5 Singapore Stocks Paying Out Dividends in August
If you are an income investor, you’re in luck.
Both August and September are great months for receiving dividends as most companies which have December year-ends will declare an interim dividend.
Coupled with companies and REITs that declare quarterly dividends, there is a whole laundry list of stocks that can provide you with an attractive passive income stream.
We selected five stocks that will pay out a dividend in August and also briefly discussed their latest earnings report.
iFAST Corporation (SGX: AIY)
iFAST is a financial technology company that operates a platform for the buying and selling of unit trusts, bonds, equities, and exchange-traded funds (ETFs).
The group recently reported a stellar set of earnings for the second quarter of 2024 (2Q 2024).
Total revenue surged by nearly 73% year on year to S$93.7 million, driven by contributions from iFAST’s ePension division and fund inflows into its core wealth management division.
Operating profit nearly quadrupled year on year from S$5.1 million to S$20.2 million.
Net profit came in at S$16 million for the quarter, a sharp jump from just S$3.6 million in 2Q 2023.
To top it off, iFAST’s assets under administration (AUA) also hit a new record of S$22.37 billion.
The fintech declared an interim dividend of S$0.015 (2Q 2023: S$0.011) that will be paid on 21 August.
Management believes that the ePension division in Hong Kong will be an important growth driver in 2024 and 2025.
The overall wealth management business is also expected to display healthy growth.
Sabana REIT (SGX: M1GU)
Sabana REIT is an industrial REIT with 18 properties in Singapore covering the high-tech industrial, warehouse and logistics, and general industrial sectors.
The REIT’s total assets under management (AUM) stood at more than S$1 billion as of 31 December 2023.
The REIT reported a downbeat set of earnings for the first half of 2024 (1H 2024).
Gross revenue dipped by 0.2% year on year to S$55.2 million.
Net property income (NPI) remained constant at S$27.2 million.
However, distribution per unit (DPU) fell by 16.8% year on year to S$0.0134 because of higher finance costs, a larger unit base, and the retention of 10% of distributable income to fund costs for the internalisation of the manager.
The DPU will be paid on 29 August.
Sabana REIT saw its occupancy rate fall sharply from 93.9% a year ago to 78.8%.
Despite this fall, the REIT reported a positive rental reversion of 16.8% across its portfolio.
Sabana@1TA4, the REIT’s second major asset enhancement initiative (AEI), received its temporary occupation permit in early July.
The manager is in discussion with a prospective client to lease out around 64% of the building’s net lettable area.
CapitaLand Ascott Trust (SGX: HMN)
CapitaLand Ascott Trust, or CLAS, is a hospitality trust that owns a portfolio of 102 properties with more than 18,000 units in 45 cities across 16 countries.
For 1H 2024, the hospitality trust reported a mixed set of results.
Revenue rose 11% year on year to S$386.4 million but distribution per stapled security (DPSS) slipped 8% year on year to S$0.0255.
This DPSS will be paid on 29 August.
If adjusted for one-off items, DPSS would have been just 1% lower year on year.
CLAS’ portfolio revenue per available unit (RevPAU) inched up 4% year on year to S$155 for the second quarter of 2024 (2Q 2024).
The hospitality trust had divested four properties, all at premiums to their book values, and plans to recycle the capital into optimal uses.
CLAS is also enhancing its portfolio with new development assets. It completed a turnkey acquisition of a 258-unit rental housing property called Teriha Ocean Stage in January 2024.
This purchase is expected to increase DPSS by 0.5%.
Suntec REIT (SGX: T82U)
Suntec REIT is a retail and commercial REIT that owns Suntec City Mall and has ownership interest in Suntec City Convention Centre, One Raffles Quay, and Marina Bay Financial Centre.
The REIT also owns commercial buildings in Australia and the UK.
Suntec REIT saw revenue inch up 1.2% year on year to S$226.9 million but NPI slid 1.5% year on year to S$151 million.
DPU for 1H 2024 fell by 12.5% year on year to S$0.03042 because of higher financing costs and vacancies at its 55 Currie Street and The Minster Building.
For 2Q 2024, the REIT declared a DPU of S$0.01531 that will be paid on 29 August.
Suntec REIT’s aggregate leverage stood fairly high at 42.3% with an all-in financing cost of 4.02%.
Looking ahead, the manager plans to unlock value from AEIs and divest mature assets to recycle capital.
Cortina Holdings (SGX: C41)
Cortina Holdings sells and markets luxury watches such as Rolex, Patek Philippe, Cartier, and Seiko.
The group reported a weak set of earnings for its fiscal 2024 (FY2024) ending 31 March 2024.
Revenue dipped by 2% year on year to S$811 million.
Net profit tumbled 20% year on year to S$61.1 million.
Despite the fall in net profit, Cortina still churned out a positive free cash flow of S$13.4 million for FY2024.
The group declared a final dividend of S$0.02 and a special dividend of S$0.14, unchanged from a year ago.
Payment of these dividends will be made on 16 August.
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Disclosure: Royston Yang owns shares of iFAST Corporation and Suntec REIT.
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