Time flies, and 2025 is almost upon us.
Income investors may be curious to know which stocks can continue to increase their dividend payouts as we head into the New Year.
A good way to find out is to determine if these businesses managed to grow their profits and dividends for this year.
And if their prospects are good, there is a high chance they can continue to increase their payouts.
Here are four Singapore stocks that we feel fairly confident can raise their dividends when 2025 comes along.
Yangzijiang Shipbuilding (SGX: BS6)
Yangzijiang Shipbuilding, or YZJ, is one of the largest non-state-owned shipbuilders in China.
The blue-chip group owns four shipyards that can produce a wide range of commercial vessels including large containerships, bulk carriers, and LNG carriers.
For 2023, YZJ upped its final dividend from S$0.05 to S$0.065 on the back of strong financial results.
Back then, revenue rose 16.5% year on year to RMB 24.1 billion while net profit surged by 57% year on year to RMB 4.1 billion.
The shipbuilder has continued the momentum this year when it released its first half of 2024 (1H 2024) earnings.
Revenue increased by 15.3% year on year to RMB 13 billion while net profit soared 77.2% year on year to RMB 3.1 billion, a record high.
YZJ’s third quarter of 2024 (3Q 2024) business update showed strong numbers as well.
Its order book jumped to US$22.1 billion as of 7 November, sharply higher than the US$14.4 billion at the end of last year.
In terms of order wins, the board announced early this month that the group snagged shipbuilding contracts for another 21 vessels with a total contract value of US$2.6 billion.
These contracts are scheduled for deliveries between 2027 and 2029.
Year-to-date, the group has secured a total of 119 contracts with a total value of US$14.27 billion, which is more than triple its initial US$4.5 billion target for 2024.
Based on the growth of YZJ’s order book and its stellar results, we believe the shipbuilder is in a great position to further increase its final dividend for 2024.
Grand Banks Yachts (SGX: G50)
Grand Banks Yachts, or GBY, is a manufacturer of luxury recreational motor yachts under the Grand Banks, Eastbay, and Palm Beach brands.
The group owns a manufacturing yard at Pasir Gudang, Johor, and has service yards located in Florida, the US, and New South Wales in Australia.
The yacht manufacturer reported a stellar set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.
Revenue rose 17.1% year on year to S$133.7 million with gross profit improving by nearly 38% year on year to S$50.7 million as gross margins expanded.
Net profit more than doubled year on year to S$21.4 million.
A final dividend of S$0.01 was declared, unchanged from a year ago. But FY2024 also saw the declaration of an interim dividend of S$0.005.
Coupled with the final dividend, FY2024’s dividend added up to S$0.015, 50% higher than the prior year’s S$0.01.
GBY’s first quarter of fiscal 2025 (1Q FY2025) saw strong results too.
Revenue increased by 29.1% year on year to S$40 million while net profit leapt 95% year on year to S$5.4 million.
Should the yacht maker continue this streak of good performance, it can likely continue to raise its dividend for FY2025.
Riverstone Holdings (SGX: AP4)
Riverstone manufactures nitrile and natural rubber cleanroom gloves for highly-controlled environments and the healthcare industry.
The group has six manufacturing facilities in Malaysia (4), Thailand (1) and China (1) that can produce 10.5 billion gloves per year.
Riverstone reported a strong set of financial results for the first nine months of this year (9M 2024).
Revenue rose 16% year on year to RM 794.8 million while gross profit shot up 46.8% year on year to RM 300.3 million.
Net profit stood at RM 216.9 million, up nearly 42% year on year.
The glove maker declared an interim dividend of RM 0.04 for 3Q 2024, bringing the total dividend declared year-to-date to RM 0.12.
The year-to-date dividend is higher than the prior year’s dividend of RM 0.10.
Riverstone is on track to increase capacity for six new cleanroom production lines to cater to growing demand from the semiconductor and electronics industries.
The group also expects an additional three new healthcare lines to be commissioned by 1Q 2025.
Grand Venture Technology (SGX: JLB)
Grand Venture Technology, or GVT, is a solutions and services provider for the manufacture of complex precision machining, sheet metal components, and mechatronic modules.
GVT’s customers come from the semiconductor, medical, aerospace, and electronics sectors.
For 2023, the group reported a lacklustre set of earnings with revenue falling 15.1% year on year to S$111.3 million.
Net profit plunged 58.4% year on year to S$5.5 million, resulting in the group slashing its final dividend from S$0.003 to S$0.001.
Things are looking up for 2024, though.
For 9M 2024, revenue climbed 35.8% year on year to S$111.9 million as GVT’s three divisions all posted year-on-year revenue growth.
Net profit increased by 33.5% year on year to S$6.3 million.
If GVT can keep up this momentum, there is a high chance that the group can declare a higher dividend than what was paid out for 2023.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
