4 Singapore Stocks Signalling Higher Dividends for 2022

·5-min read
Network Cable (Close Up)
Network Cable (Close Up)

It’s always a good feeling when dividends make their way into your bank account.

As investors, we should constantly be on the lookout for strong, study companies that pay out consistent dividends.

The news gets even better if the dividends rise over time, allowing you to enjoy higher levels of passive income.

And if you take these dividends and reinvest them in the same companies that paid them out, you can slowly grow your wealth through compounding.

Increasing your flow of dividend income can also better prepare you for retirement.

Here are four Singapore stocks that raised their dividends recently, and are signalling higher payouts for the rest of this year.

NetLink NBN Trust (SGX: CJLU)

NetLink NBN Trust designs, builds, owns and operates Singapore’s Next-Generation Nationwide Broadband Network (NBN) with coverage to both residential and non-residential premises on the island.

For the fiscal year 2022 (FY2022) ended 31 March 2022, the group’s revenue inched up 2.5% year on year to S$377.6 million.

Net profit, however, dipped by 3.7% year on year to S$91.3 million due to an accounting adjustment arising from a reduction in rental rates on renewal of Central Office lease agreements with the lessee that had no cash flow impact.

Distribution per unit (DPU) rose 1% year on year to S$0.0513 for FY2022, translating to a historical yield of 5.2%.

The number of connections managed by NetLink NBN Trust has been increasing — from 1,447,000 to 1,464,000 year on year for residential connections and 48,100 to 50,300 for non-residential connections.

Non-building address points saw a surge in connections from 1,996 in FY2021 to 2,404 in FY2022.

NetLink NBN Trust plans to expand its network into new residential dwellings, thereby improving revenue and distributable income in the future.

Singapore Post Limited (SGX: S08)

Singapore Post, or SingPost, is Singapore’s sole postal service provider.

The group also provides e-commerce logistics services with operations in 19 markets around the world.

SingPost reported a strong financial performance for FY2022, with revenue up 18.6% year on year to S$1.67 billion.

Operating profit jumped by 41.3% year on year to S$112.1 million and underlying net profit climbed 35.2% year on year to S$81.3 million.

The better performance can be attributed to SingPost’s acquisition of a major stake in Freight Management Holdings as well as the growth in freight forwarding and delivery volumes for its Logistics division.

The final proposed dividend stood at S$0.013, more than double the S$0.006 paid out last year.

SingPost’s property business is expected to remain resilient, while more border reopenings should increase international air freight, supporting a recovery in the group’s international business.

As business volumes grow, there’s also a higher chance for SingPost to continue increasing its dividends for FY2023.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban retail malls and an office building, with total assets under management (AUM) of S$6.1 billion.

The retail portfolio has almost 2.2 million square feet of net lettable area.

The REIT reported a respectable set of earnings for its fiscal 2022’s first half (1H2022) ended 31 March 2022.

Gross revenue inched up 1.5% year on year to S$176.2 million while net property income (NPI) increased by 3.8% year on year to S$130.5 million.

DPU edged up 2.3% year on year to S$0.06136, and units of FCT offered a trailing 12-month distribution yield of 5.2%.

FCT’s portfolio occupancy remained healthy at 97.8% and the gearing level stood at 33.3%, allowing for more debt headroom to support yield-accretive acquisitions.

With year-to-date tenant sales outperforming pre-COVID levels, there’s room for higher DPU for the REIT come FY2022.

Mapletree Logistics Trust (SGX: M44U)

Mapletree Logistics Trust, or MLT, is a logistics-focused REIT with a portfolio of 183 properties spread across eight countries with an AUM of S$13.1 billion as of 31 March 2022.

The REIT announced a strong set of earnings for FY2022, with gross revenue rising 20.9% year on year to S$678.5 million.

NPI increased by 18.6% year on year to S$592.1 million while DPU rose 5.5% year on year to S$0.08787.

Units of MLT provide a trailing distribution yield of 5.5%.

The REIT’s growth was driven mainly by higher rental revenue from existing properties and acquisitions in both FY2021 and FY2022.

With aggregate leverage at 36.8% and a history of accretive acquisitions, MLT has sufficient debt headroom to acquire more properties that can continue to boost its DPU in FY2023.

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Disclaimer: Royston Yang owns shares of NetLink NBN Trust.

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