Receiving a dividend is always a happy affair.
There’s nothing more pleasing than the sound of this passive income stream hitting your bank account.
But wait, there is something even better to look forward to – that’s increasing dividends paid out by the same company.
We sifted out four Singapore stocks that are poised to report their full-year earnings and predict that they can increase their dividends.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company (telco) by market capitalisation.
The blue-chip group offers a wide range of services such as mobile, broadband, and Pay TV and also provides data centre and cybersecurity services to corporations.
The telco reported an encouraging set of earnings during its business update for the first nine months of fiscal 2025 (9M FY2025) ending 31 December 2024.
Underlying operating revenue inched up 0.7% year on year to S$10.6 billion.
Underlying operating profit rose 12.8% year on year to S$1.1 billion while underlying net profit climbed 11.3% year on year to S$1.9 billion.
The better performance was driven by increases in operating profit for both Optus and NCS, led by stronger postpaid average revenue per user (ARPU) in Australia, better project margins, and effective cost optimisation measures.
Regional associates’ profit after tax also increased by 4% year on year to S$1.28 billion for 9M FY2025.
Active capital management should support higher returns and management guides for total FY2025 dividend to be around S$0.165, higher than FY2024’s S$0.15.
Singtel already paid out a total of S$0.07 in interim dividends comprising a core interim dividend of S$0.056 and a value realisation dividend of S$0.014.
The telco will release its FY2025 results in the morning of 22 May before the market opens.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, builds, owns, and operates the passive fibre network infrastructure for Singapore’s next-generation nationwide broadband network (NBN).
NetLink reported a downbeat set of earnings for 9M FY2025.
Revenue slipped by 0.4% year on year to S$308.2 million while net profit fell 12.9% year on year to S$74.1 million.
However, this lower profit was because of a one-off reversal of S$6.2 million in 9M FY2024 following the resolution of disputed power charges.
Meanwhile, the number of residential connections continued to increase, going from 1,501,032 in the third quarter of fiscal 2024 (3Q FY2024) to 1,517,326 for 3Q FY2025.
The number of non-residential connections also increased from 53,222 to 53,454 during the same period.
For the first half of fiscal 2025 (1H FY2025), NetLink NBN Trust saw its distribution per unit rise from S$0.0265 to S$0.0268.
This increase came despite the NBN operator reporting an 8.3% year-on-year decline in net profit for 1H FY2025.
Hence, investors should be confident that NetLink NBN Trust can continue to increase its distributions as the group pays out 100% of its cash available for distribution, and not its net profit.
The group will release its FY2025 results after the market close on 15 May 2025.
SATS Ltd (SGX: S58)
SATS is one of the world’s largest providers of air cargo handling services and also Asia’s leading airline caterer.
The group provides a range of services including baggage handling, aviation security, food catering, and aircraft cleaning, among others.
SATS reported a solid set of earnings for 9M FY2025 with revenue climbing 14% year on year to S$4.3 billion.
Operating profit more than doubled from S$155.4 million in 9M FY2024 to S$367.4 million.
With higher share of profits from associates and joint ventures, SATS reported a net profit of S$205.1 million, up eightfold year on year.
The airline catering group also enjoyed strong operating statistics with a near-6% year-on-year increase in flights handled for 9M FY2025.
Meals served for the aviation division also jumped 24% year on year to 48.6 million.
Management noted that the International Air Transport Association (IATA) projects that global passenger traffic will increase by 8% year on year in 2025, which should fuel the continued growth of the airline and travel industry.
If SATS reports a strong FY2025 result, it is likely that the group can pay a final dividend higher than the S$0.015 paid out for FY2024.
The group will report its FY2025 earnings on 23 May 2025 after the market closes.
Azeus Systems (SGX: BBW)
Azeus Systems is a provider of software products and services and delivers innovative IT solutions to organisations and government agencies.
The group’s flagship product, Convene, is a paperless meeting solution used by clients in more than 100 countries.
Azeus reported a robust set of results for 1H FY2025 as revenue jumped 27% year on year to HK$169.3 million.
Gross margin improved from 68.5% to 72.8%, driven by strong growth in the group’s products.
Net profit soared 79% year on year to HK$48.9 million.
Azeus upped its interim dividend from HK$0.90 in the previous fiscal year to HK$1.60 for 1H FY2025.
Should this strong performance continue, the group should pay out a final dividend higher than the HK$1.90 that it paid out for FY2024.
Azeus did not announce the date of release for its FY2025 results but last year saw the group release its results on 30 May.
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Disclosure: Royston Yang owns shares NetLink NBN Trust.
