Some investors rely on dividends to fund their lifestyle. As such, those investors may want to invest in companies that dish out a dividend every quarter for a regular income stream. With that, here’s a deeper look at three solid Singapore businesses paying quarterly dividends that might entice dividend investors.
Banking on dividends
The first company on the list is Singapore’s largest bank, DBS Group Holdings Ltd (SGX: D05). DBS has increased its dividend from S$0.58 per share in 2014 to S$1.20 per share in 2018.
In its 2019 first-quarter earnings report, DBS said that it would start paying dividends every quarter to provide “shareholders with more regular income streams”, instead of biannually previously. The S$1.20 per share dividend will now be broken up into four equal parts of S$0.30 each. DBS added that its “policy of paying sustainable dividends that rise progressively with earnings remains unchanged.”
At DBS’s current share price of S$26.10, it has a dividend yield of 4.6%.
A toll-gate for shares
Singapore Exchange Limited (SGX: S68) is the next business to be featured. The only stock market operator in Singapore raised its dividend from S$0.28 per share in FY2014 (fiscal year ended 30 June 2014) to S$0.30 per share in FY2018.
In the first quarter of FY2019, SGX started a new dividend policy of paying a dividend of S$0.075 per share, per quarter, translating to a total annual dividend of S$0.30 per share. SGX said that it aims to “pay a sustainable and growing dividend over time, consistent with the company’s long-term growth prospects.”
SGX has been paying growing dividends over the long-term, as seen from the following chart dating back to FY2001:Source: SGX investor relations website
SGX’s current share price is at S$7.33. At that price, it has a dividend yield of 4.1%.
In the fast lane
The third company on my list is iFAST Corporation (SGX: AIY), which was listed in December 2014. From 2015 to 2018, iFAST’s dividend has grown from S$0.0279 per share to S$0.0315 per share.
In the first quarter of 2019, the company declared an interim dividend of S$0.0075 per share, similar to a year ago. In 2018, iFAST paid out a dividend of S$0.0075 per share for the first three quarters and a dividend of S$0.0090 per share in the fourth quarter, totalling S$0.0315 per share for the full year.
iFAST’s dividends can rise faster in the years to come if it can deliver its assets-under-administration (AUA) target of S$100 billion by the end of 2028. Even though the targeted AUA is more than 12 times iFAST’s current AUA, the company believes the goal is achievable thanks to the “tremendous size of Asia’s wealth management industry and robust growth potential for a scalable fintech platform.”
At iFAST’s current share price of S$1.10, it has a dividend yield of 2.9%.
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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 DBS, Singapore Exchange and iFAST. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange and iFAST.