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 also grow profits over time.
One way to find these companies is to look for those that have long term dividend track record – say 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 goes even further back than 10 years and has paid a dividend for more than 15 years.
The company I’m talking about in this article is ComfortDelGro Corporation Limited (SGX: C52).
As a quick introduction, Comfortdelgro is a transport company with operations mainly in Singapore, Australia, the UK, and China. It is also the majority owner of vehicle and non-vehicle testing and inspection outfit VICOM Limited (SGX: V01) and bus and rail services operator SBS Transit Ltd (SGX: S61).
There are plenty of reasons to like about ComfortDelGro as a dividend stock. To start with, it has been paying a dividend for more than 15 years in a row. In 2003 (the year Comfort Group and DelGro Corporation merged), it paid a dividend per share (DPS) of 4.21 cents.
Since then, it has since grown its DPS over the years to 10.4 cents in 2018. Though the growth in DPS has not been smooth, the conglomerate has not missed any dividend payment over the last 16 years!
The growth in dividend is possible only if a company can grow its underlying revenue and profitability. So how did ComfortDelGro perform financially during that period? Here are the numbers.
Source: ComfortDelGro’s annual reports
From the above, we can see that ComfortDelGro grew its top line and bottom line over the years. It is from the growth of its underlying business that it managed to raise its dividend payout over the period.
At its current price of S$2.43, ComfortDelGro is trading at a trailing dividend yield of 4.4%.
From the above, we can see that ComfortDelGro has sustained and grown its dividend over the last 15 years.
Though past performance is no guarantee of future results, its strong track record should provide a good indication of what investors can expect from the company in the future.
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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. The Motley Fool Singapore has recommended the shares of SBS Transit Ltd and VICOM Limited.