3 Stocks Paying Dividends in the Days Ahead

There are a few stocks that are slated to go ex-dividend in the upcoming days this week. In other words, you need to own them before the particular day in order to receive their dividends. Let’s take a look at three such stocks..

1. Thursday, 21 April 2016

On Thursday, Keppel Telecommunications & Transport Ltd (SGX: K11) will be going ex-dividend. The firm, which is a subsidiary of the conglomerate Keppel Corporation Limited  (SGX: BN4), offers integrated services and solutions in two areas: Logistics and Data Centres.

Keppel T&T will be paying a dividend of 3.5 Singapore cents per share for its fiscal fourth–quarter ended 31 December 2015.

For its fiscal year ended 31 December 2015, Keppel T&T saw its revenue and profit suffer year-on-year declines of 10.7% (to S$201 million) and 62.9% (to S$91.5 million), respectively. The main reason for the poor showing was the lack of one-off gains seen in 2014 when two data centre properties held by Keppel T&T were spun-off into Keppel DC REIT (SGX: AJBU).

Shares of Keppel T&T closed at a price of S$1.42 on Tuesday. It is now valued at 9 times trailing earnings and has a historical yield of 2.5% based on its dividend for 2015.

Keppel T&T had released its latest earnings (for the first-quarter of 2016) just last week. The firm experienced a low single-digit percentage increase in revenue, but saw its profit fall by 15%. It warned in the earnings release that its logistics divisions is facing challenges due to a slowdown in China and Southeast Asia.

2. Thursday, 21 April 2016

On the same day, Singapore’s second largest telecommunications firm, StarHub Ltd  (SGX: CC3), will be going ex-dividend.

The company is dishing out a dividend of 5.0 Singapore cents per share for its fiscal fourth-quarter (the three months ended 31 December 2015, similar to Keppel T&T).

It wasn’t the best of quarters for StarHub. In that period, the telco’s top-line slipped by 2.1% year-on-year to $634 million on the back of lower mobile revenue. There was a bigger hit to the bottom-line as net profit slumped by 14% to end at S$81 million. Despite the lower profit, StarHub’s dividend for the fourth-quarter and whole of 2015 is unchanged from that seen in the same periods in the previous year.

StarHub ended Tuesday’s trading session with a share price of S$3.36. This gives the company a trailing PE of 16 and a dividend yield of 6% (again, based on its dividend for its last completed fiscal year).

3. Friday, 22 April 2016

On the last working day of the week, Keppel Corporation will be going ex-dividend. The conglomerate, as many may know, has businesses in various sectors such as oil and gas, real estate, and infrastructure.

A dividend of S$0.22 per share for the fourth-quarter ended 31 December 2015 will be dished out by Keppel Corp.

The conglomerate has seen some tough times for its business lately. In 2015, revenue and profit fell by 22.5% and 19.1%, respectively. This was mostly due to the sharp decline in oil prices, which toppled from a high of more than US$100 per barrel in mid-2014 to less than US$40 per barrel at the end of 2015.

In the firm’s recently released earnings for the first-quarter of 2016, the pain continued – a 38% year-on-year plunge in revenue to S$1.7 billion was accompanied by a 42% haircut in profit to S$211 million. And again, a big culprit was the low price of oil, which has caused difficulties in the oil & gas sector.

Keppel Corporation’s shares closed at S$6.07 on Tuesday. At that price and with total dividends of S$0.34 per share in 2015, the conglomerate has a historical dividend yield of 5.7%. The firm is also carrying a PE ratio of 8.

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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 Sudhan P doesn’t own shares in any companies mentioned.