3 Singapore Stocks That Could Pay More Dividends in 2024

For income investors, a key focus will be investing in stocks that could increase dividends. Higher dividends not only help to increase an investor cashflow but can also act as a steady source of passive income. If dividends are your focus, you should turn to these 3 Singapore stocks that could pay more dividends in 2024.

DBS Group

DBS is Singapore’s largest bank by market capitalisation. This blue-chip stock reported an excellent set of results in 3Q 2023. DBS nine-month net profit is up 35% to S$7.89 billion while declaring an interim dividend of of S$48 cents a share. The CEO mentioned that the record income in the third quarter was achieved as net interest margin continued to expand and growth in commercial book non-interest income was sustained. The successful integration of Citi Taiwan has progressed which is in line DBS strategy of building meaningful scale in growth markets. With interest rates staying higher-for-longer, it will be a net benefit to earnings, and with solid balance sheet, ample liquidity and prudent general allowance reserves and healthy capital ratios, it will provide DBS strong buffers against macro uncertainties. Hence, with record profits and ample reserves, DBS should be able to pay more dividends in 2024. You can view the bank website here.

Singapore Telecommunications

Singtel reported a good set of results for half year ended 30 Sep 2023. Although operating revenue is down 3% to S$7.028M, its underlying net profit is up 12% to S$1,121M. The positive results was due to the positive momentum in NCS, Digital InfraCo and across the mobile business in Singapore and Australia despite the softness in the enterprise business. Regional associates’ contributions also grew, boosted by improving market dynamics. With a simplified organisational structure and successful asset recycling, Singtel is now in a a stronger position to increase its dividends to shareholders. In fact, Singtel has announced that its dividend policy will increase to between 70% and 90% of underlying net profit compared to the previous 60%-80% of underlying net profit. Hence. we could see Singtel declaring a higher dividend in 2024. You can view the company website here. 

Haw Par Corporation

Haw Par Corp has a strong consumer healthcare business that promotes healthy lifestyles through its healthcare products. The largest contributor to the healthcare business comes from a brand that it owns — Tiger Balm. Besides the consumer healthcare business, the Group also engages in the leisure business and holds significant investments in securities and properties. For the half year ended 30 June 2023, revenue is up 16.3% to S$111.1M while net profit is up 34.9% to S$104.1M. For the first time  since 2018, Haw Par finally increased its interim dividend to S$20 cents a share compare to S$15 cents previously. With its strong balance sheet and net cash position, Haw Par will be one of the 3 Singapore stocks that could pay more dividends in 2024.

Conclusion

With the on-going geo political tensions around the world couple with uncertain economic outlook, it pays to own a portfolio of good stocks that could pay more dividends in 2024. However, investors need to do their due diligence before buying.