4 Singapore Companies Paying Dividends in October

(TSI) dividends 2
(TSI) dividends 2

There is nothing as rewarding as receiving a dividend in your bank account.

Dividends not only give you cash in hand to spend as you please but also represent a tangible return on your investment.

Income-seeking investors also rely on dividend stocks to provide an additional layer of passive income on top of what they earn from work.

Fortunately, the Singapore stock market has plenty of dividend stocks for the picking.

These range from blue-chip stocks and REITs to smaller companies that have consistently paid out a dividend.

Here are four such companies that are slated to pay their dividends this month.

Singapore Exchange Limited (SGX: S68)

Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.

The blue-chip bourse operator reported a strong set of earnings for its fiscal 2023 (FY2023) ending 30 June 2023.

Revenue rose 8.7% year on year to S$1.2 billion.

Net profit climbed 26.5% year on year to S$570.9 million and the group proposed a quarterly dividend of S$0.085.

This dividend was S$0.005 higher than the previous year and will be paid on 20 October.

CEO Loh Boon Chye plans to scale SGX’s multi-asset offerings by tapping into its network and partnerships for FY2024.

He believes that the group is on track for mid-single-digit percentage growth in revenue and intends to reward shareholders with a mid-single-digit percentage increase in SGX’s dividend per share over the medium term.

There are signs that momentum is picking up for several of the bourse operator’s divisions.

For iron ore derivatives, contracts hit a record high of 140,000 for FY2023.

SGX’s foreign exchange (FX) franchise also enjoyed a 28.7% year-on-year growth in currency futures volume while its over-the-counter (OTC) FX franchise saw an average daily volume (ADV) of US$75.8 billion in FY2023.

The OTC FX franchise is on the way to achieving an ADV of US$100 billion by FY2025 or sooner.

UMS Holdings Ltd (SGX: 558)

UMS provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and related products.

The group reported a downbeat set of earnings for the first half of 2023 (1H 2023) because of the current downturn in the semiconductor industry.

Revenue fell by 9% year on year to S$155.1 million while net profit tumbled 27% year on year to S$29 million.

However, UMS’ free cash flow improved by 12.2% year on year to S$32.7 million for 1H 2023.

Despite the weaker results, UMS upped its interim dividend from S$0.01 to S$0.012.

This dividend will be paid on 26 October.

The mid to long-term outlook for the semiconductor industry is expected to brighten, though near-term prospects remain cloudy.

UMS’ key customer expects to outperform the markets and has renewed its integrated systems contract up till the end of 2025.

There is more good news. The group has also secured an in-principle agreement with a new customer for a renewable three-year contract.

Hongkong Land Holdings Ltd (SGX: H78)

Hongkong Land, or HKL, is a property development, management, and investment group that owns and manages 850,000 square metres of office and luxury retail assets in Hong Kong, Singapore, Beijing, and Jakarta.

For 1H 2023, HKL reported a 25% year on year fall in revenue to US$670.3 million as fewer development properties were completed.

Operating profit, however, dipped by just 0.5% year on year to US$392.1 million.

Underlying net profit slid 1% year on year to US$422 million but the property giant maintained its interim dividend of US$0.06 per share.

This dividend will be paid on 11 October.

Looking ahead, the group has ambitious plans.

It intends to open 10 retail developments in the next five years across seven Chinese cities such as Nanjing, Shanghai, and Chengdu.

This will bring the total number of commercial projects in the country to 17.

HKL is also slated to complete the West Bund Financial Hub development in Shanghai in three phases through 2027, with sale of the high-end waterfront apartments beginning next year.

CapitaLand Ascott Trust (SGX: HMN)

CapitaLand Ascott Trust, or CLAS, is a hospitality trust with a portfolio of 107 properties across 47 cities in 15 countries.

Its total assets under management stood at S$8.1 billion as of 30 June 2023.

CLAS announced a solid set of results for 1H 2023, with revenue jumping by 30% year on year to S$346.9 million.

Distribution per stapled security (DPSS) improved by 19% year on year to S$0.0278.

In August, CLAS announced an equity fund-raising exercise and issued 191,755,000 new private placement units at S$1.043 per unit along with 100,538,407 preferential units at S$1.025 per unit.

A total of S$303.1 million will be raised and be used for acquisitions and asset enhancement initiatives.

Because of this fundraising, CLAS declared an advance distribution of S$0.00701 per stapled security that will be paid on 11 October.

The hospitality trust also recently completed the divestment of four properties in France for €44.4 million.

These properties were sold at 63% above their book value and CLAS enjoyed a net gain of approximately €1.2 million.

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Disclosure: Royston Yang owns shares of Singapore Exchange Limited.

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