As a firm economic recovery takes hold, more companies are reporting better revenue and profits.
With stronger demand for products and services as consumer sentiment improves, businesses are also enjoying better cash inflows.
And as these businesses enjoy the uplift, they are also paying out higher levels of dividends.
However, there’s only a small crop of companies that managed to pay out higher dividends compared to the pre-pandemic era.
Such stocks have attractive characteristics such as a strong competitive moat and can latch on to trends during the pandemic to keep their cash flow healthy.
That said, the question that investors should ask themselves is whether these payments can be sustained into the future.
Here are five stocks that paid out a dividend that exceeded their 2019 levels.
PropNex Ltd (SGX: OYY)
PropNex is Singapore’s largest real estate agency with more than 10,000 sales professionals.
The group provides a range of services such as property brokerage, training, and consultancy and is present in Singapore, Cambodia, Indonesia, Malaysia, and Vietnam.
PropNex reported a stellar set of earnings for fiscal 2021 (FY2021).
Revenue surged by 86.5% year on year to S$957.5 million while net profit more than doubled year on year to S$60 million.
The group paid out a total of S$0.125 in dividends for FY2021, which was nearly four times more than the S$0.035 that was paid in FY2019.
Moving forward, the group’s business may be negatively impacted by the Singapore government’s recent property cooling measures that sought to keep a lid on surging property prices.
UOB Kay Hian Holdings Ltd (SGX: U10)
UOB Kay Hian, or UOBKH, is one of Asia’s largest brokerage firms, backed by United Overseas Bank Ltd (SGX: U11).
The group has more than 80 branches worldwide and provides access to a wide range of securities such as equities, bonds, unit trusts, options and futures.
UOBKH reported a 6.7% increase in revenue to S$627 million for FY2021, driven by higher trading volumes in the US and Hong Kong but offset by lower Singapore trading volume.
Net profit, however, dipped by 4.3% year on year to S$153.8 million due to higher operating expenses.
The group did generate a positive free cash flow of S$61.4 million for FY2021, reversing the negative free cash flow of S$248.4 million in the prior year.
A first and final dividend of S$0.088 was declared for FY2021, more than double the S$0.042 paid out in FY2019.
Sheng Siong Group Ltd (SGX: OV8)
Sheng Siong operates one of the largest supermarket chains in Singapore with 64 outlets across the island.
The group offers more than 1,400 products under its 23 house brands and also sells an assortment of necessities, general merchandise, and fresh food.
For FY2021, revenue dipped by 1.7% year on year to S$1.37 billion as the pandemic-related surge in FY2020 took a breather.
Net profit fell by 4.3% year on year to S$133.1 million.
A total dividend of S$0.062 was declared for FY2021, higher than the S$0.0355 paid out in FY2019.
Sheng Siong secured three new leases in FY2021, and opened one new store last year, with two more stores to begin operations in the first half of this year.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates a platform for the buying and selling of unit trusts, shares, and bonds.
The group has enjoyed strong fund inflows of S$3.7 billion for FY2021, pushing its assets under administration to a new record high of S$19 billion as of 31 December 2021.
FY2021 saw iFAST’s net revenue grow by nearly 32% year on year to S$113.2 million while net profit jumped 44.8% year on year to S$30.6 million.
The fintech company paid out a total of S$0.048 in dividends for FY2021, higher than the S$0.0315 paid in FY2019.
iFAST recently purchased an 85% stake in BFC Bank, a UK digital bank, for S$73 million.
The acquisition was completed on 1 April and the bank has been renamed iFAST Global Bank.
AEM Holdings Ltd (SGX: AWX)
AEM provides comprehensive test solutions for the electronics and semiconductor industries.
The group has manufacturing plants in Singapore, Malaysia, China, and Finland and also has a network of sales offices around the world.
FY2021 saw revenue rise 9% year on year to S$565.5 million but operating profit dipped by 1% year on year due to higher selling and administrative expenses.
Net profit dipped by 6% year on year to S$92 million.
AEM paid out a total of S$0.076 in dividends for FY2021, higher than the S$0.051 that was paid out in FY2019.
The group expects FY2022 revenue to come in between S$670 million to S$720 million.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited.