One of the key reasons why people invest is to receive a regular stream of passive income.
Dividends represent a company’s distribution of its profits back to shareholders.
While the COVID-19 pandemic has adversely impacted many companies’ revenues and cash flows, there are still strong businesses out there that continue to pay out steady dividends.
For an income-seeking investor, the goal is to find a company that pays dividends regularly, so that he will receive a steady stream of passive cash inflows.
In this regard, companies that pay dividends every quarter fit the bill perfectly.
Not only do they signal that they have healthy and recurrent cash flows, but the regularity of payments also makes them very attractive to investors who desire a more consistent source of income.
Here are four companies that pay out quarterly dividends.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The exchange remains open through the “circuit breaker” period. Its securities and derivatives markets allow investors and fund managers to manage portfolio risks during this period of volatility.
As a result, SGX has been recording strong increases in both derivatives and securities traded volumes.
For March, total derivatives traded volume rose 41% year on year to 33 million contracts, while total securities market turnover value jumped by 124% year on year to S$48.2 billion.
The group pays a quarterly dividend of S$0.075, for a total annual dividend of S$0.30.
At the last traded price of S$10.00, SGX sported a 3.0% dividend yield.
DBS Group Holdings Ltd (SGX: D05)
DBS Group is one of Singapore’s three big banks.
The group offers a comprehensive range of banking services ranging from corporate banking to insurance and wealth management.
The bank may face higher loan losses as borrowers suffer from financial stress brought upon by the pandemic.
There have also been numerous requests by homeowners to defer their mortgage loan repayments.
Despite this, DBS should continue to do well as it has invested in digital banking capabilities and has non-interest income sources that can make up for the dip in net interest income.
The bank paid out a total annual dividend of S$1.23 in the fiscal year 2019, and its latest quarterly dividend was S$0.33.
iFast Corporation Ltd (SGX: AIY)
iFast is a financial technology company that operates a platform for the buying and selling of unit trusts, equities and bonds.
The group earns its keep by charging platform fees, wrap fees and trailer fees for the listing of funds on its platform and from clients who use its platform to transact.
These fees are charged based on the level of assets under administration (AUA) that is parked with the group.
As of 31 December 2019, iFast’s AUA hit a new record high of S$10 billion.
The group has also applied for a wholesale digital banking license along with two Chinese partners, Yillion Group and Hande Group.
Due to COVID-19, the Monetary Authority of Singapore will only announce the winners of the bid in the second half of 2020.
iFast pays an interim dividend of S$0.0075 per quarter for its first three quarters and a final dividend of S$0.009. The full-year dividend comes up to S$0.0315.
iFast’s shares offer a trailing 12-month dividend yield of around 3.6%.
UMS Holdings Limited (SGX: 558)
UMS Holdings provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and related products.
The group has production facilities in Singapore, Malaysia and California, USA.
UMS provided an update on the status of its production facilities that have been affected by the pandemic.
The company’s Penang factory has been allowed to operate at a minimal level from April 4 and the group needs to adhere to strict measures put in place by the Malaysian health ministry.
UMS’ factory in California has also resumed operations, albeit at a limited level.
Fortunately, the group’s Singapore factory has been allowed to operate normally as it has been classified as a manufacturer of essential products such as semiconductors.
UMS paid out an interim dividend of S$0.005 per quarter for its first three quarters, and also declared a final dividend of S$0.02 and a special dividend of S$0.005, taking its full-year 2019 dividend to S$0.04 in total.
At the last traded share price of S$0.75, UMS’ shares provided a dividend yield of around 5.3%.
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Disclaimer: Royston Yang owns shares in Singapore Exchange Limited, DBS Group Holdings Ltd and iFast Corporation Ltd.