I like to monitor companies that dish out dividends for investment ideas.
In the next few days, there are some companies going ex-dividend. In other words, you need to own shares in the company before a particular day of the week to receive their dividends. Let’s look at three of those companies.
Wednesday, 21 August 2019
On Wednesday, Singapore Technologies Engineering Ltd (SGX: S63) will be going ex-dividend. The conglomerate is dishing out S$0.05 per share for its second quarter of 2019.
For the latest quarter, ST Engineering’s revenue grew 8% year-on-year to S$1.78 billion while its net profit rose 18% to S$138.2 million. In April, the acquisition of MRA Systems (MRAS) was completed, and that contributed well to both sales and earnings.
The group’s future looks bright. It said that its order book is at a record high of S$15.6 billion at the end of June 2019, of which around S$3.8 billion is expected to be delivered in the rest of the year.
ST Engineering’s share price closed at S$4.11 on Monday. At that price, the engineering firm had a trailing price-to-earnings (PE) ratio of 24 and a dividend yield of 3.7%.
Thursday, 22 August 2019
Dairy Farm International Holdings Ltd (SGX: D01) is poised to go ex-dividend on Thursday. Dairy Farm is giving out US$0.065 per share as an interim dividend.
For the six months ended 30 June 2019, the pan-Asian retailer’s sales fell 3% year-on-year to US$5.8 billion, but net profit was flat at US$178 million. Underlying net profit (which excludes things like one-off items), however, grew 5% to US$177 million.
Dairy Farm said the first half of 2019 saw a “strong performance from the Health and Beauty Division, and solid sales performances from Convenience, Home Furnishings and Restaurants”. It also added that its “underlying profit benefitted from higher contributions from Yonghui and Robinsons Retail partially offset by continuing business transformation costs”.
The company is currently undergoing a multi-year transformation plan to turnaround its business. If that takes off well, the retailer could see better years ahead.
Dairy Farm’s shares ended Monday at US$7.28 each, translating to a dividend yield of 2.9%.
Friday, 23 August 2019
On Friday, property outfit City Developments Limited (SGX: C09) (CDL) is going ex-dividend. CDL is paying out S$0.06 per share as a special dividend for its 2019 second-quarter.
The group’s revenue and net profit for the latest quarter fell by 37.5% and 26.4% respectively. The lower profitability was mainly due to timing differences with regards to profit recognition. To know more about CDL’s latest earnings, you can head here.
Shares in CDL closed at S$9.19 apiece on Monday, giving a price-to-book ratio of 0.8 and a dividend yield of 2.8%, including special dividends.
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 Dairy Farm International Holdings Ltd and City Developments Limited. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.