Dividend investors are constantly searching for companies that can sustain and grow their dividends over time. Such companies tend to be good companies that can grow their profits over time. One way to find these companies is to look for those that have a long-term dividend track record – more than 10 years.
But can we find them in Singapore? Well, the answer is yes! In fact, I’ll share with our readers one company that has paid a dividend for more than 15 years.
The company I’ll explore here is Singapore Exchange Limited (SGX: S68), or SGX for short. For those who have not heard about the company, it is the only stock exchange operator in Singapore.
SGX is a clear example of what dividend investors should look for in a dividend stock. It has been paying a dividend for more than 15 consecutive years now. In 2003, it paid a dividend per share (DPU) of 5.1 cents. Since then, it has since grown its dividend over the years to 30 cents in 2018. Though the growth in DPU has not been smooth, SGX has not missed any dividend payment over the last 15 years!
The growth in dividend is possible only if the company is able to grow its underlying revenue and profitability. So how did SGX perform financially during that period? Here are the numbers:
Source: SGX’s annual reports
From the above, we can see that SGX grew its top line and bottom line over the years. It is from the growth of its underlying business that the exchange grew its dividend payout over the period.
At its current price of S$7.39, SGX is trading at a trailing dividend yield of 4.1%.
From the above, we can see that SGX has sustained and grown its dividend over the last 15 years. Nevertheless, investors should be reminded that past performance is no promise of future returns. Thus, it’s important to carry out further research before investing in the stock.
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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 Singapore has recommended the shares of Singapore Exchange Limited.