Here Are 5 Singapore Shares That Have Paid Consistent Dividends for 20 Years

Credit: Simon Cunningham

Earlier today, I was reading some investing articles online and found a really interesting piece on our sister-site at that talked about a group of U.S.-listed companies which have been paying dividends consistently for the past 100 years.

After reading that, I was curious to find out if there are any companies listed in Singapore which would fall into the mold of being a consistent payer of dividends. As Singapore’s stock market has a much shorter history when compared with the U.S., there’s no practical significance at all in trying to find companies with a 100-year history of paying dividends.

So, I decided to limit myself to a 20-year timeframe for my study. In other words, I want to find out which are the Singapore-listed companies that have been paying an uninterrupted annual dividend since 1995.

Turns out, there were a handful. Here are five from the list: Shangri-La Asia Ltd (SGX: S07), COSCO Corporation (Singapore) (SGX: F83), GK Goh Holding Ltd (SGX: G41), Jardine Cycle & Carriage Limited (SGX: C07), and Jardine Matheson Holdings Limited (SGX: J36).

Chart of long-term dividend payers

Souce: S&P Capital IQ

Can we expect their dividends to continue over the next 10 years?

The fallen stars

Shangri-La Asia and Cosco have managed to pay an annual dividend without fail over the past 20 years. That by itself is an amazing achievement.

But, when compared with the other three shares, both Shangri-La Asia and Cosco have fallen short because of their shrinking dividends. In particular, the decline in Cosco’s dividends have been especially drastic since 2010.

Such developments do cast some doubt on whether Shangri-La Asia and Cosco’s future dividends are sustainable.

The growing payout stars

The other three companies in our list have not just been consistently paying an annual dividend – they’ve also managed to increase their payouts over time.

GK Goh is a small investment holding outfit and it has been able to grow its dividends from 2 Singapore cents per share in 1995 to some 4 cents per share in 2014. The company’s well-known for being large shareholders of two other Singapore-listed firms, Boardroom Limited (SGX: B10) and euNetworks Group Ltd (SGX: 5VT).

GK Goh also has a strong balance sheet and has displayed disciplined-prudence in its investment activities – these two factors may just help support the company’s future dividends.

The last two in the list, Jardine Cycle & Carriage and Jardine Matheson, have been impressive dividend shares over the past 20 years.

From 1995 to 2014, the former has seen its dividends grow from S$0.32 per share to some S$1.126 per share. Meanwhile, the latter’s dividends have increased from S$0.35 per share to S$1.92 per share over the same timeframe.

With both companies being bona-fide conglomerates with diversified business interests and leadership positions in many of their markets, their futures do seem bright.

Foolish Summary

It is certainly an achievement for a company to be able to consistently pay annual dividends over a 20-year period.

But, investors will have to dig deeper into those five companies above before any investing decision can be reached. After all, a company’s past performance is never a guarantee for its future.

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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 writer Stanley Lim doesn't own shares in any company mentioned.