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These 6 Stocks Have Grown Their Dividends Over The Past 10 Years

Credit: Simon Cunningham

In a previous article I wrote a few weeks back, I looked at 10 companies that have consistently paid an annual dividend over their last 10 fiscal years.

Here’s a recap of the group of 10 stocks:

As a follow-up, I wanted to see which of the 10 had managed to grow their ordinary dividends at a compound annual growth rate (CAGR) of over 5%.  Turns out, there are six:  Singtel, Dairy Farm, StarHub, ST Engineering, Wilmar, and Comfortdelgro.

In the case of Singtel, it has hiked its dividend at a CAGR of 5.3% from S$0.11 per share in its fiscal year ended 31 March 2007 to S$0.175 per share in fiscal 2017. Dairy Farm’s dividend per share, meanwhile, has climbed by 8.75% per year from US$0.094 in 2006 to US$0.20 in 2015.

Next in line is StarHub, whose dividend of S$0.115 per share in 2006 has grown by 6.3% annually to S$0.20 per share in 2015. ST Engineering’s dividend of S$0.04 per share in 2006 has more than doubled to S$0.10 per share in 2015, giving rise to a CAGR of 10.7%.

Wilmar’s dividend has soared by 22.6% per year, from 0.9 US cents in 2006 to 5.6 US cents in 2015. Lastly, there’s Comfortdelgro. The company’s annual dividend-growth had logged in at 6.8% from 2006 (S$0.05) to 2015 (S$0.09).

Though the six companies did not grow their ordinary dividends in every single year (some years have even seen a fall in dividends), they’ve still managed to pay an annual dividend without fail over the past 10 years.

It’s also interesting to note that most of the six are in different industries but yet have a common theme: They provide non-discretionary products to consumers. For example, Singtel and StarHub are telecommunications services providers, Dairy Farm is a hypermarket and supermarket retail outfit, and Wilmar does packaged consumer products such as edible oils, rice, flour, grains, and noodles, along with producing palm  oil.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.