Who doesn’t love dividends? Investors are always searching for companies that pay out consistent and regular dividends. The Singapore stock market has quite a number of these companies that I like to call “dividend dynamos” – companies that churn them out year after year.
Here are five companies that have been paying consistent dividends over the years and you’ll want to include them to take your portfolio to the next level.
VICOM Limited (SGX: V01), or VICOM for short, is a leading provider of technical testing and inspection services in Singapore. The company is a subsidiary of ComfortDelgro Corporation Limited (SGX: C52) and has a dominant market share in the vehicle inspection business. The company has a long history of paying dividends and its track record is clear from the below:
Based on VICOM’s FY 2018 full year dividend of 45.25 Singapore cents per share, and VICOM’s closing price of S$6.51 as of 15 May 2019, its historical dividend yield stands at 7%.
Valuetronics Holdings Limited
Valuetronics Holdings Limited (SGX: BN2), or Valuetronics for short, is an integrated electronics manufacturing services provider located in Hong Kong. It has two main divisions – consumer electronics (manufacturing products and components relating to end-user products such as electric shavers) and LED lighting, and industrial and commercial electronics (manufacturing parts for printers and cars). Based on Valuetronics’ latest presentation slides, investors should note that the company has been paying dividends for the last ten fiscal years, though the level fluctuated over the period during the global financial crisis.
The trailing 12-month dividend came to 5.21 Singapore cents (30 HK cents) and at the closing price of S$0.64 per share as of 15 May 2019, the historical dividend yield was 8.1%.
Boustead Singapore Limited
Boustead Singapore Limited (SGX: F9D) is one of Singapore’s oldest companies and was established in 1828. The group has four key divisions – energy-related engineering, real-estate solutions, geo-spatial technology, and healthcare, and has done work in more than 100 countries around the world. Due to the group’s conservative management and prudent allocation of resources, it has managed to maintain a strong balance sheet and generate healthy free cash flows yearly.
Based on the trailing 12-month dividend of 3.0 Singapore cents per share and the closing share price of S$0.785 as of 15 May 2019, the shares are trading at a dividend yield of 3.8%.
Straco Corporation Limited
Straco Corporation Limited (SGX: S85), or Straco for short, is an operator of tourism assets in both China and Singapore. The group owns 90% of the Singapore Flyer, a giant observation wheel located in Singapore, and two aquariums in China (in Shanghai and Xiamen). In addition, the group also owns a cable car service in China. Since Straco’s IPO in 2006, it has paid an annual dividend every year since. The chart below shows the gradual increase in Straco’s dividend per share all the way up till FY 2018.
At the last traded share price of S$0.785 as of 15 May 2019, Straco had an historical dividend yield of 4.5%.
Singapore Exchange Limited
Singapore Exchange Limited (SGX: S68), or SGX for short, is Singapore’s sole stock exchange operator. The group’s business is divided into three main business units: Equities and Fixed Income; Derivatives; and Market Data and Connectivity. The business has seen declining equities and fixed income volumes but this was offset by record derivatives trading volume and value. SGX has a long history of paying quarterly dividends and total dividends per year has also been rising steadily, as can be seen below.
Based on SGX’s trailing 12-month dividend of 30 Singapore cents per share, the company is providing a dividend yield of 4.1% at the last closing price of S$7.36 per share as of 15 May 2019.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Royston Yang owns shares in VICOM Limited, Singapore Exchange Limited, Straco Corporation Limited and Boustead Singapore Limited. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited, Straco Corporation Limited, VICOM Limited and Boustead Singapore Limited.