Receiving dividends directly into your bank account is guaranteed to make you happy.
But there is one thing even better – seeing the dividends from your stocks increase.
Armed with the same number of shares, you can see your stream of passive income rise steadily over time.
For this increase to happen, the company in question should enjoy higher profits and cash flows that will enable it to pay out more to its shareholders.
Here are five Singapore stocks that recently upped their dividends by an impressive 20% or higher.
UMS Holdings Limited (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products.
For the first quarter of 2024 (1Q 2024), the group saw its revenue tumble by a third year on year to S$54 million because of weak demand within the semiconductor sector.
Net profit plunged by 44% year on year to S$9.8 million.
However, UMS generated a positive free cash flow of S$2.7 million for 1Q 2024.
Despite the weaker results, the group upped its dividend by 20% year on year to S$0.012.
Looking ahead, management is confident of its prospects as the group added a new customer that will bring in more business.
UMS also completed its 300,000-square-foot factory in Penang for RM 250 million.
The new customer, a global chip giant, was impressed by this new facility and expressed the desire to deepen the business relationship.
According to SEMI, signs are pointing to a return to growth for the semiconductor industry with analysts projecting a 9% to 16% year on year increase in semiconductor global revenue.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates platforms such as FundSupermart and FSMOne for the buying and selling of unit trusts, shares, and bonds.
The fintech reported a sparkling set of earnings for 1Q 2024.
Total revenue jumped 59.4% year on year to S$86 million with continued contributions from iFAST’s Hong Kong ePension project as well as improvements in the group’s core wealth management platform business.
Operating profit catapulted more than fourfold year on year to S$18.5 million while net profit soared 387.4% year on year to S$14.5 million.
In line with the robust earnings, management declared an interim dividend of S$0.013, up 30% from the S$0.01 paid out a year ago.
The group’s assets under administration also hit a new record of S$21.05 billion, up 16% from S$18.14 billion in 1Q 2023.
Looking ahead, iFAST expects 2024’s revenue and profit to see robust growth compared to 2023.
Its iFAST Global Bank division is also expected to become an important growth driver in 2025 and beyond.
United Overseas Bank (SGX: U11)
United Overseas Bank, or UOB, is the third-largest bank in Singapore.
The lender reported a strong set of earnings for 2023 and raised its final dividend to S$0.85.
2023’s total dividend came up to S$1.70 per share, a 26% year-on-year increase from the S$1.35 paid last year.
Although UOB’s core net profit dipped slightly by 1% year on year to S$1.57 billion for 1Q 2024, the bank remains well-positioned to benefit from higher-for-longer interest rates.
CEO Wee Ee Cheong reported that the group’s Citigroup (NYSE: C) acquisition is proceeding well.
Integration is completed in Thailand, Malaysia, and Indonesia with Vietnam set to complete the integration by next year.
UOB expects low single-digit loan growth along with double-digit fee growth for 2024, with total income expected to see positive growth.
Singapore Post Limited (SGX: S08)
Singapore Post, or SingPost, is Singapore’s sole postal service provider.
The group is also an e-commerce logistics provider serving customers in more than 220 global destinations.
Although SingPost’s revenue declined from S$1.87 billion to S$1.69 billion for fiscal 2024 (FY2024) ending 31 March 2024, net profit shot up to S$81.5 million from S$38.8 million a year ago.
The increase in profit was because of an exceptional gain of S$36.8 million on property revaluation.
Excluding this, SingPost’s core net profit still improved by 28.1% year on year to S$41.5 million.
A final dividend of S$0.0056 was proposed, taking FY2024’s dividend to S$0.0074 for a 28% year-on-year increase.
Management will continue to execute the group’s strategic plans over the next three years that were unveiled at its recently announced strategic review.
These include selective divestments of non-core assets and achieving scale in Australia by finding suitable partners.
SingPost also plans to expand its cross-border networks and look for partners for its international business.
Singtel (SGX: Z74)
Singtel is Singapore’s largest telecommunication company and like SingPost, the blue-chip group also announced a mixed set of results.
Operating revenue dipped by 3% year on year to S$14.1 billion but net profit was impacted by an exceptional loss of S$1.47 billion that caused it to plunge 64% year on year to S$795 million.
Excluding this item, underlying net profit would have risen by 10% year on year to S$2.26 billion as the telco saw increased regional associate contributions and enjoyed higher interest income.
Free cash flow stayed fairly constant at S$2.6 billion for FY2024.
Singtel will pay a total of S$0.15 in dividends for FY2024, a sharp 52% year on year increase from FY2023’s S$0.099.
The higher dividend is partially funded by a new value realisation dividend from the proceeds of capital recycling initiatives by the group.
Looking ahead, Singtel also released a Singtel28 plan featuring value-creation initiatives that seek to improve both profits and dividends.
We’ve discovered 5 SGX stocks that not only offer better returns than fixed deposits but also have the potential to beat inflation. Plus, these stocks provide capital growth and can significantly compound your wealth in the long term. If you’re looking to make your money work harder for you, download our FREE report for details on these five stocks.
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Disclosure: Royston Yang owns shares of iFAST Corporation Limited.
