4 Stable Stocks That Increase Their Dividends

Dividends represent a stream of passive income that is especially useful for income investors and also act as a good source of income for your retirement. Hence, investors should buy stocks that not only pay out consistent dividends but also increasing dividends over time. In this article, we single out 4 stable stocks that increased their dividend recently.

Singapore Telecommunications

For FY24, Singtel reported operating revenue down 3% to S$14.1B while underlying net profit is up 10% to S$2.3B.  This is due to increased regional associate contributions and higher interest income. Singtel has a relatively strong balance sheet with interest cover of 17.8x. Singtel declared a final one-tier tax exempt ordinary dividend of 9.8 cents per share consisting of a core dividend of 6.0 cents per share and a value realisation dividend of 3.8 cents per share. This is the third increase in dividends since the strategic reset three years ago. Singtel has also revised its dividend policy consisting of core dividend between 70% to 90% of underlying net profit and value realisation dividend of 3-6 cents annually. Hence Singtel is one of the 4 stable stocks that increase their dividends. You can view the company website here. 

Multi-Chem Ltd

For the half year ended 30 June 2024, Multi-Chem reported revenue increase by 9% to S$342.5 million. Net profit increase by 44% to S$16.4 million. The increase in revenue and profit for 1H2024 was mainly due to the increase in customer demands for its IT products. The company has a strong balance sheet with no borrowings. The company declared an interim dividend 11.10 cents per share which is higher than the previous half year of 8.80 cents. You can view the company website here.

Sheng Siong Group

For half year ended 30 June 2024, Sheng Siong reported revenue increase by 3.4% S$714.2 million. Net profit is up 6.8% to S$70.0 million. This is mainly due to a longer sales period prior to the Lunar New Year which fell in February. The company has a strong balance sheet with zero borrowings. The company declared an interim dividend of 3.2 cents which us higher than the previous half year of 3.05 cents. With is resilient business given that groceries are essential items, Sheng Siong is definitely of the 4 stable stocks that increased its dividend. You can view the company website here.

Vicom Ltd

Vicom reported revenue rose by $0.4 million or 0.8% to $56.3 million and its operating profit saw a growth of $0.2 million or 1.6%, reaching $16.8 million for the half year ended 30 June 2024. After factoring interest income less finance costs and taxation, the net profit attributable to shareholders increased by $0.2 million or 1.3% to $14.1 million. Vicom also has a strong balance sheet with zero borrowings. The company declared an interim dividend of 2.80 cents which is higher than the previous half year of 2.75 cents. You can view the company website here.

Conclusion

These are the 4 stable stocks that increased their dividends recently. As income investors, investors should invest in stable and growing dividend stocks to supplement their dividend income.