Earnings season is here again. Many companies have already reported their earnings and have also announced higher dividend payouts. Let’s look at three companies that have raised their interim dividends.
Oversea-Chinese Banking Corp Limited
Oversea-Chinese Banking Corporation (SGX: 039) saw its total income for the second quarter ended 30 June 2019 increase by 6% year on year to S$2.62 billion, while net profit grew 1% to S$1.22 billion. The higher profitability was due to record earnings from its banking franchise, which more than offset lower income contributions from Great Eastern Holding Limited, OCBC’s insurance subsidiary.
As a reflection of continued confidence in its business and to reward shareholders for their loyal support, OCBC increased its interim dividend by 25% to S$0.25 per share, up from S$0.20 a year ago. The interim dividend payout represents 44% of the group’s 2019 first-half net profit.
United Overseas Bank Ltd
OCBC’s rival, United Overseas Bank (SGX: U11) also upped its interim dividend after posting strong earnings. For its second quarter, total income grew 10% year on year to S$2.58 billion, and net profit climbed 8% to a record of S$1.17 billion. The strong bottom-line growth was driven by improvement in both interest and non-interest income.
With the improved earnings, UOB’s board declared an interim dividend of S$0.55 per share, an increase of 10% from S$0.50 per share dished out one year prior. The company said the rise “reflects UOB’s commitment to reward shareholders while retaining adequate resources for capital and growth needs.” The interim dividend represents a payout of around 41% of UOB’s 2019 first-half earnings.
Sheng Siong Group Ltd
Supermarket chain Sheng Siong (SGX: OV8) posted a strong set of second-quarter results, too. Revenue for the latest quarter climbed 11.8% year on year to S$238.2 million, while net profit increased by 7.6% to S$18.4 million. The top-line growth was mainly due to sales from new stores opened.
Just like the two local banks, Sheng Siong upped its interim dividend by 6% from 1.65 Singapore cents per share to 1.75 cents. The latest dividend gives a payout ratio of around 70% of Sheng Siong’s 2019 first-half earnings.
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 OCBC, UOB, and Sheng Siong. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.