Income investors’ main aim is to park their money in dividend-paying stocks that can dole out a consistent payout over time.
The good news is that the local bourse contains many good dividend-paying stocks.
REITs qualify as a great asset class for regular distributions as they need to pay out at least 90% of their earnings to qualify for tax benefits.
Aside from REITs, many non-REIT stocks also pay out dependable dividends for investors to allocate their money.
Here are four Singapore stocks paying out dividends in July that you can add to your buy watchlist.
UMS Holdings Ltd (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products.
The group reported a downbeat set of earnings for its fiscal 2023’s first quarter (1Q 2023).
Revenue dipped by 5% year on year to S$80.8 million while net profit fell by 10% year on year to S$17.4 million.
The weaker performance in the semiconductor segment was offset by a 40% year-on-year surge in its aerospace division’s revenue.
UMS generated a positive free cash flow of S$16.6 million for the quarter.
The group also maintained its interim dividend of S$0.01 which will be paid out on 27 July.
SEMI, an industry association for companies in the electronic design and manufacturing supply chain, predicts that equipment spending for front-end facilities will fall by 22% year on year in 2023 before rebounding by 21% year on year in 2024.
The Semiconductor Industry Association believes that the long-term outlook for the semiconductor industry remains bright despite the current short-term cyclical downturn.
AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT, or AAREIT, is an industrial REIT with a portfolio of 29 properties of which 26 are in Singapore and three are in Australia.
Late last month, AAREIT launched an equity fundraising (EFR) exercise to raise gross proceeds of around S$100 million.
The EFR involved a private placement of new units at S$1.214 per unit and a preferential offer (based on 35 new units for every 1,000 held) at S$1.189 per unit.
Because of this EFR, AAREIT’s manager has declared an advance distribution of S$0.018 that will be paid on 20 July.
This advance distribution is for the period from 1 April 2023 to 11 June 2023.
The EFR is to help the REIT unlock value through an active enhancement and redevelopment strategy and to give it the financial flexibility to pursue acquisitions.
This move will reduce AAREIT’s aggregate leverage from 36.1% as of 31 March 2023 to 32.8% while increasing its debt headroom from the current S$731 million to S$1 billion.
Kimly Ltd (SGX: 1D0)
Kimly is one of the largest coffee shop operators in Singapore and operates and manages a network of 84 food outlets and 170 food stalls as of 31 March 2023.
The group also operates a central kitchen supplying sauces, marinades and semi-finished food products to its food stalls.
For its fiscal 2023’s first half (1H FY2023) ending 31 March, revenue dipped by 0.9% year on year to S$155.5 million.
The lower contribution for its food retail division was offset by a better performance by its outlet management and outlet investment divisions.
Net profit edged up by 0.7% year on year to S$18.7 million.
Kimly declared an interim dividend of S$0.0056 for 1H FY2023, similar to what was paid out in the prior year.
This dividend will be paid out on 14 July.
The group opened its fourth Kedai Kopi outlet in 1H FY2023 and also a new Tenderfresh Makcik Tuckshop restaurant, adding to its list of food outlets.
Kimly intends to seek out more opportunities to secure food outlet leases in the heartlands to grow its presence.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with 85 properties in Singapore and 56 in the US with assets under management of S$8.8 billion as of 31 March 2023.
MIT had just reported a mixed set of earnings for FY2023 ending 31 March.
Both revenue and net property income saw year-on-year increases by distribution per unit slipped by 1.7% year on year to S$0.1357 because of higher expenses.
The industrial REIT also announced its first acquisition in two years – that of a 98.47% stake in a data centre in Osaka, Japan, for S$500.1 million.
Similar to AAREIT, MIT is also paying an advanced DPU of S$0.0248 for 1 April 2023 to 5 June 2023.
This distribution will be paid out on 6 July.
The purchase will be accretive to the REIT’s DPU while its recently-completed redevelopment of Mapletree Hi-Tech Park @ Kallang Way should also start contributing to rental income for FY2024.
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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust.