For investors who follow the local stock market, you’ll know companies here are in the middle of Earnings Season, busy reporting their latest quarterly results. In particular, some companies have made announcements of dividend increases that might be music to the ears of income investors.
Let’s take a look at some of these shares that have bumped up their dividend payouts over the last two weeks.
Indiabulls Properties Investment Trust (SGX: F3EU)
Indiabulls Properties Investement Trust (IPIT) is a business trust that owns a total of five premium office buildings and residential properties in India as of March 2012. It is managed by the Indiabulls Group – an Indian conglomerate that produces power, provides financing and develops real-estate in India – under its Indiabulls Real Estate Limited arm.
The business trust declared a distribution of 0.0297 cents for its recently completed financial year, an improvement from last year’s zero-payout. The trust has a spotty history in making profits, and it was able to declare distributions to unit holders in only two out of its last five completed financial years.
Even though the trust seems to have turned its operations around to warrant some distribution payments, it’s good to note that its distribution yield of 0.3% (at the current unit price of $0.11) is a far cry from the market’s yield, represented by the Straits Times Index’s (SGX: ^STI) dividend yield of 2.9% at the end of April 2013.
Singtel (SGX: Z74)
Singapore’s largest company by market value has boosted its dividends yet again to $0.168 per share, a 6.3% increase from last year’s payout of $0.158. The telecommunications giant has a financial year that starts and ends on March and it has either maintained or increased its dividends (excluding special dividends) starting from at least March 2005.
SingTel had endured a difficult year with its latest full-year results, released on 15 May, showing a 12% drop in earnings for the year to S$3.51b. But, that did not stop the company’s management from continuing to reward shareholders with a fatter dividend check.
At a share price of $4.02, shares of SingTel are selling for 18 times earnings with a dividend yield of 4.2%.
Singapore Airlines (SGX: C6L)
Singapore’s flag ship airline posted a 13% increase in annual earnings to $378.9m from $335.9m a year ago for its latest full-year results. Along with the profit increase, shareholders were also greeted with a dividend of $0.23 per share, up 15% from last year’s $0.20 per share payout.
SIA has one of the best cost-controls in the business, even being up to 40% cheaper to run than budget carriers. But, in a reflection of the airline industry, the past two years weren’t kind to SIA based on a precipitous fall in profit from the $1.092b it earned in the financial year ending March 2011.
The airline’s currently trading at a lofty Price-Earnings ratio of 34 and sports a dividend yield of 2.1% at its current share price of $10.93.
SIA Engineering (SGX: S63)
The engineering-related company rounds up our list today and we’ve saved the best for last – SIA Engineering has the highest dividend yield among the four companies today at 4.4%. Its recent full year results saw it announce a dividend of $0.22 per share, 5% higher than last year’s payout of $0.21.
Given its name, it might not be that surprising to learn that SIA Engineering is actually a subsidiary of SIA. With its day-job of maintaining, repairing, and overhauling aircrafts for more than 80 airlines around the world, the company has steadily grown its profits over the years. It’s now earning $270.1m, almost double its profit of $139.9m ten years ago for the financial year ending on March 2004.
Along the way, shareholders have also been rewarded with bigger dividends. If we exclude special dividends, SIA Engineering has been bumping its dividends higher every year starting from March 2010.
SIA Engineering has a current share price of $5.04, representing a PE of 21.
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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.