3 Stocks That Have Raised Their Dividends

It has been a rocky year for the stock market.

The Straits Times Index (SGX: ^STI) looks likely to shed 15% for 2015. But, there are positive developments in some companies, especially when it comes to dividends. In fact, a select few have even raised their dividends this year.

Without further ado, here are three such companies.

A triple shot of Singapore 

As oil prices head south, shares of Singapore Airlines Ltd (SGX: C6L) are taking off in a different direction – and it is not the only thing that is soaring. The aircraft operator doubled its interim dividend recently, offering 10 cents per share compared to the five cents it paid out a year ago.

But before rejoicing, we should note that Singapore Airlines has had a spotty track record when it comes to paying dividends. Singapore Airline’s free cash flow has also been volatile historically, given the difficult industry dynamics the airline has to operate in.

Exchange operator Singapore Exchange Limited (SGX: S68) has been handing out some festive joy as well – the company had upped its interim dividend by 20% from four cents per share a year ago to five cents in the current fiscal year.

Singapore Exchange is also committed to pay out annual dividends which are no less than 80% of its annual net profit or $0.20 per share, whichever is higher. We may want to cast a watchful eye on the company’s ability to continue growing its derivatives business segment though – it has been one of the key drivers of the company’s  revenue growth over the past year.

Like Singapore Airlines and Singapore Exchange, Singapore Post Limited (SGX: S08) also has the word “Singapore” featured as part of its name. The comparisons do not end there. Singapore Post had increased its interim dividend this year by 20% compared to the year before. The mail and logistics provider is further projecting a seven cents per share dividend for the full fiscal year.

Unfortunately, Singapore Post has also made the headlines for the wrong reasons recently. Its chief executive had resigned abruptly earlier this month and its corporate governance had been called into question by The Business Times.

Foolish takeaway

Dividend increases are nice to have, but as Foolish investors, we might want to dig a little further to understand if the increases that are given out are sustainable for the long haul.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.