2023 is almost ending.
As we lower the curtain on an interesting year marked by surging inflation and high interest rates, it is also a good time to take stock of your investment portfolio.
It may be a good time to sell stocks that are underperforming with poor prospects while loading up on those with brighter futures.
Another New Year resolution could be to increase the level of dividends you receive.
To do so, you can invest in businesses that look poised to increase their dividends in 2024.
Here are four interesting stocks you can keep your eye on and include in your buy watchlist.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology (fintech) company that operates a platform for the buying and selling of unit trusts, stocks, and bonds.
The group reported a sparkling set of results for its third quarter 2023 (3Q 2023) back in late October.
For the first nine months of 2023 (9M 2023), net revenue rose 18.1% year on year to S$104.5 million.
Operating profit more than doubled year on year to S$20.3 million while net profit nearly tripled year on year to S$15.1 million.
The better results are due to the initial one-month contribution from iFAST’s Hong Kong ePension contract.
There could be more to come in 2024.
iFAST will continue to recognise revenue from the ongoing implementation of the eMPF system in Hong Kong and management expects revenue and profitability for 2024 to show “robust growth” compared with 2023.
CEO Lim Chung Chun also hinted at higher dividends next year as profits are expected to substantially increase.
The fintech’s assets under administration (AUA) also hit an all-time high of S$19.12 billion as of 30 September 2023.
The group is also readying the launch of ORSO ePension services which is expected to start making a sizable contribution to AUA from 1Q 2025 onwards.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company and offers services such as mobile, broadband, pay TV, and cybersecurity.
There was good news from the blue-chip telco as it reported higher underlying net profit and an increase in its interim dividend for its latest first-half fiscal 2024 (1H FY2024) earnings.
Underlying net profit came in at S$1.1 billion for 1H FY2024, up 12% year on year, while dividend per share increased from S$0.046 a year ago to S$0.052.
Singtel has an ongoing strategic reset that aims to simplify its business structure and carve out growth engines for the future.
Its recent Investor Day 2023 saw CEO Yuen Kuan Moon identifying several tailwinds that can help the telco grow further.
The group is targeting to generate a double-digit return on invested capital (ROIC) with 1H FY2024’s ROIC improving to 8.3%, up 1.5 percentage points year on year.
Investors could also enjoy higher dividends as the telco revised its dividend policy to be between 70% to 90% of underlying net profit, up from the previous range of 60% to 80%.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a leading real estate company with a network spanning 143 locations in 28 countries and regions.
The property group released a profit warning for 2023 stating that impairment losses for its UK properties and the absence of a significant divestment gain booked in 2022 will result in a substantial decrease in attributable profit for the current year.
However, these adjustments are non-cash in nature and CDL’s core operating earnings have not been significantly impacted.
Shares of CDL have fallen by around 21% year to date but this decline may present an opportunity for investors.
The group’s operational update for 3Q 2023 showed that it had four Singapore residential projects which sold more than 90% of their units.
Its office and retail portfolios in Singapore enjoyed committed occupancy of 97.8% and 97.7%, respectively.
During the quarter, CDL also commenced a S$50 million asset enhancement initiative for City Square Mall to add nearly 26,000 square feet of net lettable area.
Last month, the property giant expanded its UK living sector portfolio with the acquisition of 1NQ, a forward-funding private rental sector project in Manchester, for £75.6 million.
Singapore Post (SGX: S08)
Singapore Post, or SingPost, is Singapore’s sole postal service provider.
Like Singtel, the group has also announced a strategic review to assess its various businesses and to try to enhance shareholder returns by ensuring that the group is “appropriately valued”.
The strategic review is being finalised and could be announced together with SingPost’s fiscal 2024 earnings for the year ending 31 March 2024.
The group is not sitting still, though.
It recently expanded its integrated logistics network with the acquisition of Australian company Border Express for A$210 million.
SingPost is also executing strategies to transform into a global logistics enterprise.
It is eyeing more acquisitions and the potential divestment of non-core businesses or assets to recycle capital.
Meanwhile, international postage rates will also be adjusted upwards from 1 January 2024, providing a small boost to its Post and Parcel division.
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Disclosure: Royston Yang owns shares of iFAST Corporation Limited.
