3 Blue-Chip Companies Paying Dividends on Wednesday

There are three Straits Times Index (SGX: ^STI) constituents that will be going ex-dividend on Wednesday, 25 April 2018. In other words, you need to own the shares before that day to receive their dividends. Let’s take a look at them.

Company 1: Golden Agri-Resources Ltd (SGX: E5H)

Founded in 1996, Golden Agri-Resources is one of the largest palm oil plantation companies in the world. Its plantations are located in Indonesia and span more than 502,000 hectares.

The company is dishing out a dividend of 0.116 Singapore cents per share for the fourth quarter of 2017.

For the entire 2017, Golden Agri-Resources’ revenue increased by 4.1% to US$7.5 billion. But, its net profit plunged by 81.5% to US$74.0 million, primarily due to foreign exchange losses, an impairment loss on certain assets in China recognised in the fourth quarter of the year, and the absence of deferred tax income on revaluations recorded in 2016.

On the other hand, underlying profit, which removes the changes in the fair value of biological assets and depreciation of bearer plants, exceptional items and other non-operating items, jumped by 36.3% to US$253.8 million.

Golden Agri-Resources’ shares closed at a price of S$0.35 each yesterday. This gives the company a price-to-book ratio of 0.8 and a dividend yield of 2.3%.

Company 2: Keppel Corporation Limited (SGX: BN4)

Keppel Corp has four business divisions, namely, Offshore & Marine (O&M), Property, Infrastructure and Investments. The O&M division is one of the world’s largest oil rig builders.

The conglomerate is giving out 14.0 Singapore cents per share in dividend for the fourth quarter of 2017.

In 2017, Keppel Corp’s revenue tumbled by 11.9% to S$5.96 billion. Both the O&M and Property divisions posted lower revenues and the declines more than offset the top-line growth at the other two divisions.

The conglomerate’s net profit also fell, but by 72.4% to S$216.7 million, mainly due to a one-off penalty of S$618.7 million arising from Keppel O&M’s global resolution with criminal authorities and related expenses. Excluding the one-time items, the conglomerate would have achieved a net profit of around S$836 million in 2017, up 7% compared to 2016’s S$784 million.

Keppel Corporation closed yesterday’s trading share at a price of S$8.29 per share. This translates to a price-to-earnings (PE) ratio of 51 and a dividend yield of 2.7%.

Company 3: Sembcorp Industries Limited (SGX: U96)

Sembcorp Industries is another conglomerate and it has three primary business segments: Utilities, Marine and Urban Development. The Marine segment consists of Sembcorp Industries’ 61% ownership in Sembcorp Marine Ltd (SGX: S51), also one of the world’s largest oil rig builders.

Sembcorp Industries is paying out a dividend of 2.0 Singapore cents per share for last quarter of 2017.

The conglomerate had a mixed year in 2017. Although revenue increased by 5.5% to S$8.35 billion on the back of improvements in all business segments (except the Marine segment), its profit from operations declined by 13% to S$795 million, driven mainly by a weaker performance in the Marine segment. Net profit attributable to shareholders fared worse, as it declined by 41.6% to S$230.8 million.

Sembcorp Industries’ shares last changed hands at S$3.22 each yesterday. This gives a PE ratio of 31 and a dividend yield of 1.6%.

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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 owns shares in Sembcorp Industries Limited.