Dividends can be said to be an investor’s best friend.
Although dividends are discretionary, there are many businesses with a long track record of dishing out these payments.
You can rely on dividends as a passive source of income that can supplement your earned income.
And if you build and grow this stream of income over time through compounding, you can assure yourself of a comfortable retirement.
Here are five Singapore stocks that are poised to pay out dividends in October.
Civmec Limited (SGX: P9D)
Civmec is an integrated construction and engineering services provider to the energy, resources, infrastructure, and marine sectors.
The group has regional offices in Newcastle, Gladstone, and Port Hedland in Australia.
Civmec delivered an impressive performance for its fiscal 2024 (FY2024) ending 30 June 2024.
Revenue climbed 24.4% year on year to A$1 billion while net profit rose 11.6% year on year to A$64.4 million.
In line with the strong results, Civmec upped its final dividend by 16.7% year on year from A$0.03 to A$0.035.
This dividend will be paid out on 25 October.
The final dividend brings FY2024’s total dividend to A$0.06, 20% higher than the A$0.05 paid out in the previous fiscal year.
Civmec’s order book, however, dipped by almost 18% year on year to A$853.4 million.
Management believes the current pipeline of work is at a historical high with more than A$10 billion of opportunities being tracked outside of naval shipbuilding.
DFI Retail Group (SGX: D01)
DFI Retail Group is a pan-Asian retailer operating around 11,000 outlets and employing close to 200,000 staff.
The group has a number of well-known retail brands such as Giant, CS Fresh, 7-Eleven, Guardian Health & Beauty, and Mannings.
DFI Retail Group released an upbeat set of earnings for the first half of 2024 (1H 2024).
Although revenue dipped by 4% year on year to US$4.4 billion, the retailer’s underlying profit soared from US$8 million to US$95 million.
The group’s interim dividend jumped 17% year on year from US$0.03 to US$0.035.
This interim dividend will be paid on 16 October.
DFI Retail Group recently launched a Wellcome app and website in Hong Kong as part of its digital reset.
The retailer also expanded its quick commerce service in the Food and Convenient network to offer an omnichannel retail experience for customers.
Its yuu Rewards programme continues to do well with around three million monthly active members in Hong Kong and 1.7 million members in Singapore.
Riverstone Holdings (SGX: AP4)
Riverstone manufactures nitrile and natural rubber gloves for the semiconductor industry and premium nitrile gloves for the healthcare industry.
The group owns six manufacturing facilities in Malaysia, Thailand, and China with an annual production capacity of 10.5 billion gloves.
The glove producer reported a robust set of earnings for 1H 2024 with revenue rising 7.4% year on year to RM 496.4 million.
Gross profit surged by 55.2% year on year to RM 196.7 million as gross margin leapt from 27.4% to 39.6%.
Net profit climbed nearly 55% year on year to RM 144.7 million.
Riverstone also generated a positive free cash flow of RM 128.1 million for 1H 2024, 61% higher than the RM 79.5 million churned out a year ago.
The group proposed a second interim dividend of RM 0.04 which will be paid out on 4 October.
CEO Wong Teek Son is optimistic about the broad-based recovery in the global semiconductor sector with new production lines to be progressively commissioned by the end of this year.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.
SGX reported a commendable set of earnings for FY2024 with revenue inching up 3.1% year on year to S$1.2 billion.
Net profit, excluding exceptional and one-off items, rose 4.5% year on year to S$525.9 million.
The group proposed a final dividend of S$0.09 per share, up from S$0.085 previously.
This dividend will be paid out on 25 October.
SGX intends to strengthen the equities market development in Singapore and forge regional partnerships across ASEAN.
The blue-chip group will also look for growth opportunities for its foreign exchange (FX) franchise and look for clients across Europe and Asia Pacific.
UMS Integration Ltd (SGX: 558)
UMS Integration, formerly known as “UMS Holdings”, provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and related products.
The group has production facilities in Singapore, Malaysia, and the US.
UMS Integration reported a downbeat set of earnings for 1H 2024 as the semiconductor sector remained in the doldrums.
Revenue fell by 29% year on year to S$109.9 million.
Net profit tumbled 34% year on year to S$19.1 million.
The group declared an interim dividend of S$0.01, down slightly from the S$0.012 paid out a year ago.
This dividend will be paid on 25 October.
Andy Luong, Chairman and CEO of the group, was upbeat about UMS Integraton’s prospects.
The group’s diversification into the aerospace business helped to lift top and bottom lines while the recovery in the global semiconductor space is gaining momentum.
Its Penang facility was recently completed which boosted production capacity in time to capture higher demand from the global chip sector’s rebound.
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 does not own shares in any of the companies mentioned.
