The Motley Fool

3 Blue-Chip Companies That Have Raised Their Dividends In The Last Quarter

The earnings season is coming to the tail-end with the bulk of the companies having reported their financial results. Among the blue-chips of the Straits Times Index (SGX: ^STI), a handful of them have raised their dividends in the latest quarter. Let’s take a look at these companies.

Keppel Corporation Limited (SGX: BN4)

Keppel Corp is a conglomerate with four business divisions, namely, Offshore & Marine, Property, Infrastructure and Investments.

For the six months ended 30 June 2018, net profit came in at S$583.6 million, up 38% year-on-year from S$423 million reported a year ago. The improvement was due to stronger contributions from the Property and Infrastructure divisions, which were partially offset by losses incurred by the Offshore & Marine and Investments divisions.

The higher net profit was on the back of a 6.8% increase in overall revenue to S$2.99 billion. Revenues from Offshore & Marine and Property remained stable year-on-year while Infrastructure revenue surged 23%.

Loh Chin Hua, Keppel Corp’s chief executive, commented on the latest results:

“Keppel continued to deliver strong results in the first half of 2018. Our multi-business strategy and geographical diversification have enabled the Company to remain resilient, despite cyclical headwinds in some of our businesses.

Taking into account the Group’s better performance, including the improvement in our cash flow and net gearing, the Board has approved an interim dividend of 10.0 cents per share for 1H 2018, higher than the 8.0 cents per share for the first half of 2017. In addition, to thank shareholders for their trust and support on the occasion of Keppel Corporation’s 50th anniversary, we will be giving out a special dividend of 5.0 cents per share. The interim dividend and special dividend will be paid out to shareholders on 7 August 2018.”

At the closing price of S$6.66 yesterday, the conglomerate had a trailing price-to-earnings (PE) ratio of 33 and a trailing dividend yield of 3.6%. To know more about Keppel Corp’s dividends over the years, you can check out our dividend guide just hot off the press here.

Singapore Exchange Limited (SGX: S68)

Singapore Exchange is the only local stock market operator in Singapore. It provides listing, trading, clearing, settlement, depository and data services.

For the fourth quarter ended 30 June 2018, revenue rose 2.5% year-on-year to S$213 million, but net profit fell 1.8% to S$83.7 million. On a full year basis, the top line grew 5.5% to S$844.7 million while the bottom line increased by 6.9% to S$363.2 million.

A final dividend of S$0.15 per share was declared, a 15.4% increase from S$0.13 per share given out a year ago. The total dividend for 2018 was S$0.30 per share, an increase of 7.1% from S$0.28 per share one year ago.

Singapore Exchange shares ended Tuesday at S$7.40 apiece. The price translates to a PE ratio of 22 and a dividend yield of 4.1%.

Venture Corporation Ltd (SGX: V03)

Venture is a global electronics services provider that was founded in 1984. The company, which is headquartered in Singapore, is involved in designing, manufacturing, and e-fulfilment of high-mix, high-value, and sophisticated products.

Revenue for the second quarter, which is for the three months ended 30 June 2018, fell 6% to S$952.3 million but net profit climbed 40.2% to S$97.9 million.

Venture announced an interim dividend of 20 cents per share for the quarter. It did not pay any interim dividend last year. Typically, Venture only pays a final dividend in the fourth quarter. For the 2017 fourth-quarter, it dished out 60 cents in dividend, up from 50 cents a year ago.

Looking ahead, the company said the following in its second-quarter results announcement:

“While Venture has delivered a creditable 1H 2018 performance, some volatility may arise in the near term from customers’ M&A, new product/platform transitions and also from the possibility of escalation of trade war and component shortages. Venture and its partners have worked out various strategies to mitigate these issues.”

At yesterday’s closing price of S$18.70, Venture had a PE ratio of 13 and a dividend yield of 4.3%.

Both Singapore Exchange and Venture were also featured as top blue-chip stocks you can consider for your portfolio.

The Foolish takeaway

Apart from the above companies, the trio of banks – DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39) and United Overseas Bank Ltd (SGX: U11) – have also raised their dividends for their respective second quarters. Investors looking to invest in strong dividend-paying companies can use the above as a starting point for their own research.

Meanwhile, there are 28 surprising and important things we think every Singaporean investor should know—and we’ve laid them all out in The Motley Fool Singapore’s new e-book. Packed with information and insights, we believe this book will help you be a better, smarter investor. You can download the full e-book FREE of charge—simply click here now to claim your copy.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited, DBS Group Holdings Ltd and United Overseas Bank Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.