Singapore stocks are well-known for investing for dividend income. There is a wide range of stocks listed in Singapore Exchange that pay out consistent dividends allowing investors to enjoy a stream of passive income.
What’s even more attractive are companies that increase their dividends over time and this lifting their share price. Here are 4 Singapore stocks that increased their dividends which you may consider adding to your buy list.
Oiltek International
Oiltek International (Oiltek) is an integrated process technology and renewable energy solutions provider in the vegetable oils industry, providing solutions that cater to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil.
The Group provides reliable, innovative, diversified and comprehensive range of process and engineering solutions for use across all different sectors of the vegetable oils industry value chain worldwide.
Oiltek reported revenue was up by 22.8% to RM201.1 million for full year ended 31 December 2023 while net profit was up by 50.9% to RM19.1 million. The company declared a final dividend of 1.6 Singapore cents which is higher than the 1.2 cents declared in FY2022.
The dividend of 1.6 Singapore cents represent a yield of 6.4% based on its current price. With a current order book of RM361.0 million and with new orders secured of approximately RM322.1 million in FY2023, the company should be able to continue paying increasing dividends.
You can view the company website here.
Multi-Chem Ltd
Multi-Chem has been engaged as a value added supplier to PCB manufacturer for more than three decades. Multi-Chem, through the M.Tech Group, has also been engaged in the distribution of IT products since 2002.
The IT distribution business is now the main business for the Group and contributes more than 99% of the Group’s revenue.
In its full year ended 31 Dec 2023, Multi-Chem reported revenue increased by 7% to S$658.4 million. Net profit is up 36% to S$27.1 million. The company has minimal borrowings and hence it is a net cash company.
The company total dividends for FY2023 is 24.3 cents which is higher than the 17.7 cents in the previous year. With its strong balance sheet the company could be one of the 4 Singapore stocks that is able to pay increasing dividends over time.
You can view the company website here.
Oversea-Chinese Banking Corporation
OCBC reported record FY2023 profit. Total income is up 20% to S$13.5b lifted by growth across the Group’s diversified income streams, with net interest income at a record high, and trading and investment income higher.
Net profit is up 27% to S$7.02b while ROE is 13.7%. Asset quality remains resilient with NPL ratio of 1.0% and credit costs at 20 basis points.
OCBC declared total dividend of 82 cents for FY2023 which is 14 cents higher than the previous year. OCBC expect challenges ahead in the global macro environment.
However, with its strong capital, liquidity and funding positions, OCBC should be able to continue paying increasing dividends. You can view the bank website here.
Singapore Telecommunications
Singtel reported its business update for the nine months ended 31 December 2023. Operating revenue is down 3% to S$10,621 million due to absence of contributions from Trustwave1 and a 4% depreciation in the Australian Dollar.
Underlying net profit up 7% to S$1,680 million while net profit is up 53% to S$2,602 million. Singtel did not declare any dividend as Singtel declare dividend twice a year.
However, for the first half ended 30 September 2023, Singtel declared dividends of 5.2 cents per share which is an increase of 13% compared to the previous half year.
In addition, Singtel revised its dividend policy to between between 70% & 90% of underlying NPAT compared to the between 60% & 80%. This will result in higher dividends for shareholders in the future. You can view the company website here.
Conclusion
These are the 4 Singapore stocks that increased their dividends. It might just be the best Singapore dividend stocks in 2024. However, investors need to do their due diligence before investing in these stocks.
