Seedly's Stocks For The Week: 2 Stocks with Good Dividend History
If you are one who is on the lookout for dividend payouts, this article is the right read for you. Here we present you with 2 stocks which possess a good dividend track record for the past 5 years.
However, it is important to note that a good dividend history may not necessarily translate to consistent payouts in the future. It is also crucial to find a good entry price, in order to increase the dividend yield you reap over time.
QAF (SGX: Q01)
First, up on the list, we have QAF Limited (SGX: Q01).
QAF’s core business deals with bakery operations in Singapore, Malaysia, the Philippines, Australia and China. They are also the largest producer of pork meat in Australia. Other than that, they are also involved in food trading and logistics operations.
For the past 5 years, QAF has consistently been giving an annual dividend of S$0.05 per share. An exception being in 2015, whereby it distributes dividends of S$0.08 per share! For the current year 2017, it has already distributed S$0.04 to its shareholders in April. Based on past payouts, the next S$0.01 is expected to be announced in August next month.
This year, its share price suffered a double whammy to hover at its current level of 1.30.
It first took a beating in February when it had to divest a portion of its Gardenia KL to comply with Malaysia regulation. More recently, its share price is under pressure due to a surge in wheat prices. This is caused by dry weather in the U.S which sent wheat prices soaring to its nearly 2-year high.
Dividend yield: 3.82%
Read also: 4 Forces That Move A Stock Price
STARHUB (SGX: CC3)
This household name should come as no surprise: Starhub (SGX: CC3).
StarHub provides information, communication, and entertainment services for consumer and corporate markets in Singapore. It operates a mobile network that provides 4G, 3G, and 2G services. To add on, it also manages an HFC network that delivers multichannel pay TV services, including HDTV and Internet TV.
Looking at its dividend history over the past 5 years (or even earlier in 2010), Starhub has been paying dividends of S$0.20 per share annually. An exception being in 2015, whereby it pays dividends of S$0.25 per share!
However, in FY2017, Starhub will be reducing its dividends for the first time since 2010. From their market outlook, they “intend to maintain a quarterly cash dividend of 4 cents per ordinary share for FY2017”. That is a 20% cut compared to FY2016.
For its latest quarter, Starhub’s net profits registered a 21% decline, compared to the previous year. This is partially caused by a huge drop in its customer base for its Pay TV business due to competition from OTT providers and website streaming services. With that, Starhub is actively fending off its competitors by coming up with new products such as StarHub Go and SurfHub.
Despite having the free cash flow, the company may use it to further its expansion plans. It is currently acquiring Accel Systems & Technologies, a company which provides cyber security solutions and services.
Dividend yield: 6.96%