Dividends are a discretionary form of payment from a company to its shareholders as a way to distribute part of its profits.
Although a business is not obligated to pay a dividend, those that boast a long track record of doing so are more likely to keep up the practice.
Income-seeking investors who are looking for reliable dividend stocks should observe the company’s dividend payment history.
Stocks that have paid dividends for a decade or more are a rare breed and should qualify to be on your buy watchlist.
Here are five Singapore dividend stocks that have done so.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
The group has evolved over the years into a multi-asset exchange that allows buyers and sellers to transact in stocks, bonds, foreign exchange, derivatives and exchange-traded funds (ETFs) on its platform.
The bourse operator has been paying out a dividend since its fiscal year 2001 (FY2001) and has been paying out steady dividends for an impressive 21 years.
The dividend per share started at S$0.055 in FY2001 and has increased to S$0.32 for FY2022.
SGX reported a steady set of earnings for FY2022, with revenue rising 4% year on year to a record high of S$1.1 billion.
Net profit inched up 1% year on year to S$451 million.
Looking ahead, the group believes that its over-the-counter (OTC) foreign exchange platform can contribute more meaningfully to revenue.
SGX also has a strong listing pipeline, has seen larger debt capital raised and enjoyed a boost in ETF assets under management for FY2022.
VICOM Limited (SGX: WJP)
VICOM provides test and inspection services for vehicles and also in the fields of mechanical, biochemical, and civil engineering.
The group paid out an annual dividend of S$0.0385 in FY2007, and its dividend has steadily increased since then.
VICOM’s trailing 12-month dividend stands at S$0.0856, giving its shares a trailing dividend yield of 4.2%.
The test and inspection specialist reported a good set of numbers for its fiscal 2022’s first half (1H2022).
Revenue rose 8.5% year on year to S$53.3 million while net profit increased by 9.2% year on year to S$13.1 million.
CEO Sim Wing Yew remarked that demand for VICOM’s non-vehicle testing services is improving, while demand for vehicle inspection is expected to remain stable.
Haw Par Corporation Limited (SGX: H02)
Haw Par is a conglomerate with four business divisions – healthcare, leisure, property, and investments.
Its healthcare section is helmed by the famous Tiger Balm brand that sells a variety of ointments, pain patches, and salves.
The group has been a consistent dividend payer for more than a decade.
The dividend per share stood at S$0.20 in FY2010 but has since increased to S$0.30 in FY2021.
Haw Par is seeing a sharp rebound in its fortunes for 1H2022.
Revenue jumped 45.1% year on year to S$95.5 million with gross profit climbing 50.7% year on year to S$51.9 million.
Net profit increased by 45.8% year on year to S$77.2 million and the group maintained its S$0.15 interim dividend.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD)
Micro-Mechanics (Holdings), or MMH, designs and manufactures tools and parts used in the wafer fabrication and assembly processes for semiconductor clients.
The group has paid out an increasing level of dividends since its listing in FY2003.
The annual dividend back then stood at S$0.008 but has since increased to S$0.14 for FY2022.
MMH reported a respectable set of earnings for FY2022, with revenue rising 11.8% year on year to S$82.5 million.
Net profit improved by 9.7% year on year to S$19.8 million.
Looking ahead, the World Semiconductor Trade Statistics is forecasting a 5.1% year on year growth in the global semiconductor market to US$680 billion next year.
This should bode well for MMH’s business and its ability to continue dishing out its dividends.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is a conglomerate with four core divisions – energy-related engineering, real estate solutions, geospatial technology, and healthcare.
The engineering group has been a reliable payer of dividends since FY2003.
The annual dividend stood at just S$0.0075 in FY2003 but has steadily increased to S$0.04 for FY2022.
BSL kept its FY2022 dividend constant despite reporting a 28% year on year fall in net profit (excluding one-off items).
Recently, Boustead’s real estate subsidiary, Boustead Projects Limited (SGX: AVM), clinched a record contract of around S$300 million to design and build an integrated manufacturing, logistics and office facility in Singapore.
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Disclaimer: Royston Yang owns shares of VICOM, Singapore Exchange Limited, Micro-Mechanics (Holdings), Boustead Projects Limited and Boustead Singapore Limited.
