Companies which increase their dividends signal to the market that they have good prospects. On that note, let’s look at the next three companies that have raised their dividends in 2018. For the first three companies, you can click here.
The fourth company on the list is HRnetGroup Ltd (SGX: CHZ). The firm is a prominent recruitment agency with operations in 13 Asian cities, including our city-state.
For its 2018 financial year, HRnetGroup raised its dividend to 2.8 Singapore cents per share, up 21.7% from 2.3 Singapore cents given out in 2017. The 2018 dividend represents a dividend payout ratio of 0.59.
The higher dividend comes on the back of HRnetGroup’s strong performance in 2018. For the year, the company’s turnover grew to a record high of S$428.5 million, increasing by 9.3% year-on-year. Meanwhile, its profit attributable to shareholders rose 16.6% to S$48.2 million.
At HRnetGroup’s current share price of S$0.805, it sports a trailing price-to-earnings (PE) ratio of around 17 and a trailing dividend yield of 3.5%.
Raffles Medical Group Ltd (SGX: BSL) is the next firm on my list. The company is an integrated private healthcare group based in Singapore.
In 2018, Raffles Medical Group raised its total dividend by some 11% to 2.5 Singapore cents per share, translating to a payout ratio of 0.63. In 2017, it gave out 2.25 Singapore cents to shareholders.
For the financial year ended 31 December 2018, the healthcare outfit’s top-line rose 2.4% year-on-year to S$489.1 million while its bottom-line inched up 0.4% to S$71.1 million.
Raffles Medical Group’s share price is now at S$1.11. At that price, it has a trailing PE ratio of around 28 and a trailing dividend yield of 2.3%.
The last company on my list is another healthcare provider, Singapore O&G Ltd (SGX: 1D8), which is involved in women and children private health-care services.
In 2018, Singapore O&G’s revenue improved by 16% year-on-year to S$34.68 million while its net profit climbed 7.5% to S$9.15 million. To know more about the company’s 2018 earnings, you can head here.
Together with the increased profitability, Singapore O&G delighted its shareholders with a higher dividend. The total dividend for 2018 amounted to 1.7 Singapore cents per share, an increase of around 13% compared to 2017’s total dividend of 1.5 Singapore cents. The 2018 dividend translates to a payout ratio of 0.89.
At Singapore O&G’s share price of S$0.35 now, it has a trailing PE ratio of around 18 and a trailing dividend yield of 4.9%.
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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 HRnetGroup, Raffles Medical Group and Singapore O&G. Motley Fool Singapore contributor Sudhan P owns shares in Raffles Medical Group.