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    Home»Dividend Stocks»3 Temasek-Backed Dividend Stocks Rewarding Investors Before September 2026
    Dividend Stocks

    3 Temasek-Backed Dividend Stocks Rewarding Investors Before September 2026

    DBS, Singapore Airlines and Olam Group are paying dividends this month, but the source of their payouts reveals very different income stories.
    The Smart InvestorBy The Smart InvestorAugust 20, 20265 Mins Read
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    Three companies backed by Temasek Holdings pay dividends within a week of each other this month. 

    DBS Group Holdings Ltd (SGX: D05) pays on 25 August. 

    Singapore Airlines Limited (SGX: C6L), or SIA, follows on 28 August. 

    Olam Group (SGX: VC2) closes the month on 31 August.

    Temasek holds 28% of DBS and 50% of SIA as at 31 March 2026, while its stake in Olam runs to 52%.

    A payment date tells you money is coming, but it does not tell you where that money came from. 

    That question separates these three.

    Did this quarter earn DBS’s dividend?

    Singapore’s largest lender reported its second-quarter 2026 (2Q2026) results on 6 August 2026. 

    Total income rose 6% year on year (YoY) to S$6.1 billion – the figure crossing S$6 billion for the first time.

    Net interest income fell 2% to S$3.6 billion. 

    The net interest margin narrowed 18 basis points to 1.87% from 2.05% a year ago. 

    Customer loans grew 8% YoY to S$469.4 billion. 

    The non-performing loan ratio stayed at 1.0%.

    Non-interest income rose 21% YoY to S$2.5 billion, carrying the quarter. 

    Net fee and commission income climbed 25% to S$1.5 billion, while wealth management fees advanced 42% to S$919 million.

    Profit before allowances rose 8% YoY to a record S$3.7 billion, and net profit advanced 9% to S$3.1 billion. 

    Return on equity (ROE) reached 17.9%.

    The board declared an interim dividend of S$0.66 per share plus a capital return dividend of S$0.15, bringing the quarterly payout to S$0.81. 

    Read the two lines apart.

    Management raised its full-year guidance as it expects 2026 total income to exceed 2025 levels and commercial book non-interest income to grow in the mid-teens.

    Who paid for Olam’s special dividend?

    Revenue from continuing operations fell 18.3% YoY to S$12.5 billion for the six months to 30 June 2026. 

    Olam has re-presented its prior-year figures for discontinued operations. 

    The comparison is not like-for-like.

    Profit attributable to owners rose 488.8% YoY to S$1.9 billion. 

    A S$2 billion gain on the disposal of subsidiaries – including S$1.34 billion from the sale of a 44.58% stake in Olam Agri Holdings to SALIC and S$409.8 million from the sale of Mindsprint to Wipro – did the work. 

    Set the disposals aside, and the picture changes. 

    Profit from continuing operations fell 66% YoY to S$55.6 million.

    Free cash flow is the lifeblood of dividends, and Olam’s turned positive at S$887.4 million, against negative S$974.8 million a year ago. 

    A S$514.9 million release in receivables helped. 

    Cash reached S$2.3 billion as at 30 June 2026, with total borrowings falling to S$10.2 billion from S$14.4 billion at end-2025. 

    The group still carries net debt of about S$7.9 billion.

    The board declared an interim dividend of S$0.01 per share, half the S$0.02 paid a year ago. 

    It declared a special dividend of S$0.06 alongside; the special runs six times the ordinary payout. 

    Tranche 2 of the Olam Agri sale falls due within three years of April 2026.

    Which financial year earned SIA’s payout?

    SIA reported its first quarter for the financial year ending 31 March 2027 (1QFY2027) on 28 July 2026. 

    Revenue climbed 19.3% YoY to a record S$5.7 billion. 

    SIA and Scoot flew a record 10.9 million passengers. 

    Passenger yields improved 12% YoY, and cargo revenue rose 33.3% on a 28.1% increase in yields.

    Even so, the group swung to a net loss of S$75.8 million from a profit of S$186.1 million a year ago. 

    Costs explain the gap. 

    Net fuel expenses jumped 78.5%, or S$991 million, due to the Middle East conflict pushed up jet fuel prices.

    Higher losses at Air India deepened the shortfall.

    Cash generation held up. 

    Free cash flow reached about S$810 million, from operating cash flow of S$1.36 billion less capital expenditure of S$0.55 billion. 

    SIA held S$9.1 billion in cash and bank balances as at 30 June 2026 against total debt of S$10.7 billion. 

    That leaves net debt of about S$1.6 billion.

    SIA declared no dividend for the quarter; it pays only at its half-year and full-year results. 

    The dividend that arrives on 28 August belongs to the financial year that ended 31 March 2026. 

    The board set it at S$0.29 per share (comprising a S$0.22 final dividend and a S$0.07 special dividend).

    The year now underway has opened with a loss.

    Management expects air travel and cargo demand to hold up. 

    It also flagged that elevated fuel prices have added cost pressure that fare adjustments cannot fully offset.

    Get Smart: Trace the cash before you count on it

    Three dividends land in eight days. 

    Three different sources funded them.

    DBS pays out of the quarter that earned it; Olam pays largely out of assets it sold; and SIA’s cheque comes from a financial year that has already closed.

    Put the same questions to any dividend before you rely on it. 

    Did operations fund it, or did a disposal? 

    Did the board hold the ordinary payout, or quietly cut it while a special dividend drew the eye? 

    Which financial year actually earned the money?

    One shareholder collects on all three cheques this month, which tells you who owns the companies, but nothing about which cheque still arrives in 2027.

    One of these six companies is the only one legally allowed to operate in Singapore. It has increased its dividend for 16 consecutive years. Discover which one it is in our free report here.

    Follow us on Facebook, Instagram, Telegram and YouTube for the latest investing news and analyses!

    Disclosure: The Smart Investor owns shares of DBS.

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