Income investors focus on the dividends paid out by the companies they invest in.
This stream of passive income helps to supplement their earned income and can also be used for retirement.
However, with inflation rearing its ugly head, it’s not enough to just receive dividends – these dividends have to increase in line with inflation.
The great news is that stocks usually enjoy share price appreciation when they pay out higher dividends, as the business generates higher profitability to allow them to do so.
Investors will end up enjoying the best of both worlds when investing in such stocks, thus boosting their overall returns.
Here are four Singapore dividend gems that have steadily increased their dividends over the years.
Haw Par Corporation (SGX: H02)
Haw Par is a conglomerate with four key divisions – healthcare, leisure, property, and investments.
The group’s healthcare division manufactures, sells, and distributes the famous Tiger Balm brand of ointments and salves.
Haw Par has steadily increased its annual dividend over the years as the group generates copious levels of free cash flow.
Because of its strong balance sheet and burgeoning cash balance, Haw Par also periodically pays out special dividends.
The conglomerate’s annual dividend started off at S$0.20 back in 2010 and continued till 2018, when this dividend was increased to S$0.30 per year.
The group also paid out a special dividend of S$0.15 in 2015 and a special dividend of S$0.80 in 2018 to celebrate its 80th anniversary.
By 2023, Haw Par had increased its annual dividend further to S$0.40.
For 2024, revenue increased by 5.5% year on year to S$244.8 million while net profit grew 5.4% year on year to S$228.3 million.
The healthcare player maintained a robust balance sheet with S$745.8 million of cash and just S$36.3 million of debt.
For that year, Haw Par also declared a special dividend of S$1 per share.
Azeus Systems (SGX: BBW)
Azeus Systems distributes software products and services and delivers IT solutions to prominent organisations and government agencies in more than 100 countries.
The group’s flagship product, Convene, is a paperless meeting solution used by clients in more than 100 countries.
Azeus Systems saw its revenue and net profit improve strongly over the years as it recognised revenue from the Hong Kong Central Electronic Record Keeping System (CERKS) contract.
For fiscal 2021 (FY2021) ending 31 March 2021, the group paid out an annual dividend of HK$0.39.
The annual dividend more than quadrupled to HK$1.62 when the group reported a doubling of its net profit for FY2022 to HK$48.5 million.
FY2023 saw the annual dividend rise slightly to HK$1.68 as Azeus Systems reported a 4% year-on-year increase in net profit.
FY2024 saw another sharp jump in dividends to HK$2.80 per share when net profit surged 68% year on year to HK$85 million.
For FY2025, Azeus continued to see its net profit improve, leaping 96% year on year to HK$166.9 million.
Its total dividend for the fiscal year increased further to HK$5.50, nearly double that of the previous fiscal year.
iFAST Corporation Limited (SGX: AIY)
iFAST Corporation is a financial technology company operating a platform for the buying and selling of unit trusts, bonds, and equities.
The group has demonstrated strong growth in both revenue and net profit since 2021.
Revenue went from S$216.9 million in 2021 to S$383 million by 2024.
Net profit more than doubled from S$30.6 million to S$66.6 million over the same period.
iFAST’s dividend per share has also risen in tandem with its profits, going from S$0.048 in 2021 to S$0.059.
The group reported a commendable set of earnings for the first quarter of 2025 (1Q 2025).
Gross revenue increased by 24.4% year on year to S$106.9 million, while net profit jumped 31.2% year on year to S$19 million.
The group’s assets under administration hit a new record of S$25.68 billion, up 22% year on year.
An interim dividend of S$0.016 was declared, higher than the S$0.013 paid out a year ago.
iFAST expects to enjoy robust growth in revenue and profitability for 2025, and its dividend should also increase in line with its profits.
NetLink NBN Trust (SGX: CJLU)
NetLink NBN Trust designs, builds, owns, and operates the passive fibre network infrastructure for Singapore’s nationwide broadband network (NBN).
The group paid out a distribution per unit (DPU) of S$0.0505 back in FY2020, and this DPU increased to S$0.0508 a year later.
Over the years, NetLink NBN Trust has consistently posted higher DPU in a series of consecutive increases.
FY2022 saw DPU increase to S$0.0513, then to S$0.0524 in FY2023 and S$0.053 for FY2024.
For its latest FY2025 results, revenue dipped 1% year on year to S$407 million while net profit fell by 7.6% year on year to S$95.4 million.
However, cash available for distribution increased slightly by 1.2% year on year to S$208.9 million, resulting in DPU increasing once again by 1.1% year on year to S$0.0536.
The launch of Singapore’s Smart Nation 2.0 back in October last year marks a significant commitment by the government to secure Singapore’s digital future.
The growth of the NBN should result in attractive growth opportunities for the business trust, and its DPU should also rise in line with its fortunes.
Attention: Investors aiming for both growth and peace of mind. We’ve pinpointed 5 SGX stocks known for consistent dividends. If you want to build a retirement portfolio, but don’t want the stress of stock watching, this report is for you. Click HERE to download now.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of iFAST Corporation and NetLink NBN Trust.
