5 Singapore Stocks Paying Out Dividends in December

2023 is almost ending.

The last earnings season for the year has just concluded as businesses either reported their latest financials or provided crucial business updates.

For income investors, there is good news as many companies are still doling out dividends in the final month of the year.

We feature five stocks that are poised to pay out dividends in December.

Singtel (SGX: Z74)

Singtel is Singapore’s largest telecommunication company and offers mobile, broadband, and Pay TV services in addition to cybersecurity services.

The blue-chip group reported a respectable set of earnings for the first half of its fiscal 2024 (1H FY2024) ending 30 September 2023.

Although operating revenue dipped by 3.2% year on year to S$7 billion, Singtel managed to see its underlying net profit climb 11.6% year on year to S$1.1 billion.

An interim dividend of S$0.052 was declared and will be paid on 8 December.

Management has warned of a challenging macroeconomic outlook with persistent inflation coupled with high interest rates that will dampen consumer sentiment.

Singtel will, however, continue to improve margins within its core business and scale growth in its Digital InfraCo and NCS divisions.

The group will also recycle capital to fund this future growth.

Singapore Airlines Limited (SGX: C6L)

Singapore Airlines Limited, or SIA, is Singapore’s flagship airline.

The carrier reported a stellar set of earnings for 1H FY2024 as higher load factor pushed net profit to S$1.4 billion, its highest level ever.

In line with the good results, the airline declared an interim dividend of S$0.10 that will be paid on 22 December.

Looking ahead, the group continues to build its fleet with 96 aircraft on order while expanding its network of destinations through code sharing agreements and collaborations.

SIA welcomed close to 3.1 million passengers on its flights in October 2023, up 36% year on year and a post-pandemic new high.

Despite this, the airline warned of stiffer competition with capacity restoration across multiple routes.

This phenomenon may pressure its passenger yields while demand for air freight is also projected to remain soft because of excess inventories and geopolitical tensions.

High fuel prices could be another headwind for the group but it will continue to improve the connectivity between SIA and Scoot to mitigate this risk.

Mapletree Industrial Trust (SGX: ME8U)

Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 56 properties in the US, 85 in Singapore and one in Japan.

The assets under management (AUM) of the REIT stood at S$9.2 billion as of 30 September 2023.

MIT reported a commendable set of earnings for its second quarter of fiscal 2024 (2Q FY2024) ending 30 September 2023.

Gross revenue dipped by 0.8% year on year to S$174.1 million while net property income (NPI) slid 1.4% year on year to S$128.6 million.

Distribution per unit (DPU) fell by 1.2% year on year to S$0.0332 and will be paid on 5 December.

MIT had just concluded the yield-accretive acquisition of a data centre in Japan which will contribute to rental income in 3Q FY2024.

With gearing at 37.9% and a low cost of debt of 3.2%, the industrial REIT should have more opportunities for yield-accretive purchases.

Frasers Logistics & Commercial Trust (SGX: BUOU)

Frasers Logistics & Commercial Trust, or FLCT, owns 107 industrial and commercial properties with an AUM of around S$6.4 billion as of 30 September 2023.

For its the second half of its fiscal 2023 (2H FY2023), revenue inched down 0.8% year on year to S$212.8 million while NPI fell by 4% year on year to S$155.5 million.

DPU dropped by 6.6% year on year to S$0.0352 and will be paid out on 14 December.

Occupancy stood high at 96% with healthy positive rental reversion of 18.9% for FY2023.

The REIT’s aggregate leverage was also low at just 30.2% with a low cost of debt of just 2.2%.

FLCT also announced the acquisition of a logistics development in the Netherlands for around S$20.9 million which will be forward funded by the REIT.

Completion is slated for 1 November 2024 and this transaction will be yield-accretive for the REIT.

The Hour Glass (SGX: AGS)

The Hour Glass, or THG, is a luxury watch retailer with a network of 40 boutiques across nine cities in the Asia Pacific region.

The group released its 1H FY2024 earnings and it was a mixed set of results.

Revenue edged up 1% year on year to S$566.3 million but net profit fell by 9% year on year to S$77 million.

Despite the decline, THG declared an interim dividend of S$0.02, unchanged from a year ago.

This dividend will be paid on 6 December.

Management did warn, however, that the macroeconomic environment and geopolitical situation may negatively impact sentiment for the luxury watch sector.

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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust and Frasers Logistics & Commercial Trust.

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