Dividends are always a welcome sight for an income investor.
However, some months will see more dividends paid out than other months because companies’ fiscal year-ends tend to cluster around December and March.
Hence, the bulk of dividends are usually received in May, June, and August.
Even though July is a relatively dry month for dividends, we managed to dig out these four stocks that will be dishing out dividends next month.
UMS Holdings (SGX: 558)
UMS provides equipment manufacturing and engineering services to original equipment manufacturers for semiconductors and related equipment.
The group also serves the electronics, machine tools, and oil and gas industries.
For the first quarter of 2024 (1Q 2024), UMS reported a downbeat set of earnings that were dragged down by the ongoing semiconductor sector downturn.
Revenue fell by a third year on year to S$54 million while net profit tumbled by 44% year on year to S$9.8 million.
The group generated a positive free cash flow of S$2.7 million, though this was nearly 84% lower than the S$16.6 million churned out a year ago.
Despite the weaker results and cash flow, UMS raised its interim dividend by 20% year on year to S$0.012.
This dividend will be paid out on 24 July.
The group’s key customers have provided upbeat guidance in the coming months and an existing customer plans to ramp up next-generation chip technologies critical to artificial intelligence (AI).
UMS has completed the construction of its 300,000-square-foot factory in Penang, Malaysia, and has commenced volume production of medium and large-format products for its new customer.
Kimly Ltd (SGX: 1D0)
Kimly is one of the largest traditional coffee shop operators in Singapore.
The group manages and operates a network of 86 food outlets and 172 food stalls along with 12 Tenderfresh and Tonkichi restaurants and four Tenderfresh kiosks.
Kimly released its first half of fiscal 2024 (1H FY2024) results ending 31 March 2024.
Revenue inched up 1.9% year on year to S$158.5 million, boosted by higher revenue contribution from outlet management and the food retail division.
However, net profit dipped by 0.9% year on year to S$16 million.
The coffee shop operator generated a positive free cash flow of S$37 million for the half year, up 16.7% year on year.
An interim dividend of S$0.01 was declared, sharply higher than the S$0.0056 paid out a year ago.
The dividend will be paid on 15 July.
Earlier this month, Kimly announced the purchase of a coffee shop property at Block 204 Serangoon Central for S$13.15 million.
The acquisition is in line with the group’s objective of expanding its network of food outlets in Singapore.
Meanwhile, Kimly’s fifth Tenderbest Makcik Tuckshop at Punggol Park opened in February 2024, representing an expansion of its Halal-certified food strategy.
Far East Orchard (SGX: O10)
Far East Orchard operates a lodging platform and has a track record in real estate development, investment, and management across residential, commercial, hospitality, and purpose-built student accommodation (PBSA) assets.
For 2023, the group saw revenue jump 30.3% year on year to S$183.6 million with its hospitality segment recording a better performance in line with the tourism recovery.
Net profit more than tripled year on year to S$66 million but this was mainly due to fair value gains on its investment properties.
A final dividend of S$0.04 was declared with the option to receive the dividend in either scrip or cash.
If cash is chosen, shareholders can expect to receive the dividend on 5 July.
Far East Orchard continued its momentum by reporting a robust performance for 1Q 2024.
Revenue rose 10.4% year on year to S$50.9 million, boosted by the PBSA segment.
Net profit surged 46.8% year on year to S$6.9 million.
Management will focus on strengthening the hospitality and PBSA platforms to scale them up for further expansion while exploring new recurring income streams or vertical acquisitions under its lodging platform.
Straits Trading Company (SGX: S20)
Straits Trading Company, or STC, is a conglomerate with operations and financial interests in resources, property, and hospitality.
These include stakes in Malaysia Smelting Corporation (SGX: NPW), ESR Group (SEHK: 1821), and Far East Hospitality Holdings.
STC reported a downbeat set of earnings as revenue from tin mining and smelting fell 10.1% year on year to S$424.8 million.
Coupled with higher losses from associates and increased finance costs, the conglomerate reported a net loss of S$28.6 million for 2023.
The group managed to eke out a positive free cash flow of S$28.7 million for the year.
An interim dividend of S$0.08 per share was declared, to be received in either scrip or cash.
The dividend is slated to be paid out on 2 July.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
