MENU

These 3 Shares May Be Able To Reward Investors with Rock-Solid Dividends

The Great Financial Crisis of 2007-09 was a truly devastating time.

Singapore’s economy fell by 0.6% in 2009 after enjoying years of uninterrupted growth since 2002. The stock market was also torn to shreds, with the SPDR STI ETF (SGX: ES3) – an exchange-traded fund tracking Singapore’s market benchmark, the Straits Times Index (SGX: ^STI) – nose-diving by more than 60% from peak-to-trough.

But out of all that misery came something truly valuable: Data. More specifically, it’s data about how the different companies in Singapore had handled the crisis. This can be very beneficial information to have for investors of all stripes.

For instance, if you’re an income investor who has a focus on shares that pay a dividend, it’s important to have a good handle on how stable a company’s dividend can be in the future. And, if a company could handle the Great Financial Crisis without a sweat and either grow or maintain its dividend throughout that period, then it’s a sign that the firm’s business may just be strong enough to handle even the toughest of times in the future.

So, are there such shares in Singapore? Fortunately there are and here are three of them: Hongkong Land Holdings Limited (SGX: H78), Second Chance Properties Ltd (SGX: 528), and Straco Corporation Ltd (SGX: S85)

The following’s a table showing their track record:

Dividend track record for Hongkong Land, Second Chance, and Straco

Source: S&P Capital IQ

Now, these shares are by no means a sure bet.

For instance, Second Chance Properties has seen its shares fall by 26% over the last six months after releasing poor earnings results; in the six months ended 28 February 2015 (the first half of Second Chance’s fiscal year ending 31 August 2015), the company’s revenue and profit had declined by 4% and 36% year over year, respectively. It remains to be seen if management’s able to pull the company out of its current funk.

Nonetheless, the three shares mentioned above have all had an admirable track record in growing or maintaining their dividends even throughout the extremely trying financial crisis period.

For this reason alone, the trio would be great candidates for further research for investors who’re out looking for shares that are capable of dishing out rock-solid dividends in the years ahead.

For more analyses on dividend investing and important updates about the stock market, sign up to The Motley Fool Singapore's free weekly investing newsletter, Take Stock Singapore. Written by David Kuo, it can help you grow your wealth in the years ahead.

Like us on Facebook to follow our latest hot articles.

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 writer Chong Ser Jing owns shares in Second Chance Properties and Straco Corporation.