If you are a dividend investor, you’re in luck.
The Singapore market is filled with reliable dividend payers that can provide you with a steady stream of passive income.
Remember that dividends do not attract personal taxes, unlike rental income from properties that need to be declared when you report your taxes.
Other than searching for stocks that dish out dividends, you should also keep an eye out for those that manage to increase their payouts.
We shine the spotlight on three stocks that upped their dividends during the recent earnings season.
Tiong Woon Corporation (SGX: BQM)
Tiong Woon is a leading integrated heavy lift specialist and service provider that supports the oil and gas, petrochemical, infrastructure, and construction sectors.
The group purchases and operates its own heavy lifting and haulage equipment, tug boats, and barges.
Tiong Woon announced a strong set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.
Revenue increased by 5% year on year to S$143.1 million with gross profit improving by 9% year on year to S$59 million.
With expenses rising less than the gross profit, Tiong Woon’s net profit jumped 16% year on year to S$18.2 million.
The group also generated a positive free cash flow of S$11.5 million.
In line with the good results, Tiong Woon declared a total dividend of S$0.015 comprising a final dividend of S$0.006 and a special dividend of S$0.009.
This dividend was 50% higher than the S$0.01 that was paid out in FY2023.
Despite geopolitical concerns and ongoing cost pressures, Tiong Woon maintains a positive outlook as customer demand for its services is expected to remain resilient.
Regional markets such as India, Thailand, and Saudi Arabia should also provide steady business for the group.
Civmec Limited (SGX: P9D)
Civmec is an Australian company and is an integrated and multi-disciplinary construction and engineering services provider to the energy, resources, infrastructure, and marine & defence sectors.
The group’s core capabilities include heavy engineering, shipbuilding, modularisation, site civil works, and industrial insulation, among others.
Like Tiong Woon, Civmec also turned in an impressive report card for FY2024.
Revenue climbed 24.4% year on year to A$1 billion while net profit increased by 11.6% year on year to A$64.4 million.
The engineering services company also churned out a positive free cash flow of A$46.1 million for FY2024.
Civmec’s final dividend leapt 16.7% year on year from A$0.03 to A$0.035.
With this final dividend, FY2024’s total dividend came up to A$0.06, a 20% year-on-year increase from the A$0.05 paid out in FY2023.
The group’s new maintenance facility at Port Hedland has been completed and is now operational.
This new facility allows Civmec to deliver maintenance work for local clients and enhances its Pilbara-focused maintenance service capabilities.
The firm also purchased an adjoining workshop next to Civmec’s land in Gladstone in Central Queensland.
This purchase is to expedite the group’s goal to establish a permanent base in this region and will enable Civmec to increase its service offerings there.
The company’s order book stood at A$853 million with management displaying high confidence in order book replenishment along with medium-term growth.
Civmec’s current pipeline of work is near historical highs with significant total addressable markets identified for the sectors that it is operating in.
StarHub Ltd (SGX: CC3)
StarHub is one of the three major telecommunication companies (telcos) in Singapore and offers a comprehensive range of mobile, broadband, and pay-TV services.
The group released an encouraging set of earnings for the first half of 2024 (1H 2024).
Total revenue (excluding D’Crypt) inched up 1% year on year to S$1.1 billion with service revenue increasing by 2.4% year on year to S$939.2 million.
Net profit excluding D’Crypt shot up 8.7% year on year to S$83.3 million.
The telco also generated a positive free cash flow of S$101.6 million for 1H 2024.
An interim dividend of S$0.03 was declared, up from the S$0.025 that was paid out a year ago.
The group has reiterated its guidance to pay out “at least S$0.06” in dividends per share for 2024.
Management intends to introduce cross-product bundling for consumers while driving regional growth for its enterprise division.
With an evolving business model, StarHub plans to harvest returns from its new growth platforms come 2025.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
