A select group of US companies are well-known for paying out dividends over many decades.
The popular stocks include Coca-Cola (NYSE: KO) and Procter and Gamble (NYSE: PG).
Coca-Cola has increased its dividend over six decades while Procter and Gamble has done so for 66 consecutive years.
The problem, of course, is that Singapore income investors need to cough up a 30% withholding tax on dividends received from US companies.
This is where Singapore stocks shine by being able to pay a higher dividend yield compared to its US counterparts.
Back home, you’d be surprised to know that several companies have a long history of paying out dividends through good times and bad.
While Singapore is a young nation compared to the US, the city state is home to businesses that have remained resilient through booms and busts, all while churning out a steady stream of passive income for investors.
Here are three stocks that have paid out dividends for two decades or more.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group has consistently paid out a dividend over the years and has done so since its fiscal 2001 ended 30 June 2001.
At the start, the dividend per share stood at S$0.055 and since increased its dividend payout to S$0.32 for FY2021.
SGX enjoys a natural monopoly and continues to generate healthy revenue and free cash flow through different economic cycles.
The bourse operator believes that it occupies an investment “sweet spot” by having exposure to Asian opportunities along with interesting growth areas such as ETFs and ESG.
The group released a respectable set of earnings for its fiscal 2022’s first half ended 31 December 2021.
Revenue was flat year on year at S$522 million while net profit was down 9% year on year to S$219 million due to higher expenses.
Despite the lower net profit, SGX continued to pay out a dividend of S$0.08 for its second quarter, maintaining its trailing 12-month dividend of S$0.32.
SGX has completed its acquisition of MaxxTrader last year and its foreign exchange electronic communication network has also gone live.
The group is also linking up with India, Thailand and Shenzhen’s stock exchanges to provide a wider breadth of investment options for its clients.
VICOM Limited (SGX: WJP)
VICOM is a provider of inspection and testing services for vehicles and in fields such as mechanical, biochemical, and civil engineering.
The group was incorporated in 1981 and listed on the exchange in 1995 and is a subsidiary of ComfortDelGro Corporation Limited (SGX: C52).
VICOM is a free cash flow machine and the group has been paying out a dividend since the turn of the century.
The total dividend back in the fiscal year 2000 (ended 31 March 2000) was S$0.00925 after adjusting for the 4-for-1 stock split in 2020.
For FY2021, VICOM paid out a total dividend of S$0.0828, representing nearly a nine-fold increase in annual dividend over the past 21 years.
Things are looking up for the testing and inspection specialist as the business is set to improve along with the reopening of Singapore’s economy.
Singapore Technologies Engineering Ltd (SGX: S63)
Singapore Technologies Engineering Ltd, or STE, is a technology, defence and engineering group that serves customers in the aerospace, smart city, and public security sectors.
STE was listed back in December 1997 and has, incredibly, been paying out an annual dividend for the last 24 years.
Temasek Holdings is the engineering group’s largest shareholder with a 51.7% stake as of February 2022.
STE continues to do well, judging its latest fiscal 2022’s first quarter (1Q2022) business update.
Group revenue saw a 13% year on year rise to S$2 billion, with all three divisions seeing year on year revenue rises.
The engineering giant clinched S$2.4 billion of new contracts in 1Q2022, bringing its order book to a new record-high of S$21.3 billion.
The board has approved an interim dividend of S$0.04 per share per quarter, taking the prospective full-year dividend to S$0.16, up from S$0.15 a year ago.
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Disclaimer: Royston Yang owns shares of Singapore Exchange Limited and VICOM Limited.
