Dividends always bring a big smile to my face.
These dividends represent a stream of useful passive income that supplements your active income while also acting as a good income source during your retirement.
That’s why you should look out for stocks that not only pay out consistent dividends but also keep an eye out for those that can increase them over time.
We singled out four promising Singapore stocks that not only increased their recent dividend payment but also did it in a big way.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of securities such as unit trusts, bonds, and equities.
The group also owns a digital bank that provides remittance services and allows individuals across the world to open savings accounts.
The fintech reported a strong set of earnings for the first half of 2024 (1H 2024).
Total revenue jumped 66% year on year to S$179.7 million while operating profit leapt more than fourfold year on year to S$38.6 million.
Net profit also soared more than fourfold year on year from S$6.6 million to S$30.5 million.
For its second interim dividend, iFAST proposed to pay out S$0.015 per share, 36.4% higher than the S$0.011 paid out a year ago.
The group also saw its assets under administration (AUA) hit a new record of S$22.37 billion, driven by net inflows of around S$790 million during the second quarter of 2024 (2Q 2024).
Looking ahead, iFAST believes that 2024 will see robust growth in revenue and profitability because of its Hong Kong ePension division.
Its digital bank division is expected to become an important growth driver in 2025 and beyond.
Centurion Corporation (SGX: OU8)
Centurion owns, develops, and manages purpose-built accommodation assets for workers and students in countries such as Singapore, Malaysia, China, the UK, the US, and Australia.
The group has a portfolio of 32 operational assets totalling 66,495 beds as of 30 June 2024.
For 1H 2024, Centurion enjoyed a 27% year-on-year increase in revenue to S$124.4 million, buoyed by strong occupancy in Singapore, the UK, and Australia and aided by positive rental reversions.
Net profit from its core business operations surged 47% year on year to S$48.5 million.
The group declared an interim dividend of S$0.015, a 50% year-on-year jump from the S$0.01 paid out a year ago.
Looking ahead, Centurion plans to enhance its project returns from selective asset enhancement initiatives (AEIs) across its portfolio.
It will also grow its accommodation business through selective acquisitions and look to recycle capital after undertaking an appropriate strategic review.
The group will also become increasingly asset-light by providing fee-based investment, asset, and property management services.
DBS Group (SGX: D05)
DBS should be no stranger to investors, being Singapore’s largest bank by market capitalisation.
The lender reported an impressive set of earnings for 1H 2024 as higher interest rates helped to lift the bank’s net interest income.
Total income increased by 11% year on year to S$11 billion on the back of a 6% year-on-year increase in net interest income to S$7.4 billion.
The bank’s net profit stood at S$5.7 billion, up 10% year on year from S$5.2 billion.
In tandem with the good results, DBS upped its quarterly dividend by 22.7% year on year to S$0.54.
The bank’s annualised dividend stood at S$2.16, giving its shares a forward dividend yield of 6%.
Despite market volatility and geopolitical tensions, CEO Piyush Gupta remains confident about the bank’s future.
Non-interest income is slated to grow in the mid-to-high teens percentage while total income is projected to grow by a high-single-digit percentage.
DBS’s net profit is estimated to grow in the mid-to-high-single-digit for 2024.
Aztech Global (SGX: 8AZ)
Aztech Global is a designer and manufacturer of Internet of Things (IoT) devices and data communication products.
The group has four research and development (R&D) centres in Singapore, Hong Kong and China along with three manufacturing facilities in China and Malaysia.
1H 2024 saw the group’s revenue dip by 4% year on year to S$373.2 million.
However, net profit rose 8.7% year on year to S$46.7 million.
The group also generated a positive free cash flow of S$57.1 million in 1H 2024, up more than fourfold year on year.
An interim dividend of S$0.05 was declared, 66.7% higher than the S$0.03 paid out a year ago.
Aztech Global increased its R&D headcount by 11% to enhance its R&D capabilities.
The group also implemented a manufacturing execution system to automate workflow and improve operational efficiency and production yield.
Over in Malaysia, Aztech Global has commenced setting up plastic injection machines at its Pasir Gudang plant in Johor.
The installation will be completed in 3Q 2024 with mass production to commence in 4Q 2024.
The group’s order book stood at S$304.4 million as of 30 July 2024.
Dividends always bring a big smile to my face.
These dividends represent a stream of useful passive income that supplements your active income while also acting as a good income source during your retirement.
That’s why you should look out for stocks that not only pay out consistent dividends but also keep an eye out for those that can increase them over time.
We singled out four promising Singapore stocks that not only increased their recent dividend payment but also did it in a big way.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of securities such as unit trusts, bonds, and equities.
The group also owns a digital bank that provides remittance services and allows individuals across the world to open savings accounts.
The fintech reported a strong set of earnings for the first half of 2024 (1H 2024).
Total revenue jumped 66% year on year to S$179.7 million while operating profit leapt more than fourfold year on year to S$38.6 million.
Net profit also soared more than fourfold year on year from S$6.6 million to S$30.5 million.
For its second interim dividend, iFAST proposed to pay out S$0.015 per share, 36.4% higher than the S$0.011 paid out a year ago.
The group also saw its assets under administration (AUA) hit a new record of S$22.37 billion, driven by net inflows of around S$790 million during the second quarter of 2024 (2Q 2024).
Looking ahead, iFAST believes that 2024 will see robust growth in revenue and profitability because of its Hong Kong ePension division.
Its digital bank division is expected to become an important growth driver in 2025 and beyond.
Centurion Corporation (SGX: OU8)
Centurion owns, develops, and manages purpose-built accommodation assets for workers and students in countries such as Singapore, Malaysia, China, the UK, the US, and Australia.
The group has a portfolio of 32 operational assets totalling 66,495 beds as of 30 June 2024.
For 1H 2024, Centurion enjoyed a 27% year-on-year increase in revenue to S$124.4 million, buoyed by strong occupancy in Singapore, the UK, and Australia and aided by positive rental reversions.
Net profit from its core business operations surged 47% year on year to S$48.5 million.
The group declared an interim dividend of S$0.015, a 50% year-on-year jump from the S$0.01 paid out a year ago.
Looking ahead, Centurion plans to enhance its project returns from selective asset enhancement initiatives (AEIs) across its portfolio.
It will also grow its accommodation business through selective acquisitions and look to recycle capital after undertaking an appropriate strategic review.
The group will also become increasingly asset-light by providing fee-based investment, asset, and property management services.
DBS Group (SGX: D05)
DBS should be no stranger to investors, being Singapore’s largest bank by market capitalisation.
The lender reported an impressive set of earnings for 1H 2024 as higher interest rates helped to lift the bank’s net interest income.
Total income increased by 11% year on year to S$11 billion on the back of a 6% year-on-year increase in net interest income to S$7.4 billion.
The bank’s net profit stood at S$5.7 billion, up 10% year on year from S$5.2 billion.
In tandem with the good results, DBS upped its quarterly dividend by 22.7% year on year to S$0.54.
The bank’s annualised dividend stood at S$2.16, giving its shares a forward dividend yield of 6%.
Despite market volatility and geopolitical tensions, CEO Piyush Gupta remains confident about the bank’s future.
Non-interest income is slated to grow in the mid-to-high teens percentage while total income is projected to grow by a high-single-digit percentage.
DBS’s net profit is estimated to grow in the mid-to-high-single-digit for 2024.
Aztech Global (SGX: 8AZ)
Aztech Global is a designer and manufacturer of Internet of Things (IoT) devices and data communication products.
The group has four research and development (R&D) centres in Singapore, Hong Kong and China along with three manufacturing facilities in China and Malaysia.
1H 2024 saw the group’s revenue dip by 4% year on year to S$373.2 million.
However, net profit rose 8.7% year on year to S$46.7 million.
The group also generated a positive free cash flow of S$57.1 million in 1H 2024, up more than fourfold year on year.
An interim dividend of S$0.05 was declared, 66.7% higher than the S$0.03 paid out a year ago.
Aztech Global increased its R&D headcount by 11% to enhance its R&D capabilities.
The group also implemented a manufacturing execution system to automate workflow and improve operational efficiency and production yield.
Over in Malaysia, Aztech Global has commenced setting up plastic injection machines at its Pasir Gudang plant in Johor.
The installation will be completed in 3Q 2024 with mass production to commence in 4Q 2024.
The group’s order book stood at S$304.4 million as of 30 July 2024.
Attention: Investors aiming for both growth and peace of mind. We’ve pinpointed 5 SGX stocks known for consistent dividends. If you want to build a retirement portfolio, but don’t want the stress of stock watching, this report is for you. Click HERE to download now.
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Disclosure: Royston Yang owns shares of iFAST Corporation and DBS Group.
