Cash is the lifeblood of any business.
If a business generates consistent free cash flow and has ample cash on its balance sheet, it has more flexibility on how to deploy it.
If you’re an income-seeking investor, you should filter out such companies to include in your buy watchlist.
Dividends not only help to boost your passive income flow but also act as a tangible return on your investment.
And as the economy faces a possible slump, dividend-paying stocks can also help to weather your portfolio against a downturn.
Mapletree Pan Asia Commercial Trust (SGX: N2IU)
Mapletree Pan Asia Commercial Trust, or MPACT, is a retail and commercial REIT with 18 properties located in four countries.
These properties have a total net lettable area of 11 million square feet and are valued at S$17.1 billion as of 31 March 2022.
MPACT’s sponsor is Mapletree Investments Pte Ltd, a unit of Temasek Holdings.
The REIT reported a strong set of results for its fiscal 2023’s first half (1H2023) ending 30 September 2022.
Gross revenue jumped 44.9% year on year to S$353.2 million due to the merger of Mapletree Commercial Trust with Mapletree North Asia Commercial Trust.
Net property income (NPI) also increased by the same quantum to S$275.2 million.
MPACT’s distribution per unit (DPU) rose 12.5% year on year to S$0.0494, giving its units a forward distribution yield of 6%.
United Overseas Bank Ltd (SGX: U11)
United Overseas Bank, or UOB, is Singapore’s third-largest bank.
The lender reported a stellar set of earnings for its fiscal 2022’s third quarter (3Q2022).
Rising interest rates led to a 39% year on year jump in net interest income to S$2.2 billion for the quarter.
Net profit for the bank climbed 34% year on year to hit a record high of S$1.4 billion for 3Q2022.
UOB had paid out a S$0.60 interim dividend earlier this year and a final dividend of S$0.60 last year, bringing its trailing 12-month dividend to S$1.20.
At a share price of S$31, the bank’s shares offer a trailing dividend yield of 3.9%.
Looking ahead, interest rates look poised to rise further and will boost the bank’s net interest income heading into FY2023.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT that owns nine retail malls and an office building with assets under management (AUM) of around S$6.2 billion as of 30 September 2022 (FY2022).
FCT reported an upbeat set of earnings for FY2022, with gross revenue up 4.6% year on year to S$356.9 million.
NPI rose 4.9% year on year to S$258.6 million while DPU inched up 1.2% year on year to S$0.12227.
The retail REIT’s units offer a trailing distribution yield of 6%.
FCT has a strong sponsor in Frasers Property Limited (SGX: TQ5) and its suburban malls should also prove resilient during a downturn.
Venture Corporation Limited (SGX: V03)
Venture Corporation is a provider of technology products, services and solutions with a portfolio of more than 5,000 products and solutions.
For the first nine months of 2022 (9M2022), Venture reported a 28% year on year jump in revenue to S$2.8 billion.
Net profit climbed 25% year on year to S$271.7 million.
The group paid out a final dividend of S$0.50 in FY2021 and an interim dividend of S$0.25 for 1H2022, bringing its trailing 12-month dividend to S$0.75.
Shares of Venture Corporation provide a trailing dividend yield of 4.4%.
Looking ahead, the technology company warned that its science and technology market segments may come under pressure should geopolitical tensions and other headwinds persist.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-focused REIT with 11 shopping malls, five business park properties and four logistics park properties.
CLCT has a strong sponsor in CapitaLand Investment Limited (SGX: 9CI) and its portfolio is spread out across 12 Chinese cities.
The REIT reported continued high occupancy of 94% and above across all its assets for its 3Q2022 business update.
Gross revenue rose 7% year on year to RMB 1.4 billion while NPI improved by 7.5% year on year to RMB 970.8 million.
Both its retail and new economy assets also enjoyed positive rental reversion of 4.9% and 5.6% for 3Q2022, respectively.
CLCT paid out a trailing 12-month DPU of S$0.086, giving its units a trailing distribution yield of 7.7%.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.