Here Are 2 Stocks With Growing Dividends And A Dividend Yield Of Over 6%

I recently did a screen of Singapore’s stock market to find companies that have (1) been growing their dividends over their last three fiscal years and (2) dividend yields of over 6.4%.

For some perspective on the second criterion, the SPDR STI ETF (SGX: ES3) – an exchange-traded fund that tracks Singapore’s market barometer, the Straits Times Index (SGX: ^STI) – has a yield of 3.2% at the moment. So as you can see, a yield of 6.4% will be twice that of the market average.

Two companies that popped up are Mapletree Greater China Commercial Trust (SGX: RW0U) and Silverlake Axis Ltd (SGX: 5CP). Let’s have a few words about them.

MGCCT and Silverlake Axis dividend and yield table (2)
Source: S&P Global Market Intelligence and companies’ earnings releases

Mapletree Greater China Commercial Trust, or MGCCT for short, is technically not a company – it is a real estate investment trust. Right now, MGCCT has three properties in its portfolio, namely, Festival Walk (a retail mall with an office component in Beijing), Gateway Plaza (an office with a retail component in Beijing), and Sandhill Plaza (a business park in Shanghai).

The REIT’s latest financials (as of 30 June 2016) show that it has a gearing ratio of 35%, which is well below Singapore’s regulatory gearing limit of 45% for REITs.

Meanwhile, Silverlake Axis is in the business of developing technology solutions for banks, insurance companies, payment providers, and more. Its core capability is in providing banking solutions and over 40% of the top 20 largest banks in South-East Asia run the company’s core banking solution.

Based on its most recent earnings release (for the first-quarter of 2016), Silverlake Axis’s balance sheet has cash and short-term investments of RM202 million and total debt of just RM58 million.

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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 Ong Kai Kiat owns units of the SPDR STI ETF.