It’s always a great feeling to receive a dividend from one of your investments.
The payment of a dividend shows that the company is happy to reward shareholders and also implies that it has the sufficient financial strength to afford the payment.
But it’s even better when a stock pays out a special dividend.
Investors can treat this additional payment as a bonus that comes on top of their regular dividends.
Typically, a company pays a special dividend after it makes a one-off cash gain from an asset sale or from a sale of its equity holdings.
In other times, it may be paid out to mark a special occasion such as an anniversary or simply to reward shareholders from its accumulated excess cash.
Here are four stocks that recently declared a special dividend that you can consider adding to your buy watchlist.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a leading real estate developer with a strong portfolio of residential and investment properties across 104 locations in 29 countries and regions.
The property giant reported a turnaround for its latest fiscal 2022 first half (1H2022) earnings.
Revenue climbed 23.5% year on year to S$1.47 billion while net profit hit S$1.1 billion, a sharp reversal from the S$32.1 million net loss a year ago.
The record net profit was due to divestment gains from the sale of Millennium Hilton Seoul as well as a one-off gain from the deconsolidation of CDL Hospitality Trusts (SGX: J85).
As a result, CDL declared a special interim dividend of S$0.12.
The group has more than 2,000 Singapore residential units in its launch pipeline and is also working on redevelopment initiatives.
Elsewhere, it is redeveloping the Fuji Xerox to increase its gross floor area by 25% and also redeveloping Central Mall and Central Square into an integrated mixed-use development.
Straits Trading Co Ltd (SGX: S20)
Straits Trading, or STC, is a 135-year-old conglomerate with interests in resources, property, and hospitality.
The group reported a strong set of earnings for 1H2022, with total revenue rising 23.3% year on year to S$270.1 million mainly due to higher tin mining and smelting revenue.
In particular, the real estate segment recorded an exceptional gain of S$658.1 million from the disposal of shares in ARA Asset Management Limited.
To reward shareholders, STC has proposed a special dividend in specie of either 180 shares of STC for every 1,000 shares held, or 145 shares of ESR Group Limited (HKSE: 1821).
The group expects to continue benefitting from current tin prices and will expand its mining pit eastward to improve throughput volume.
However, STC remains cautious about its hospitality segment where its recovery could be threatened by economic uncertainties and rising costs.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, had S$125 billion of real estate assets under management and S$86 billion of funds under management as of 30 June 2022.
CLI presented a good set of financial numbers for fiscal 2021 (FY2021), with revenue increasing 15.6% year on year and core net profit rising 12.2% year on year to S$497 million.
Because of the robust results, the property developer paid out a final dividend of S$0.12 and a special dividend of S$0.03.
For 1H2022, CLI continued to report a healthy set of financials.
Revenue rose 29.1% year on year to S$1.35 billion while core net profit jumped 31.1% year on year to S$346 million.
If the group can maintain this momentum, investors may see an increase in the dividend for FY2022.
ComfortDelGro Corporation Limited (SGX: C52)
ComfortDelGro Corporation Limited, or CDG, is a land transport giant with a total fleet size of 34,000 buses, taxis and rental vehicles.
CDG saw a gradual recovery in its business as economic activity picked up in the majority of the countries that the group operates in, except for China.
1H2022 revenue inched up 6.7% year on year to S$1.86 billion.
Net profit surged by 30.4% year on year to S$118.7 million.
The jump in net profit was because of an exceptional gain of S$30.5 million recognised on the disposal of the Alperton property in London.
Because of this one-off gain, CDG declared a special dividend of S$0.0141 in addition to an interim dividend of S$0.0285.
Although CDG was recently replaced by Emperador Inc (SGX: EMI) within the Straits Times Index (SGX: ^STI), prospects look bright for the transport conglomerate.
Taxi revenue is expected to improve while rail ridership in Singapore and bus and coach charter services in Australia are seeing demand increases.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.