I like to source for investment ideas by looking at companies that are going ex-dividend. “Ex-dividend” means that you need to own the company’s shares before a particular date (the ex-dividend date) if you want to receive their dividend. In the next few days, some companies are going ex-dividend; let’s look at three of those companies.
Tuesday, 6 August 2019
On Tuesday, iFAST Corporation Ltd (SGX: AIY) is pencilled in to go ex-dividend. iFAST is an Internet-based investment products distribution platform that provides a wide range of investment products and services. The company is dishing out 0.75 Singapore cent per share for its second quarter.
For the latest quarter ended 30 June 2019, iFAST’s net revenue increased by 9.5% year-on-year to S$16.4 million, but net profit tumbled 16.5% to S$2.5 million. The fall was largely due to volatile financial market conditions and poor investor sentiments in Asia. A bright spot for the quarter was that iFAST’s assets under administration (AUA) climbed 12.2%, from S$8.05 billion at the beginning of 2019 to a new high of S$9.04 billion, as of 30 June 2019. As noted here, higher AUA for iFAST generally leads to higher revenue.
iFAST’s share price last closed at S$1.08 on Friday, translating to a price-to-earnings (PE) ratio of around 30 and a dividend yield of 2.9%.
Wednesday, 7 August 2019
The next day, luxury watch retailer Cortina Holdings Limited (SGX: C41) is poised to go ex-dividend. Cortina is giving out 2.0 Singapore cents per share as a final dividend and 3.5 cents as a special dividend for its fourth quarter.
For the year ended 31 March 2019, its net profit surged 31% year-on-year to S$29.2 million from S$22.3 million, mainly on the back of better sales margin. Earnings improved despite a 1% drop in sales to S$460.8 million.
As for its outlook, Cortina commented in its earnings report:
“The global economy remains uncertain and will continue to pose challenges to the Group’s future performance. On the other hand, the purchasing power of the regional consumers continues to rise. The Group will continue to review and fine tune its strategies and adapt to the changes and emerging trends in the industry and in the markets that it operates in. Barring unforeseen circumstances, the Group will remain profitable.”
Cortina’s shares last traded at S$1.42 apiece on Friday. At that share price, the company had a PE ratio of just 8 and a dividend yield of slightly below 4%, including the special dividend.
Thursday, 8 August 2019
A day before National Day, curry puff purveyor Old Chang Kee Ltd (SGX: 5ML) is slated to go ex-dividend. The company is paying 1.5 Singapore cents per share for its fourth quarter.
For the 12 months ended 31 March 2019, Old Chang Kee’s top-line grew 5% year-on-year to S$89.8 million due to higher revenue from retail outlets and other services (includes export sales, events, delivery and catering services). Meanwhile, net profit surged 14.6% to S$4.3 million.
Looking ahead, however, Old Chang Kee warned that in Singapore, it “expects rental, labour and raw material costs to remain high in the next reporting period and the next 12 months”. It added that the “outlook for the food retail market continues to look challenging, amidst the tight labour market”.
Old Chang Kee’s shares last closed at S$0.78 each on Friday, giving a PE ratio of 22 and a dividend yield of 3.8%.
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 iFAST Corporation Ltd. Motley Fool Singapore contributor Sudhan P owns shares in iFAST Corporation Ltd.