Yahoo Finance Income Investors Take Note: Here Are 5 Singapore Stocks Dishing Out Consistent Dividends
Income investors are a lucky bunch here in Singapore.
The local stock market has a plethora of dividend-paying stocks that can bring a smile to the faces of income-seeking investors.
However, a more important attribute you should look for is the consistency of payments.
Stocks that pay out consistent and even rising dividends are a more attractive choice for inclusion in a long-term portfolio than those with erratic payouts.
Here are five Singapore stocks that have a good track record of consistent and reliable dividend payments.
iFAST Corporation Limited (SGX: AIY)
iFAST Corporation Limited is a financial technology company that operates a platform for the buying and selling of unit trusts, equities, and bonds.
The group has reported a sparkling set of earnings for the third quarter and first nine months of 2023 (3Q 2023 and 9M 2023).
For 9M 2023, net revenue rose 18.1% year on year to S$104.5 million with operating profit more than doubling year on year to S$20.3 million.
Net profit shot up from S$5.1 million to S$15.1 million.
iFAST’s dividend has increased from S$0.0315 in 2019 to S$0.048 in 2021 and has stayed stable in 2022.
For 9M 2023, the total dividend paid thus far, at S$0.034, is similar to what was paid in the prior year.
The fintech group’s assets under administration (AUA) grew by 12.6% year on year to reach a new record high of S$19.12 billion as of 30 September 2023.
iFAST expects revenue and profitability in 2024 to show “robust growth” compared to 2023.
CEO Lim Chung Chun also hinted at higher dividends as profits are expected to rise significantly.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four divisions – energy engineering, real estate, geospatial engineering, and healthcare.
The group reported a robust set of earnings for the first half of fiscal 2024 (1H FY2024).
Revenue climbed 49% year on year to S$367.9 million with gross profit increasing by 42% year on year to S$105.3 million.
Net profit (adjusted for one-offs) soared 89% year on year to S$25.8 million.
Boustead Singapore’s free cash flow more than doubled year on year to S$97.4 million.
The conglomerate paid out an interim dividend of S$0.015, the same as what was paid out a year ago.
Boustead started FY2017 with just S$0.02 of annual dividends but has steadily increased this to S$0.03 (FY2018 to FY2020) and S$0.04 (FY2021 to FY2023).
The group had an order backlog of S$433 million at the end of 1H FY2024 of which S$152 million belonged to the Energy Engineering division and S$281 million was parked under the Real Estate division.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering, or STE, is a technology, defence, and engineering group serving customers in more than 100 countries.
The group was paying out a consistent annual dividend of S$0.15 from 2017 to 2021 but raised this to S$0.16 in 2022, broken up into four quarterly payments of S$0.04 per share.
For 9M 2023, STE has continued to pay out S$0.04 per quarter.
The blue-chip engineering group’s 9M 2023 revenue rose 12% year on year to S$7.3 billion.
During this period, STE snagged S$11.7 billion of new contracts, the bulk of which went to its Defence & Public Security segment.
Its order book stood at S$27.5 billion as of 30 September 2023.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, builds, owns, and operates the passive fibre infrastructure of Singapore’s Nationwide Broadband Network (NBN).
The group has a monopoly on Singapore’s residential broadband fibre connections and posted a 2.9% year-on-year rise in revenue to S$205.3 million for 1H FY2024.
Net profit dipped by 3.1% year on year to S$52.9 million but NetLink NBN Trust paid out a slightly higher distribution per unit (DPU) of S$0.0265 (1H FY2023: S$0.0262).
The Trust has seen steadily higher DPU over the years, starting from S$0.0488 in FY2019 and ending at S$0.0524 for FY2023.
As of 30 September 2023, NetLink NBN Trust had 1,492,000 residential connections and 52,600 non-residential ones.
Both numbers have seen a steady rise since FY2021, and the Trust is also exploring opportunities to invest in telecoms infrastructure businesses overseas that can generate a steady cash flow.
The Hour Glass (SGX: AGS)
The Hour Glass, or THG, is a luxury watch retailer with more than 40 boutiques in nine cities within the Asia Pacific region.
The group is the official retailer for a variety of Swiss watch brands such as Rolex, Cartier, Hublot, and Panerai.
THG reported a mixed set of earnings for 1H FY2024.
Total revenue edged up 1% year on year to S$566.3 million but net profit fell by 9% year on year to S$77 million on higher expenses and finance costs.
Despite the weak results, THG still generated a positive free cash flow of S$40.1 million for 1H FY2024.
The luxury watch retailer maintained its interim dividend of S$0.02 per share.
For FY2023, THG paid out a total annual dividend of S$0.08, unchanged from FY2022.
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Disclosure: Royston Yang owns shares of iFAST Corporation, Boustead Singapore and NetLink NBN Trust.
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