Dividends can be said to be an investor’s best friend.
Not only do they put money directly in your bank account, but they also represent a tangible return on your investment.
The best part is – dividends act as a useful source of passive income that can either supplement your active income or replace it when you reach your retirement.
If you are an income investor looking for dividend-paying stocks, you are in luck.
Here are five Singapore companies that will dish out dividends in June.
Riverstone Holdings (SGX: AP4)
Riverstone manufactures nitrile and natural rubber cleanroom gloves used in the production of semiconductors and electronics as well as premium nitrile gloves used in the healthcare industry.
The group has six manufacturing facilities in Malaysia (4), Thailand (1), and China (1) with an annual production capacity of 10.5 billion gloves.
The glove manufacturer reported a strong set of earnings for the first quarter of 2024 (1Q 2024).
Revenue rose 4.8% year on year to RM 249.5 million with gross profit climbing 57.3% year on year to RM 97.5 million.
The group benefitted from a favourable product mix and lower costs.
Net profit for 1Q 2024 was 54.5% higher than the previous year at RM 72.2 million.
Riverstone also generated a positive free cash flow of RM 44.8 million, 19% higher than the previous year’s RM 37.6 million.
An interim dividend of RM 0.04 was declared and will be paid on 7 June.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, owns, and operates the passive fibre network infrastructure of Singapore’s Nationwide Broadband Network (NBN).
The group reported a resilient set of earnings for its fiscal 2024 (FY2024) ending 31 March 2024.
Revenue inched up 1.9% year on year to S$411.3 million because of higher residential connection revenue.
Net profit, however, fell by 5.5% year on year to S$103.2 million because of a one-off, non-cash write-off of decommissioned assets offset by a S$5.2 million refund for the resolution of disputed power charges.
Distribution per unit (DPU) edged up 1.1% year on year to S$0.053 and will be paid on 12 June.
The number of fibre connections continues to increase, with residential connections breaching 1.5 million in FY2024, up from 1.485 million in FY2023.
Non-residential connections also increased by 2.7% year on year to 53,500.
Singapore Technologies Engineering (SGX: S58)
Singapore Technologies Engineering, or STE, is a technology and engineering group serving businesses in the smart city, defence, aerospace, and public security sectors.
The blue-chip group has operations spanning the globe and serves customers in more than 100 countries.
For 1Q 2024, revenue for STE was 18% higher year on year at S$2.7 billion.
The engineering group clinched S$3 billion of new contracts during the quarter, bringing its order book to S$27.7 billion as of 31 March 2024.
An interim dividend of S$0.04 per share was declared which will be paid out on 5 June 2024.
Management believes that its digital business can triple to more than S$500 million by 2026 as it rides on the tailwinds of cloud computing, artificial intelligence analytics, and cybersecurity.
Fraser & Neave (SGX: F99)
Fraser & Neave, or F&N for short, is a food and beverage giant with a portfolio of renowned brands such as Magnolia and 100Plus.
The group is present in 11 countries and employs more than 7,200 worldwide.
F&N announced a strong set of earnings for the first half of fiscal 2024 (1H FY2024) ending 31 March 2024.
Revenue edged up 2.5% year on year to S$1.1 billion while net profit shot up 52.4% year on year to S$83.8 million.
The business also generated a positive free cash flow of S$100.3 million, 40% higher than the S$71.5 million churned out last year.
An interim dividend of S$0.015 was declared, unchanged from a year ago.
This dividend will be paid on 7 June.
F&N is strengthening its presence in Cambodia with a new dairy manufacturing facility.
Operations are slated to commence in the first quarter of 2026.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, is a commercial and industrial REIT with a portfolio of 112 properties spread across Singapore, Australia, the Netherlands, Germany, and the UK.
Its assets under management (AUM) stood at around S$6.8 billion as of 31 March 2024.
For 1H FY2024, revenue increased by 3.9% year on year to S$216 million.
The better performance was attributed to positive rent reversions and contributions from newly-completed properties Ellesmere Port, Connexion II, and Worcester.
Adjusted net property income rose 1.8% year on year to S$158.7 million.
DPU, however, slipped by 1.1% year on year to S$0.0348 because of an increase in finance costs arising from overall higher interest rates.
The DPU will be paid on 18 June.
FLCT’s portfolio enjoyed a positive rental reversion of 14.2% for its latest quarter and overall portfolio occupancy remained high at 94.3%.
Aggregate leverage was low at just 32.7% with the trailing 3-month cost of borrowing at 2.6%.
The REIT has a debt headroom of around S$851 million before it hits the 40% gearing level, giving it ample firepower to take on more debt for yield accretive acquisitions.
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 owns shares of NetLink NBN Trust and Frasers Logistics & Commercial Trust.
