4 Steady Singapore Dividend Stocks I Will Buy with S$40,000


Dividends are a great source of passive income that helps to boost your bank account.

And with the beginning of a New Year, many of you should be receiving bonuses paid out by the companies you work for.

If you are thinking of investing in this bonanza, you can scout around for suitable dividend-paying stocks that can increase your flow of passive income.

Here are three reliable dividend stocks I plan to buy if I had S$40,000 to spare.

Haw Par Corporation Limited (SGX: H02)

Haw Par is a conglomerate with four divisions – Healthcare, Leisure, Property, and Investments.

The group is also the owner of the world-famous Tiger Balm brand that produces ointments and salves.

Haw Par has a long and storied history of paying out consistent dividends.

The group paid out a core ordinary dividend of S$0.20 per year from 2010 to 2017 before raising this to S$0.30 per year from 2018 to 2022.

For its recent first half 2023 (1H 2023) earnings, Haw Par reported a 16.3% year on year increase in revenue to S$111.1 million.

Net profit jumped nearly 35% year on year to S$104.1 million.

The healthcare group also generated a positive free cash flow of S$14.6 million, up 15.8% year on year.

Haw Par also raised its interim dividend from S$0.15 to S$0.20, bringing the annualised dividend per share to S$0.40.

StarHub Ltd (SGX: CC3)

StarHub is one of three leading telecommunication companies (telcos) in Singapore offering a range of mobile, broadband, and pay-TV services.

The telco reported an encouraging set of earnings for the first nine months of 2023 (9M 2023).

Revenue rose 4.8% year on year to S$1.7 billion while net profit climbed 29.1% year on year to S$114 million.

StarHub enjoyed year-on-year revenue increases across all its four divisions.

The telco paid out an interim dividend of S$0.025 for the first half of 2023 (1H 2023) and paid out a total dividend of S$0.05 for 2022.

StarHub has outlined ambitious goals during last year’s Investor Day 2023.

The group is seeking to create an all-in-one app and initiate an enterprise IT transformation.

The telco is targeting a total of S$500 million in cost savings from its DARE+ initiatives that will start flowing in from 2025 and 2026.

Should StarHub enjoy continued higher revenue and net profit, there is a good chance it can maintain or even increase its annual dividend.

The Hour Glass (SGX: AGS)

The Hour Glass, or THG, is a luxury watch retailer with more than 50 boutiques across 13 cities in the Asia Pacific region.

The group is the official retailer of speciality watch brands such as Rolex, Patek Philippe, Hublot, and Cartier.

THG reported a mixed performance for the first half of fiscal 2024 (1H FY2024) ending 30 September 2023.

Revenue inched up 1% year on year to S$566.3 million but net profit tumbled 9% year on year to S$77 million.

The luxury watch retailer also generated a positive free cash flow of S$40.1 million for 1H FY2024.

An interim dividend of S$0.02 was declared, in line with what was paid out a year ago.

THG paid out a total annual dividend of S$0.08 for both FY2022 and FY2023.

With healthy free cash flow generation, the luxury watch retailer should be able to maintain its total dividend for FY2024.

Venture Corporation Ltd (SGX: V03)

Venture Corporation is an electronic services provider and a provider of technology services, products, and solutions.

The blue-chip group serves various technology domains such as life science, genomics, medical devices, and computing.

Venture has maintained its S$0.25 per share interim dividend despite a downbeat set of earnings arising from a downturn in the semiconductor sector.

Revenue for 1H 2023 fell 11.9% year on year to S$1.6 billion with net profit tumbling nearly 20% year on year to S$140.3 million.

Despite the lower profit, Venture generated a significantly higher level of positive free cash flow.

For 1H 2023, the electronic service provider saw free cash flow leap more than five-fold year on year from S$39.9 million to S$229.4 million.

2022 saw Venture pay out a total dividend of S$0.75 for the year as net profit rose 18.4% year on year to S$369.6 million.

There is a high chance that Venture can maintain its final dividend of S$0.50 even if full-year net profit sees a year-on-year decline.

Boost your portfolio’s returns with 5 SGX stocks that promise both stability and steady growth. We bring you the names of these rock-solid stocks, including why they could drive massive dividends over the next few years. If you’re looking to invest for retirement, this guide is a must-read. Click HERE to download now.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.





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