It’s been an extremely tough environment for a wide swath of businesses during this pandemic.
Although the government has doled out four rounds of budget support measures, such as the Jobs Support Scheme, to prop up businesses, these schemes are tapering off very soon.
The pain could continue for many more months if the pandemic situation is not resolved by then with either a cure or a vaccine.
On the flip side, several industries and companies have done well despite the pandemic.
Reasons include anything from the provision of essential services to industries that are tasked to help cope with the effects of the pandemic.
Such businesses have been able to not only maintain their dividends but also raise them as business booms.
Here are four companies that recently raised their dividend payouts.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange.
The bourse operator also provides a range of other services such as listing, trading, settlement and clearing.
SGX recently released its full fiscal year 2020 earnings report.
Revenue hit a post-IPO record high of S$1.05 billion, up 16% year on year.
This stellar performance was driven by an increase in trading across a wide variety of SGX’s securities, as well as a strong interest in the suite of derivatives that asset managers use for portfolio management purposes.
Net profit jumped 21% year on year to S$472 million, and the group declared a final dividend of S$0.08 per share, a slight increase from the S$0.075 declared a year ago.
Moving forward, the annualised dividend per share for the fiscal year 2021 is set to be S$0.32, up 6.7% from the prior year.
Top Glove Corporation Berhad (SGX: BVA)
Top Glove Corporation Berhad is the world’s largest manufacturer of gloves. The group exports to more than 195 countries and has more than 2,000 customers worldwide.
As of 11 June 2020, Top Glove owns 45 glove factories with a total glove production capacity of 78.7 billion pieces per annum.
The pandemic has sharply increased the demand for rubber gloves that are used in the healthcare industry.
Monthly sales orders for the group went up by 180%, while utilisation rate for the group’s manufacturing plants rose from 85% to 95% in the latest quarter.
Glove demand has now risen from a pre-pandemic level of 8% to 10% per annum, to 12% to 15% per annum, and is expected to remain elevated post-crisis.
Top Glove’s latest quarter saw a stunning increase in net profit, more than quadrupling from RM 74.7 million to RM 348 million.
The group almost tripled its interim dividend from RM 0.035 to RM 0.10, and also declared a bonus issue of 2-for-1.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is Asia’s first pure-play data centre REIT.
As of 30 June 2020, its portfolio comprises 18 data centres located in 11 cities within eight countries, valued at S$2.8 billion.
The pandemic has accelerated the pace of adoption for digital services, and also pushed many people to increase the usage of the internet and cloud services due to lockdowns.
Data centres have been allowed to continue to operate as they are classified as “essential services“.
The REIT reported a nearly 30% year on year jump in gross revenue, while net property income increased by 32% year on year.
Distribution per unit increased by 13.6% year on year from S$0.0385 to S$0.04375.
At the last traded share price of S$3.03, the annualised forward dividend yield for the REIT stood at 2.9%.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong is one of the largest supermarket chains in Singapore.
The group operates a chain of 61 outlets around the island. These locations sell a variety of both fresh food and general merchandise ranging from fresh fish to toiletries.
The pandemic has led to a surge in customers buying groceries and essentials from Sheng Siong as more families work and study from home.
For the first half of 2020, the group’s revenue jumped by 52.7% year on year to S$747.4 million.
Net profit doubled from S$38 million to S$76 million during the same period, and the net profit margin expanded from 7.7% to 10.1%.
Sheng Siong declared an interim dividend of S$0.035, double of what it paid out during the same period last year.
Download your FREE special REITs report: “How You Can Make Money Investing In REITs During This Pandemic” HERE or in the box below!
We cover the pandemic’s impact on REITs in Singapore, and dive into the different sectors of Hospitality REITs, Retail REITs, Commercial REITs, Industrial REITs, Healthcare REITs.
Disclaimer: Chin Hui Leong owns shares in Singapore Exchange Limited, Sheng Siong Group Ltd and Keppel DC REIT.