4 Singapore stocks surging with increased dividends

SINGAPORE: Good news for investors! Some stocks on the Singapore stock market have increased their dividend payments recently.

These companies provide a reliable income source and show promising prospects for long-term investment growth, including the chance for their share prices to go up.

Here are four SG stocks with increased dividends reported by The Smart Investor.

1. DFI Retail Group

DFI Retail Group, a retailer across Asia, is making waves with its boosted dividends. In 2023, the company saw a fivefold increase in its underlying profit, reaching US$155 million (S$207.39 million), even though its revenue remained at US$9.2 billion (S$12.31 billion).

This strong performance led to DFI Retail Group’s 2023 dividend increasing to US$0.08 (S$0.11) from only S$0.03 the year before. Despite expecting some tough times in 2024 due to higher interest rates and inflation, the company’s management is still optimistic about its future.

2. United Overseas Bank Ltd

United Overseas Bank Ltd, Singapore’s third-largest bank, had a standout year in 2023. Thanks to high-interest rates, the bank’s total income shot up by 20% to S$13.9 billion, and its net profit surged by 25% to S$5.7 billion, even with extra expenses from acquiring Citigroup.

UOB announced a final dividend of S$0.85, making the total 2023 dividend S$1.70 per share, a hefty 26% increase from the year before.

With plans for low single-digit loan growth and double-digit fee income growth in 2024, UOB remains optimistic about its future trajectory, especially after successfully integrating Citigroup’s consumer banking franchise in several key markets.

3. IHH Healthcare Berhad

IHH Healthcare Berhad, a leading healthcare provider, had a strong financial performance in 2023. Despite challenges, the company reported impressive numbers: revenue rose by 16% to RM 20.9 billion (S$5.94 billion), and net profit soared by 91% to RM 3 billion (S$852.9 million) compared to the previous year.

With a positive free cash flow of RM 1.8 billion (S$511.7 million), IHH Healthcare decided to issue a second cash dividend of RM 0.055 (S$0.016), making the total dividend for 2023 RM 0.186(S$0.053), more than double what was paid out in 2022.

In addition, with a new dividend policy aiming to give shareholders at least 30% of the group’s core net profit, IHH Healthcare is showing its dedication to rewarding investors while pursuing further growth opportunities.

4. Sembcorp Industries

Sembcorp Industries, a blue-chip utility and urban solutions provider, had mixed results in 2023. Despite a 10% dip in revenue to S$7 billion, the company increased its net profit by 11% to S$942 million, mainly through its core operations.

SCI’s total dividend for 2023 came to S$0.13 per share, slightly up from the previous year.

SCI is focusing on expanding its renewable portfolio to meet the growing demand for sustainable solutions. This is evident in its increased gross renewables capacity, which rose from 9.8 GW in 2022 to 13.8 GW by Feb 2024.  /TISG

Read also: 4 Singapore REITs with higher dividend yields than CPF OA’s 2.5%

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