This earnings season has been a litmus test of sorts for businesses.
A combination of surging interest rates and persistently high inflation has presented tough challenges for a wide swath of companies.
However, there is a small group of stocks that managed to beat the odds.
Not only have they posted better revenue and net profit, but they also increased their dividends along the way.
Here are four companies paying out higher dividends that should please an income investor.
StarHub Ltd (SGX: CC3)
StarHub is one of the three major telecommunication (telco) companies in Singapore.
The group offers mobile, broadband, and pay TV services to individuals along with cybersecurity and ICT services for corporations.
For the first half of 2024 (1H 2024), total revenue excluding the now-divested D ‘Crypt inched up 1% year on year to S$1.1 billion.
Service revenue edged up 2.4% year on year to S$939.2 million mainly because of higher contributions from StarHub’s Enterprise division.
Net profit rose 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 S$0.025 a year ago.
The group’s strategic priority is to advance on its DARE+ initiatives which it communicated during last year’s Investor Day.
StarHub reiterated its dividend guidance of “at least S$0.06” for 2024.
The group will focus on harvesting returns from its new growth platforms from 2025 and also has an ongoing share buyback programme.
ComfortDelGro Corporation Ltd (SGX: C52)
ComfortDelGro, or CDG, is a multi-modal transport operator with an extensive network that spans buses, rail, taxis, and private hire cars.
The business has a presence in 12 countries including Singapore, China, Ireland, and France, to name a few.
CDG announced an encouraging set of financial numbers for 1H 2024.
Revenue increased by 13.7% year on year to S$2.1 billion while operating profit improved by 19.9% year on year to S$140.5 million.
Net profit came in 21.4% higher than the previous year at S$95.3 million.
This set of results was also the fifth consecutive quarter where the land transport giant demonstrated a year-on-year improvement in net profit.
The group also generated a positive free cash flow of S$66.1 million, up nearly 47% year on year from the S$45 million churned out in 1H 2023.
An interim dividend of S$0.0352 was declared, up 21.4% year on year.
For its outlook, CDG expects its Singapore rail revenue to remain stable but bus revenues will decline from September this year.
However, this will be offset by improved margins for its London public bus contract renewals along with the commencement of four public bus franchises in Greater Manchester in January 2025.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of the integrated resort (IR) at Resorts World Sentosa (RWS) in Singapore.
1H 2024 saw the IR operator report a robust set of earnings with revenue jumping 25% year on year to S$1.36 billion.
Operating profit increased by 29% year on year to S$450.9 million while net profit also improved by 29% year on year to S$356.9 million.
Genting Singapore also generated a positive free cash flow of S$261.2 million for the half year, up 18.3% year on year.
An interim dividend of S$0.02 was declared, a 33% year-on-year increase from the S$0.015 paid out last year.
Management plans to continually rejuvenate RWS’s offerings and will roll out four intellectual property partnerships in 2H 2024.
These include Mega Minions from Illumination’s Despicable Me 4 at Universal Studios Singapore, Genshin Impact at S.E.A Aquarium, Netflix’s Sweet Home at the Halloween Horror Nights, and an immersive Harry Potter: Visions of Magic exhibition.
Also, the first phase of RWS 2.0 which features a revamp of several attractions such as the Singapore Oceanarium and a Central Lifestyle Corridor is slated for a soft opening in early 2025.
Two new luxury hotels will begin construction in the fourth quarter of this year and will add to the new slate of attractions and hospitality offerings soon.
Centurion Corporation Ltd (SGX: OU8)
Centurion owns, develops, and manages purpose-built specialised accommodation assets.
Its portfolio comprises 32 operational accommodation assets with 66,495 beds as of 30 June 2024.
Revenue for 1H 2024 climbed 27% year on year to S$124.4 million, driven by strong occupancy rates across Singapore, the UK, and Australia, along with positive rental reversions.
Net profit more than tripled year on year to S$118.2 million but included fair value gains of S$61.6 million.
Excluding these gains, Centurion’s core net profit would have risen 48% year on year to S$48.5 million.
The business also generated a positive free cash flow of S$50.6 million for 1H 2024.
Centurion declared an interim dividend of S$0.015, a sharp 50% increase from the previous year’s S$0.01.
There may be more to come.
Centurion is developing a new purpose-built workers accommodation asset with around 1,650 beds in Singapore that will be completed by December 2024.
In Malaysia, the group is working on an asset enhancement initiative (AEI) which will add another 920 beds by the end of this year.
Two further AEIs are planned for Malaysia which will add a further 2,690 beds by 2025.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
