As we approach the end of 2024, most companies have already reported their very last set of financial results for the year.
Investors should be carefully scrutinising these results to determine which stocks have the potential to do well in 2025.
Income investors, in particular, will be looking out for stocks that can either maintain or increase their dividends.
On that note, let’s take a deeper look at five stocks that are poised to dish out dividends in December.
First REIT (SGX: AW9U)
One of only two listed healthcare REITs in Singapore, First REIT’s portfolio comprises 32 properties including hospitals, nursing homes, and healthcare-related assets.
These properties have an appraised value of around S$1.1 billion and are spread out across Singapore (3), Japan (14), and Indonesia (15).
First REIT released its business update for the first nine months of 2024 (9M 2024) which saw a slightly downbeat set of earnings.
Total revenue fell by 5.3% year on year to S$77 million while net property income dipped by 6% year on year to S$74.4 million.
Distribution per unit (DPU) slipped 4.3% year on year to S$0.0178 for 9M 2024.
For the third quarter of 2024 (3Q 2024), First REIT declared a DPU of S$0.0058 which will be paid out on 20 December.
The REIT’s gearing ratio stood at 39.3% as of 30 September 2024 and it had an all-in cost of debt of 5%.
The manager intends to continue with First REIT’s 2.0 growth strategy by diversifying into developed markets, with developed markets making up more than half of the portfolio by 2027.
At the same time, the REIT will recycle capital from non-core or mature assets.
Singapore Post (SGX: S08)
Singapore Post is a postal and eCommerce logistics provider with more than 4,900 employees and offices in 13 markets worldwide.
Revenue for the first half of fiscal 2025 (1H FY2025) ending 30 September 2024 rose 20% year on year to S$992.4 million.
The group saw operating profit soar 63% year on year to S$51.2 million while underlying net profit shot up 87.6% year on year to S$25.2 million.
Unveiling its reorganised business segments for the first time, SingPost saw its Australian business post a robust financial performance with a 44.1% year-on-year jump in revenue to S$574.9 million.
The division also saw its operating profit climb 30% year on year to S$30.4 million.
SingPost declared an interim dividend of S$0.0034 that will be paid out on 2 December, and this dividend was 89% higher than the S$0.0018 paid out in 1H FY2024.
The group is in the process of finalising an operating model with the Singapore authorities to ensure the long-term viability of its postal services division.
Meanwhile, SingPost also disclosed that it is in exclusive discussions with a third party in relation to a possible sale of its Australian business.
SATS Ltd (SGX: S58)
SATS is a provider of air cargo handling services and a leading airline caterer.
The group also operates central kitchens with large-scale food production and distribution capabilities.
The blue-chip company reported a solid set of results for 1H FY2025 with revenue rising 14.8% year on year to S$2.8 billion.
Operating profit more than tripled year on year to S$240.1 million.
SATS reported a net profit of S$134.7 million for 1H FY2025, reversing the net loss of S$7.8 million in the prior year.
In light of the good performance, SATS declared an interim dividend of S$0.015 that will be paid on 6 December.
The group expects the positive momentum to continue in the next quarter as demand for travel and cargo hit its seasonal peak.
SATS will continue to improve its operational efficiency while introducing new product offerings.
Riverstone Holdings (SGX: AP4)
Riverstone is a manufacturer of nitrile and natural rubber gloves for the clean room industry and premium nitrile gloves for the healthcare and pharmaceutical industries.
The group operates six manufacturing facilities with an annual production capacity of 10.5 billion gloves.
The glove manufacturer reported an encouraging set of financial results for 3Q 2024.
Revenue climbed 34% year on year to RM 298.4 million while gross profit improved by 33.2% year on year to RM 103.6 million.
Net profit came in at RM 72.2 million for the quarter, up 21.8% year on year.
An interim dividend of RM 0.04 was declared and will be paid out on 6 December.
Together with the RM 0.08 of dividends already paid in the first half, the total dividends declared year-to-date amounts to RM 0.12.
New capacity is set to come on stream, with six clean room lines and three healthcare lines scheduled to be commissioned by the end of 2024.
An additional three healthcare lines should also be ready by 1Q 2025.
Valuetronics Holdings (SGX: BN2)
Valuetronics is an integrated electronics manufacturing services (EMS) provider.
The group has two manufacturing facilities located in China and Vietnam.
Valuetronics reported a mixed set of earnings for 1H FY2025.
Total revenue dipped by 3.3% year on year to HK$862.1 million, dragged down by a 17.6% year-on-year decline in revenue from Consumer Electronics division.
Gross profit, however, inched up 4.3% year on year to HK$144.8 million as gross margin improved from 15.6% to 16.8%.
Net profit climbed 10.2% year on year to HK$90.5 million.
An interim dividend of HK$0.04 and special dividend of HK$0.04 was declared, taking the total declared dividend per share to HK$0.08.
This dividend will be paid out on 6 December.
Looking ahead, Valuetronics intends to explore new opportunities with existing clients while steadily expanding its customer base.
To harness opportunities in the AI space, a 55%-owned joint venture (JV) was established with Sinnet Cloud HK Limited in June this year.
This JV provides graphics processing units (GPUs) and AI-related value-added cloud services in Hong Kong and installed 250 GPUs with ancillary hardware in September 2024.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
