Receiving a consistent stream of cash flow is one of the key benefits of investing in dividend-paying stocks.
Not only are dividends tax-free, but they also help to supplement your active income and act as a great source of passive income when you retire.
Income investors are spoilt for choice when it comes to Singapore stocks as most of them dole out a dividend either half-yearly or annually.
The key is to search for companies that have increased their dividends so that, over time, you can increase your passive cash inflow.
Companies that latch on to sustainable growth trends can steadily increase their net profit and cash flows, putting them in a better position to pay out increasing dividends.
Here are three Singapore stocks that recently upped their dividends.
Golden Agri-Resources Ltd (SGX: E5H)
Golden Agri-Resources, or GAR, is a palm oil plantation company in Indonesia with a total planted area of 537,720 hectares as of 30 June 2022.
The group is an integrated agribusiness with an end-to-end supply chain that includes the production, refining, and selling of crude palm oil (CPO) and its associated products.
Revenue for 1H2022 rose 23% year on year to US$5.5 billion with the continued appreciation of CPO market prices.
The group’s underlying net profit surged 65% year on year to US$407 million.
An interim dividend of S$0.008 was declared, more than 51% above the S$0.00528 paid out last year.
Golden Agri-Resources believes the long-term outlook remains positive for the CPO market as demand will remain firm with growing populations amid rising income per capita.
VICOM Limited (SGX: WJP)
VICOM is a testing and inspection specialist that provides a comprehensive range of services in fields such as mechanical, vehicle, biochemical, and civil engineering.
1H 2022 saw the group’s revenue rise 8.5% year on year to S$53.3 million while operating profit climbed 10.6% year on year to S$16.5 million.
The better numbers were contributed by higher business volume as VICOM’s non-vehicle testing business saw better business in line with an improved economy.
Net profit improved by 9.2% year on year to S$13.1 million, and the group declared an interim dividend of S$0.0332, up from S$0.0304 a year ago.
Despite the solid results, CEO Sim Wing Yew listed inflationary pressures and a looming slowdown as risks to VICOM’s business.
As a whole, he expects demand to remain buoyant for the overall business.
AEM Holdings Ltd (SGX: AWX)
AEM provides comprehensive semiconductor and electronics test solutions for clients and has manufacturing plants in Singapore, Malaysia, Indonesia, Vietnam, China, South Korea, the US, and Finland.
Revenue for 1H2022 soared nearly three-fold year on year from S$192.2 million to S$540.5 million.
The stellar performance was contributed by volume ramp-up for new generation system level testing handlers and burn-in test handlers along with higher profits from CEI Pte Ltd which was acquired in March last year.
Net profit catapulted 180% year on year from S$29.7 million to S$83.1 million.
An interim dividend of S$0.067 was proposed, more than double the S$0.026 paid last year.
The group is on track for a record year as it revises its full-year 2022 revenue guidance to be in the range of S$750 million to S$800 million.
Meanwhile, AEM has also acquired a 53.3% stake in Nestek Korea Co., Ltd, a South Korean business that designs and manufactures pins and sockets.
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Disclaimer: Royston Yang owns shares of VICOM.
