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These 3 Companies Raised Their Dividends In The Last Quarter

In a previous article here, we looked at three companies part of the Straits Times Index (SGX: ^STI) that have increased their dividends in the latest quarter. In this article, let’s look at three companies outside of the index which have rewarded shareholders with higher dividends.

Nordic Group Ltd (SGX: MR7)

Nordic is a supplier of services such as automation system integration solutions, vessel maintenance, repair and overhaul, and scaffolding and insulation, among others. The company mainly serves the marine, offshore oil and gas, petrochemical, pharmaceutical, infrastructure and public environment sectors.

For the second quarter ended 30 June 2018, Nordic saw its revenue rising 8% year-on-year to S$26.1 million with its net profit growing 17% to S$4.4 million. The top line growth was largely due to higher revenue from its Others segment from the sale of carbon allowances. The increase was offset by a fall in Project and Maintenance services revenues.

On a half-year basis, revenue increased by 11% to S$48.8 million while net profit climbed 19% to S$7.8 million.

Due to the higher profit for the first half of 2018, Nordic raised its interim dividend by 19% to 0.779 Singapore cent per share. A year ago, it paid out 0.653 cent. Nordic maintained its dividend payout ratio of 40% for both the dividend payments.

At Nordic’s share price of S$0.46 yesterday, it had a trailing price-to-earnings (PE) ratio of 11 and a trailing dividend yield of 3.6%.

SBS Transit Ltd (SGX: S61)

SBS Transit is a provider of bus and rail services in Singapore. Under the rail services business, the company operates the North East Line (NEL), the Downtown Line (DTL), and the Sengkang and Punggol Light Rapid Transit (SPLRT). As of 5 March 2018, ComfortDelGro Corporation Limited (SGX: C52), one of the largest land transport companies in the world, had a 74.6% stake in SBS Transit.

Revenue for SBS Transit’s 2018 second-quarter went north by 19.8% year-on-year to S$344.9 million. The growth was due to higher revenue from both its Public Transport Services segment and Other Commercial Services segment. Meanwhile, net profit surged 52.9% to S$19.4 million.

SBS Transit upped its interim dividend by around 60% to 5.80 Singapore cents per share. Last year, it dished out 3.65 cents.

SBS Transit shares ended Monday at S$2.60 apiece. The price translates to a trailing PE ratio of 13 and a trailing dividend yield of 3.8%.

VICOM Limited (SGX: V01)

VICOM provides technical testing and inspection services mainly in Singapore. It is also largely owned by ComfortDelGro. The land transport giant held 67.1% of VICOM, as of 5 March 2018.

Due to higher business volumes, VICOM’s top line for the second quarter inched up by 2.4% year-on-year to S$24.7 million. Net profit tracked up as well, growing 2.9% from S$6.1 million to S$6.2 million.

An interim dividend of 13.46 Singapore cents per share was declared, a 2.6% increase from 13.12 cents dished out last year.

At yesterday’s closing price of S$6.10, VICOM had a trailing PE ratio of 20 and a trailing dividend yield of 6.0%.

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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 Nordic Group Ltd, SBS Transit Ltd and VICOM Limited. Motley Fool Singapore contributor Sudhan P owns shares in SBS Transit Ltd and VICOM Limited.