Smart Investing: Four Singapore Stocks with Potential Dividend IncreasesHey, hey, hey! Welcome to another episode of “The Investing Iguana”, the show where I, Iggy, your friendly and fabulous host, share with you the latest and greatest tips and tricks on how to grow your wealth through smart investing. Today, we’re going to talk about one of my favorite topics: dividends. Understanding Dividends: Getting Paid for OwnershipDividends are those sweet, sweet payments that companies make to their shareholders just for owning their stocks. Who doesn’t love getting paid to do nothing? I know I do! But not all dividends are created equal. Some companies pay more than others, and some companies can even increase their dividends over time, giving you a nice raise every year. How awesome is that? In this article, I’m going to show you four Singapore stocks that could potentially increase their dividends in the near future, based on their recent earnings reports and future prospects. These are stocks that have strong businesses, solid balance sheets, and ample cash flow to reward their loyal investors. 1. Genting Singapore (SGX: G13) Genting Singapore is the owner and operator of Resorts World Sentosa (RWS), an integrated resort with a casino, a hotel, and an aquarium. Despite being hit hard by the pandemic, things are looking up for the group as travel restrictions ease and more people flock to its attractions. In the first quarter of 2023 (1Q 2023), Genting Singapore reported a strong set of earnings. Gaming revenue jumped 45% year on year to S$339.9 million, while non-gaming revenue surged by 89% year on year to S$144.4 million. Net profit for 1Q 2023 has more than tripled year on year from $40.4 million to $129.2 million. With China and Hong Kong announcing their reopening, Genting Singapore’s second quarter looks promising as air travel continues to surge. There is a high chance the business can pay out a higher interim dividend than the S$0.01 that was paid out last year. 2. Keppel Corporation Limited (SGX: BN4)Keppel Corporation is a global asset manager and operator in the areas of infrastructure, real estate, and connectivity. The group reported a strong 1Q 2023 with both revenue and net profit rising year-on-year. Revenue increased by 28% year on year to S$1.6 billion, while net profit soared by 112% year on year to S$300 million. The group has been undergoing a strategic transformation since last year, aiming to become an asset-light and capital-efficient company focused on its core businesses. With a strong cash position and a streamlined business portfolio, Keppel Corporation is well-positioned to reward its shareholders with higher dividends. 3. StarHub Ltd (SGX: CC3)StarHub is a telecommunication company that offers mobile, broadband, and cable TV services to households and delivers cybersecurity and data analytics services to businesses. The company reported total revenue rise of 8.7% year on year to S$557.4 million in 1Q 2023. To cope with the challenges, StarHub has been diversifying its revenue streams into new areas such as cybersecurity, data analytics, cloud computing, and digital media. The group has a dividend policy of paying out at least 80% of its net profit as dividends. 4. Civmec Ltd (SGX: P9D)Civmec is an integrated construction and engineering services provider to the energy, resources, and infrastructure sectors. Revenue soared by 75% year on year to A$201 million in 3Q FY2023, while net profit surged by 123% year on year to A$10.5 million. The group has a robust order book of A$1.1 billion, which provides good revenue visibility for the next two years. With a strong cash flow generation and low net debt position, Civmec is well-positioned to offer an attractive dividend yield. Conclusion So there you have it, folks. Four Singapore stocks that could increase their dividends in the near future: Genting Singapore, Keppel Corporation, StarHub, and Civmec. These are stocks that have strong businesses, solid balance sheets, and ample cash flow to reward their loyal investors.
Remember, this is not financial advice, but rather my personal opinion based on research and analysis. Always do your own due diligence before investing in any stock. Invest smartly, invest wisely, and invest iguanaly! Happy investing! |
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