 per share from 2010 to 2017.
In 2018, the group paid a special dividend of S$0.85 and raised its regular dividend to S$0.30 to celebrate its 50th Anniversary.
The healthcare group has maintained this S$0.30 annual dividend through the pandemic year of 2020 through 2022.
For the first half of 2023 (1H 2023), Haw Par reported a strong recovery in its business with revenue rising 16.3% year on year to S$111.1 million.
Net profit for 1H 2023 climbed nearly 35% year on year to S$104.1 million.
Haw Par raised its interim dividend from S$0.15 to S$0.20, bringing its annualised dividend to S$0.40.
Looking ahead, the group should maintain this dividend as the business generates consistent positive free cash flow.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is an engineering group with four divisions – energy engineering, real estate, geospatial, and healthcare.
The group has a track record of paying out annual dividends since fiscal 2003 (Boustead has a 31 March fiscal year end)
Since fiscal 2018 (FY2018), BSL has paid out an annual dividend of S$0.03 per share and maintained this for FY2019 and FY2020.
In FY2021, the engineering group raised its regular dividend to S$0.04 while paying out a special dividend of S$0.04 because of the spin-off of a private investment fund by its subsidiary, Boustead Projects Limited.
Subsequently, FY2022 and FY2023 saw the group maintain its S$0.04 per year dividend.
For the first half of fiscal 2024 (1H FY2024) ending 30 September 2023, BSL saw revenue shoot up 49% year on year to S$367.9 million.
Net profit (adjusted for one-off items) soared 89% year on year to S$25.8 million.
The engineering group maintained its S$0.015 interim dividend on the back of healthy positive free cash flow.
CSE Global Ltd (SGX: 544)
CSE Global is a systems integrator providing automation, communications, and electrification solutions spanning various industries.
The group has a presence across 16 countries with close to 2,000 employees globally.
The engineering firm has paid out a consistent annual dividend of S$0.0275 for the past five years from 2018 to 2022.
This consistency can be attributed to CSE Global’s track record in snagging new orders and its smooth delivery of contracts to its clients.
For the first nine months of 2023 (9M 2023), the group saw revenue jump 32.6% year on year to S$534.7 million.
Its order book stood at S$638 million as of 30 September 2023, up 55% year on year.
CSE Global maintained its interim dividend of S$0.0125 for 1H 2023 with net profit more than doubling year on year to S$11 million.
Civmec Ltd (SGX: P9D)
Civmec is an integrated construction and engineering services provider to the Energy, Resources, Infrastructure, and Marine & Defence sectors.
Its capabilities include heavy engineering, shipbuilding, site civil works, and maintenance, among others.
The engineering firm has been steadily raising its annual dividend over the past few years.
In FY2020 (Civmec has a 30 June year-end), the total dividend was A$0.01 per share.
This dividend was maintained in FY2021 but FY2022 saw the dividend tripled to A$0.03 per share.
For FY2023, Civmec’s annual dividend jumped to A$0.05 per share.
This steady increase in dividends showcases the engineering firm’s commitment to increasing its dividend payout in line with its earnings.
The engineering group delivered a solid set of earnings for FY2023.
Revenue inched up 2.7% year on year to A$830.9 million while net profit increased by 13.7% year on year to S$57.7 million.
Its order book also grew by 10.6% year on year to A$1.1 billion.
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Disclosure: Royston Yang owns shares of Boustead Singapore Limited.
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