If you are hungry for dividends, you should pay attention to the following three dividend-paying companies. They have the potential to roll more dividends into your bank account for years to come.
Jardine Matheson Holdings Limited (SGX: J36) is the first company to be featured. Jardine Matheson oversees a portfolio of market-leading businesses, supporting their long-term development in the process.
In the last five years, the conglomerate’s dividend per share has climbed consistently at a rate of 3.4% annually, from US$1.40 in 2013 to US$1.60 in 2017. Jardine Matheson’s dividend payout ratio in terms of its underlying earnings per share was a conservative 38% in 2017. The relatively low payout ratio gives the company ample headroom to grow its dividends. In the first half of 2018, Jardine Matheson increased its interim dividend per share by 5% to US$0.42.
At Jardine Matheson’s current share price of US$66.22, it has a trailing dividend yield of 2.4%. The current dividend yield may not look high, but it has the potential to increase in the future.
The next company in line is Nordic Group Ltd (SGX: MR7), which provides automation system integration solutions, vessel maintenance, repair and overhaul (MRO), and precision engineering, among others.
For the past five years, Nordic’s dividend per share has climbed from S$0.0025 in 2013 to S$0.01526 in 2017, giving an annualised growth of a whopping 57.2%. The dividends are also well-covered; the dividend payout in terms of earnings per share was 39% in 2017. For the first six months of 2018, Nordic upped its interim dividend by 19% to S$0.00779 per share.
At Nordic’s current share price of S$0.395, it has a trailing dividend yield of 4.2%.
The last company to be featured is Singapore Exchange Limited (SGX: S68), or SGX in short. The company is the only stock market operator in Singapore, and it provides listing, trading, clearing, settlement, depository, and data services.
SGX’s dividend has grown from S$0.28 per share in its fiscal year ended 30 June 2014 (FY2014) to S$0.30 per share in FY2018, which translates to an annual growth rate of 1.7%. In FY2018, the bourse operator paid out 88% of its net profit as dividends. To know more about SGX’s dividends, such as its dividend policy and dividend sustainability, you can check out the article here.
At SGX’s current share price of S$7.05, it has a dividend yield of 4.3%, based on its FY2018 dividend.
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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 and Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.