As the New Year rolls in, it is time to make resolutions for the investment goals you wish to achieve.
For income investors, a key focus will be to increase the dividends they receive from their investments.
Higher dividends not only help to defray inflation and the higher GST but can also act as a steady source of passive income upon your retirement.
Luckily, the Singapore stock market is not short of companies that dish out a dividend.
Here are four that look well-positioned to increase their payout this year.
DBS Group (SGX: D05)
DBS needs no introduction, being Singapore’s largest bank by market capitalisation.
The lender provides a comprehensive range of services to corporations and individuals including banking services, investments, and insurance.
The blue-chip group reported a stellar set of earnings for the third quarter of 2023 (3Q 2023).
For the first nine months of 2023 (9M 2023), total income jumped 27% year on year to S$15.2 billion.
Profit before allowances increased by 37% year on year to S$9.3 billion.
Net profit climbed 33% year on year to S$7.8 billion.
DBS paid out an interim dividend of S$0.48, 33% higher than the S$0.36 that was paid out a year ago.
There could be higher payouts from the bank this year as interest rates look set to stay higher for longer.
DBS completed the acquisition of Citigroup’s (NYSE: C) Taiwan consumer banking business back in August 2023, helping to accelerate DBS’s growth in the country by at least 10 years.
Recently, the group also raised its stake in privately-held Shenzhen Rural Commercial Bank from 13% to 16.69% in a transaction that will immediately add to earnings.
During its 2023 Investor Day, DBS communicated that it could increase its dividend by S$0.24 per year as a baseline, barring unforeseen circumstances.
Genting Singapore (SGX: G13)
Genting Singapore is the owner and operator of Resorts World Sentosa (RWS), an integrated resort (IR) that was opened in January 2010.
RWS features six hotels with around 1,600 rooms, a casino, an aquatic park, a Universal Studios theme park, and a variety of dining, entertainment, and retail options.
Genting Singapore reported a strong set of results for 3Q 2023 as borders reopened and the tourism industry flourished once again.
Total revenue for the quarter rose 33% year on year to S$689.9 million.
Net profit surged by 59% year on year to S$216.3 million.
When the IR operator reported its first half of 2023 earnings, it raised its interim dividend by 50% from S$0.01 to S$0.015.
With air travel set to return to pre-pandemic levels this year, RWS could see more visitors to its attractions.
There is a high chance the group could increase its final dividend when it reports its full-year earnings in February 2024.
Delfi Ltd (SGX: P34)
Delfi is a food and beverage manufacturer and distributor with a portfolio of established chocolate brands such as SilverQueen and Ceres that are sold in Indonesia.
The group also distributes a portfolio of well-known agency brands in Indonesia, Malaysia, and the Philippines.
Delfi reported an encouraging set of earnings for 3Q 2023 with revenue for 9M 2023 rising 15.2% year on year to US$412.6 million.
The chocolate producer reported a net profit of US$32.8 million for the same period, up 22.1% year on year.
The group also generated higher free cash flow of US$22.9 million for 9M 2023 versus US$14 million in the prior year.
Back in August, Delfi already raised its interim dividend from S$0.0218 to S$0.0273.
Should it continue its current trajectory, there is a high chance the chocolate maker will increase its final dividend.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology company that operates a platform (FSMOne) for the buying and selling of unit trusts, equities, and bonds.
The fintech reported a robust set of earnings for 3Q 2023.
9M 2023’s net revenue rose 18.1% year on year to S$104.5 million with operating profit more than doubling year on year to S$20.3 million.
Net profit nearly tripled year on year to S$15.1 million.
iFAST also enjoyed net inflows of S$1.6 billion for 9M 2023, lifting its assets under administration to a new high of S$19.12 billion as of 30 September 2023.
iFAST’s Hong Kong ePension division made its maiden one-month contribution to the group’s results in 3Q 2023, helping to lift net profit.
Looking ahead, 2024’s revenue and profitability are expected to show “robust growth” compared with 2023.
CEO Lim Chun Chung also mentioned that there is room for an increase in dividends with the group’s profits expected to rise substantially.
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Disclosure: Royston Yang owns shares of DBS Group, iFAST Corporation Limited and Delfi.
