The Singapore stock market has always been a great place for dividends.
Income-seeking investors not only have a wide choice of companies to select from but dividends are also exempted from taxation.
These factors allow income investors to build up a robust portfolio of dividend-paying stocks that generate a useful stream of passive income.
We highlight five promising dividend stocks paying out dividends in September that you can consider adding to your buy watchlist.
Boustead Singapore (SGX: F9D)
Boustead Singapore, or BSL, is a conglomerate with four divisions – energy engineering, real estate, geospatial technology, and healthcare.
The group reported a strong set of earnings for its fiscal 2024 (FY2024) ending 31 March 2024.
Revenue jumped 37% year on year to S$767.6 million with gross profit climbing 44% year on year to S$226.7 million.
Net profit increased by 42% year on year to S$64.2 million.
Stripping out one-off items, BSL’s core net profit would have doubled year on year to S$63.3 million.
The group also generated a positive free cash flow of S$91.8 million for FY2024.
A final dividend of S$0.04 was declared, taking the total dividend for FY2024 to S$0.055.
This final dividend will be paid on 27 September 2024.
BSL’s engineering order backlog stands at around S$247 million.
Its geospatial division’s deferred services backlog came in at a record high of S$129 million.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-based REIT with a portfolio of nine shopping malls, five business park properties, and four logistics park properties.
For the first half of 2024 (1H 2024), CLCT reported a downbeat performance that was attributed to higher interest rates and the weakness of the Renminbi against the Singapore Dollar.
Gross revenue dipped by 6.3% year on year to S$173 million while net property income fell by 8.7% year on year to S$117.9 million.
The distribution per unit declined by 19.5% year on year to S$0.0301 and will be paid out on 25 September 2024.
The REIT maintained a gearing ratio of 40.8% with an average cost of debt of 3.49%.
The portfolio is also more well-diversified now with the top 10 tenants making up 9.8% of gross rental income (GRI) as of 30 June 2024, down from 10.7% at the end of 2023.
The top tenant took up just 1.6% of GRI, down from 2.4% over the same period.
Delfi Ltd (SGX: P34)
Delfi manufactures and distributes branded consumer products in over 17 markets including Singapore, Malaysia, Indonesia, and the Philippines.
The group has an established portfolio of chocolate brands that include SilverQueen, Ceres, and Delfi.
For 1H 2024, Delfi saw revenue decline 7.8% year on year to US$260.8 million, led by a 10.7% year-on-year tumble in revenue for Indonesia.
Gross profit margin slipped just slightly from 29.2% to 28.8%.
Net profit tumbled by 22.3% year on year to US$19.6 million for 1H 2024.
An interim dividend of S$0.0272 was declared and will be paid on 12 September 2024.
Delfi expects uncertainty from geopolitical tensions and macroeconomic concerns that may strain supply chains and keep interest rates higher than expected.
These headwinds could negatively impact consumer demand for the remainder of 2024.
Delfi, however, is confident of mitigating these risks by engaging in brand-building efforts, growing its core strategic products, and driving growth in its premium category.
QAF Ltd (SGX: Q01)
QAF is a multi-industry food company with core businesses in bakery, distribution, and warehousing.
The group owns famous bread brands such as Gardenia and Bonjour and employs more than 9,000 people regionally.
1H 2024 saw revenue inch up 3% year on year to S$309.2 million.
With total costs increasing by just 1% year on year, QAF’s operating profit jumped 28% year on year to S$18.8 million.
Net profit more than doubled year on year to S$12.5 million.
QAF generated a positive free cash flow of S$9.8 million for 1H 2024.
An interim dividend of S$0.01 was declared, unchanged from a year ago.
This dividend will be paid on 26 September 2024.
Management continues to search for opportunities to expand its channels, develop new products, and adjust its product mix.
HRNetGroup Ltd (SGX: CHZ)
HRNetGroup is a leading staffing and recruitment firm with more than 900 consultants spread across 17 Asian cities.
The group owns recognisable brands such as HRNetOne, Recruit Express, and PeopleSearch.
HRNetGroup reported a weak set of earnings for 1H 2024 with both its divisions hit by the weak economy.
Revenue slipped by 3% year on year to S$285.9 million while gross profit fell by nearly 12% year on year to S$63 million.
Net profit tumbled 23.1% year on year to S$22.8 million.
The group maintained a clean balance sheet with S$246.8 million in cash with zero debt.
The business also generated a positive free cash flow of S$17.2 million for 1H 2024.
HRNetGroup maintained its interim dividend at S$0.0187 despite the lower profits.
This dividend will be paid on 11 September 2024.
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Disclosure: Royston Yang owns shares of Boustead Singapore and Delfi.
