As 2024 draws to a close, income investors will be keeping their eyes peeled on what 2025 has to bring.
Specifically, they will be scrutinising the latest set of earnings from the stocks within their portfolio.
As the business grows its revenue and profits, so will the chances of increasing their dividends.
We showcase three Singapore stocks that are dishing out dividends in the first month of 2025.
ESR REIT (SGX: J91U)
ESR REIT, or ESR, was formerly known as ESR-Logos REIT.
The REIT owns a portfolio of 71 properties with total assets under management (AUM) of S$4.3 billion.
ESR REIT released its recent third quarter of 2024 (3Q 2024) business update.
Gross revenue for the quarter dipped by 6.3% year on year to S$272.5 million while net property income (NPI) fell by 6.5% year on year to S$192.7 million.
The portfolio also exhibited a healthy portfolio occupancy of 91.3% with a positive rental reversion of 11% for 3Q 2024.
Gearing stood low at just 36% with a cost of debt of 3.96%.
The REIT’s next loan is due for refinancing in April 2025, and three-quarters of ESR REIT’s loans are on fixed rates.
The manager had previously announced the acquisition of two properties – a 100% stake in ESR Yatomi Kisosaki Distribution Centre in Japan, and a 50% stake in 20 Tuas South Avenue 14 in Singapore.
These acquisitions are projected to be accretive to distribution per unit by 3%, and will be financed by debt, perpetual securities, and the issuance of preferential units at S$0.305 per unit.
ESR REIT declared an advance distribution of S$0.00722 per unit which will be paid on 8 January 2025.
Apart from this acquisition, the REIT manager also announced the divestment of 81 Tuas Bay Drive at a 16.7% premium to its valuation.
Geo Energy Resources (SGX: RE4)
Geo Energy Resources is an Indonesian coal producer that operates coal mines and produces and sells coal throughout the region.
The group recently released its 3Q 2024 business update where revenue tumbled by 24% year on year to US$84.2 million.
Gross profit declined by a smaller 11% year on year to US$14.1 million.
Net profit, however, plunged by 39% year on year because of sharply higher finance costs.
However, Geo Energy generated significantly higher operating cash flow of US$38.3 million for the quarter, up from just US$4.3 million in the prior year.
Free cash flow for 3Q 2024 stood at US$11.8 million.
An interim dividend of S$0.002 was declared which will be paid on 8 January 2025.
Just last week, the group announced that its integrated infrastructure, which consists of a 92km hauling road and an associated jetty in the South Sumatra and Jambi provinces, has secured approval from China Export & Credit Insurance Corporation for full insurance coverage.
Once completed, Geo Energy targets to achieve cost savings of over US$10 per tonne in coal transportation while boosting the production capacity of its PT Triaryani coal mine to 25 million tonnes per annum.
Medinex (SGX: OTX)
Medinex is a provider of one-stop support and consultancy services.
The group’s services include finance, accounting and taxation, human resource management, and medical support services.
Medinex released its fiscal 2025’s first half (1H FY2025) results for the period ending 30 September 2024.
Revenue inched up 4.6% year on year to S$6.3 million.
With a fall in other expenses, the group saw its net profit soar 82.5% year on year to S$1.4 million.
The business generated a positive free cash flow of S$1.2 million for 1H FY2025, up nearly 69% from a year ago.
Medinex declared an interim dividend of S$0.0084, unchanged from the previous year.
This dividend will be paid on 20 January 2025.
Management intends to utilise digital marketing to capture new markets and broaden the group’s client base.
Medinex also plans to drive higher efficiency, foster strategic partnerships, and achieve operational synergies.
However, management also warned of increased competition in the form of new entrants that leverage technology to streamline operations and reduce manpower costs.
Other risks include inflationary cost pressures and a potential change in the regulatory environment.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
