Dividend investors are constantly searching for companies that can sustain and grow their dividends over time. One way to find these companies is to look for those that have long-term dividend track record of more than 10 years.
But can we find them in Singapore? Well, the answer is a resounding “Yes”. In fact, we will share with our readers three Singapore companies that have paid dividend for more than 20 years. The first two companies can be found here and here respectively.
The final company that we have here is Haw Par Corporation Ltd (SGX: H02). As a quick introduction, Haw Par is the maker of the Tiger Balm brand of ointment. Other than its healthcare arm, it also has strategic stakes in UOL Group Limited (SGX: U14) and United Overseas Bank Ltd (SGX: U11).
Haw Par has been paying dividend for more than 20 years in a row. In 1998, it paid a dividend per share (DPU) of 8.1 cents. The company has since grown its dividend payout over the years to 115 cents (including an 85 cents special dividend) in 2018. In fact, excluding special dividend, Haw Par has never lowered its dividend payout over the last 20 years.
The growth in dividend is possible only if the company has grown its underlying revenue and profitability. So how did Haw Par perform financially during that period? Here’s the numbers:
Source: Haw Par’s annual reports
From the above, we can see that Haw Par grew both its top line and bottom line over years. It is from this growth that Haw Par was able to increase its dividend payout during the same time frame.
There you go, three companies that have consistently paid dividends for more than 20 years. From here, investors can carry out their own research to decide whether these three companies qualify as their investment candidates.
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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 Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for Haw Par Corporation Ltd and United Overseas Bank Ltd.