SINGAPORE: If you’re looking to supplement your active income or build a retirement fund, then dividends can be a crucial component of your investment strategy.
For income investors eyeing dividend-paying stocks, here are five stocks paying out dividends in June, according to The Smart Investor.
1. Riverstone Holdings
Riverstone Holdings is a major player in the manufacturing of nitrile and natural rubber gloves, serving industries ranging from electronics to healthcare.
With six manufacturing facilities across Malaysia, Thailand, and China, the company boasts an annual production capacity of 10.5 billion gloves.
In the first quarter of 2024, Riverstone reported robust earnings, with revenue climbing 4.8% year-on-year to RM249.50 million (approx. S$71.56 million) and gross profit soaring 57.30% to RM97.5 million (approx. S$27.96 million).
Net profit surged by 54.5% to RM72.20 million (approx. S$20.71 million). The company also generated a positive free cash flow of RM 44.80 million (approx. S$12.85 million), up 19% from the previous year.
Riverstone declared an interim dividend of RM0.04 (approx. S$0.011) per share, payable on June 7.
2. NetLink NBN Trust
NetLink NBN Trust is the backbone of Singapore’s Nationwide Broadband Network, which designs, owns, and operates the passive fibre network infrastructure.
Despite facing challenges, such as a one-off write-off of decommissioned assets, the trust reported resilient earnings for fiscal 2024. Revenue inched up 1.9% to S$411.3 million, driven by higher residential connection revenue.
Although net profit dipped by 5.5% to S$103.2 million, the distribution per unit (DPU) edged up 1.1% to S$0.053, reflecting the trust’s stability.
Residential connections breached 1.5 million, and non-residential connections increased by 2.7% year-on-year. The DPU will be paid on June 12.
3. Singapore Technologies Engineering
Singapore Technologies Engineering (STE) operates at the forefront of technology and engineering, serving industries like smart cities, defence, and aerospace across more than 100 countries.
In the first quarter of 2024, STE reported an 18% year-on-year revenue increase to S$2.7 billion. During the quarter, the company secured S$3 billion in new contracts, boosting its order book to S$27.7 billion.
STE declared an interim dividend of S$0.04 per share, payable on June 5.
Management is optimistic about the growth potential of its digital business, aiming to triple its revenue to more than S$500 million by 2026.
4. Fraser & Neave
Fraser & Neave (F&N) is a renowned food and beverage company with a global presence, boasting brands like Magnolia and 100Plus.
In the first half of fiscal 2024, F&N reported a 2.5% year-on-year revenue increase to S$1.1 billion and a staggering 52.4% jump in net profit to S$83.8 million.
The company also generated a positive free cash flow of S$100.3 million, marking a 40% increase from the S$71.5 million generated the previous year.
The company declared an interim dividend of S$0.015 per share, payable on June 7.
F&N is expanding its footprint in Cambodia with a new dairy manufacturing facility set to commence operations in the first quarter of 2026.
5. Frasers Logistics & Commercial Trust
Frasers Logistics & Commercial Trust (FLCT) is a real estate investment trust (REIT) with a diverse portfolio spanning Singapore, Australia, the Netherlands, Germany, and the UK.
Despite challenges, FLCT reported a 3.9% year-on-year revenue increase to S$216 million for the first half of fiscal 2024.
Adjusted net property income rose 1.8% to S$158.7 million, but the distribution per unit (DPU) slipped by 1.1% to S$0.0348 due to increased finance costs. The DPU will be paid on June 18.
FLCT’s portfolio has a positive rental reversion of 14.2%, and its aggregate leverage stood at a comfortable 32.7%. /TISG
Read also: 4 Singapore blue-chip stocks showing strong potential for profit growth
Disclaimer: This article is for educational purposes only. It should not be considered Financial or Legal Advice. Investors should conduct their due diligence before making major financial decisions
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