3 Singapore Companies That Have Paid Dividends For More Than 20 Years
Dividend investors are constantly searching for companies that can sustain and grow their dividends over time. One way to find these companies is to look for those that have a long-term dividend track record, preferably more than 10 years.
Can we find such companies in Singapore?
Yes!
In fact, I will share with our readers three Singapore companies that have paid out dividends for more than 20 years.
The first company is Oversea-Chinese Banking Corp Limited (SGX: O39), or OCBC. One of the three major banks based out of Singapore.
1. OCBC Limited (SGX: 039)
OCBC has been paying dividends for more than 20 consecutive years. In 1998, it paid a dividend per share (DPU) of S$0.16. The bank has since grown its dividend payout to S$0.43 in 2018. Though the growth in DPU has not been smooth, OCBC has not missed any dividend payments over the last 20 years!
This dividend growth is only possible if the company grew its underlying revenue and profitability. So, how did OCBC perform financially during that period?
Here are the numbers:
| 1998 | 2018 | Growth | |
|---|---|---|---|
| Total Income (S$ billion) | 2.0 | 9.7 | 385% |
| Net Profit (S$ billion) | 0.5 | 4.5 | 838% |
| Earnings Per Share (S$) | 0.37 | 1.06 | 186% |
Source: OCBC’s annual reports
OCBC grew its top and bottom lines over the years. It is because of the growth of its underlying business that the bank was able to grow its dividend payout.
At OCBC’s current share price of S$11.70, it is trading at a dividend yield of 3.7%.
2. Singtel Limited (SGX:Z74)
The next company is Singapore Telecommunications Limited (SGX: Z74) or SingTel. One of the three main telecoms operators in Singapore.
SingTel has been paying a dividend for more than 20 consecutive years. In 1998, it paid a dividend per share (DPS) of 5 cents. The telco has since grown its dividend payout over the years to 20.5 cents in 2018 (albeit this included a special dividend of 3 cents per share in 2018). Though the growth in DPU has not been smooth, SingTel has not missed any dividend payment over the last 20 years!
The growth in dividends is possible only if the company is able to grow its underlying revenue and profitability. So how did SingTel perform financially during that period?
Here are the numbers:
| 1998 | 2018 | Growth | |
|---|---|---|---|
| Total Income (S$ billion) | 4.9 | 17.5 | 257% |
| Net Profit (S$ billion) | 2.0 | 5.5 | 175% |
| Earnings Per Share (S$) | 0.13 | 0.33 | 157% |
Source: SingTel’s annual reports
From the above, we can see that SingTel grew its top line and bottom line over the 20-year period. It is because of the growth of its underlying business that the telco was able to increase its dividend payout over the period.
At its current price of S$3.08, SingTel is trading at a dividend yield of 5.7% (excluding its special dividend).
3. Haw Par Corporation Ltd (SGX: H02)
The final company that we have is Haw Par Corporation Ltd (SGX: H02).
As a quick introduction, Haw Par is the maker of the Tiger Balm brand of ointment. Other than its healthcare arm, it also has strategic stakes in UOL Group Limited (SGX: U14) and United Overseas Bank Ltd (SGX: U11).
Haw Par has been paying dividends for more than 20 years in a row. In 1998, it paid a dividend per share (DPU) of 8.1 cents. The company has since grown its dividend payout over the years to 115 cents (including an 85 cents special dividend) in 2018. In fact, excluding special dividend, Haw Par has never lowered its dividend payout over the last 20 years.
The growth in dividend is possible only if the company has grown its underlying revenue and profitability. So how did Haw Par perform financially during that period?
Here are the numbers:
| 1998 | 2018 | Growth | |
|---|---|---|---|
| Total Income (S$ billion) | 170.9 | 237.8 | 39% |
| Net Profit (S$ billion) | 16.3 | 179.1 | 999% |
| Earnings Per Share (S$) | 8.7 | 81.2 | 833% |
Source: Haw Par’s annual reports
From the above, we can see that Haw Par grew both its top line and bottom line over the years. It is from this growth that Haw Par was able to increase its dividend payout during the same time frame.
Key Takeaway
There you go, three companies that have consistently paid dividends for more than 20 years. From here, investors can carry out their own research to decide whether these three companies qualify as their investment candidates.
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