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Three Shares With Bigger Dividends

The local share market is nearing the end of its latest earnings season and most companies have reported their results for Financial Year (FY) 2012. As it is with every reporting season, there will be shareholders who are rejoicing or despairing, depending on the fortunes of the companies they own. However, shareholders of the 3 companies shown in the table below will likely be laughing their way to the bank.

Companies Dividends Per Share, S$ Share Price Dividend Yield Current Price-Earnings Ratio
FY2011 FY2012 Growth
Supergroup (SGX: S10) 0.058 0.071 22.4% $3.80 1.87% 26.8
Raffles Medical Group (SGX: R01) 0.04 0.045 12.5% $3.41 1.32% 32.4
CSE Global (SGX: 544) 0.02 0.0425 112.5% $0.84 5.06% 7.7

The instant beverage maker, Supergroup, had a stellar year in 2012. The company’s yearly turnover increased by 18% to $519.3m while profit vaulted by 29% to $82.6m. The strong business results of the company led to management hiking dividends by 22.4% to thank shareholders for their loyal support. Shareholders might also be ‘bored’ by dividend hikes by now as Supergroup has increased its dividends for four years straight – dividends per share has grown almost five fold from 2008’s payout of $0.016.

2012 was a hot year for healthcare provider Raffles Medical Group as the company saw a 14.2% growth in full year sales to a record S$311.6m. Profits for shareholders also had a decent 13% increase to S$57.2m. Raffles Medical’s balance sheet is in the green of health with a net cash position of S$82.7m, a solid improvement over 2011’s S$55.1m. Shareholders in the company have also been rewarded with four years of consecutive dividend hikes, starting with 2008’s dividend per share of $0.025.

CSE Global rounds up the list today. 2012 was a massive turnaround year for the industrial automation and telecommunications technology provider as its full year profit, excluding one-time gains of S$9.2m, jumped by 69.6% to S$46.9m. 2011 was a difficult year for the company as its telecommunications projects incurred unexpected costs. In spite of the company’s 15.4% decrease in outstanding orders at the end of 2012 to S$384.5m, management remains confident of better performance in 2013.

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The Motley Fool’s purpose is to help the world invest, better.  The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Contributor Chong Ser Jing doesn’t own shares in any companies mentioned.