Following my post in late-February where I shared 6 US companies that have increased their dividend payouts every single year over the last 5 years (in case you’ve missed out the post, you can check it out here – https://www.investingnote.com/posts/2584979), I have received requests from readers to do the same for Singapore-listed companies.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

As the saying that goes, “ask and you shall receive…”, in today’s post, you will find 7 Singapore-listed companies that have increased their payout over the last 5 years – the best thing about these companies is that, their dividend payouts were not disrupted even during the worse of the Covid-19 pandemic back in 2020. Another thing to note is that these companies also have displayed strong financial performances in the same time period (even in the year 2020.)

Let’s begin:

1. Keppel DC REIT (SGX:AJBU, $Keppel DC Reit(AJBU.SI))

Keppel DC REIT is Singapore, as well as Asia’s first pure-play data centre REIT. As the name implies, the REIT invests in real estate assets used for data centre purposes. 

As at 31 December 2022, the data centre REIT’s portfolio comprises a total of 23 data centres across 9 countries (Singapore, Australia, China, Malaysia, Ireland, Germany, the Netherlands, the United Kingdom, as well as Italy) with a total asset under management of S$3.7 billion. 

The REIT’s management declares a distribution payout (it’s the equivalent of dividends, but in REITs, it is known as distributions) on a semi-annual basis, and its payout over the last 5 years (between FY2018 and FY2022) is as follows:

• FY2018 – 7.32 cents
• FY2019 – 7.61 cents
• FY2020 – 9.17 cents
• FY2021 – 9.851 cents
• FY2022 – 10.214 cents

Over the 5-year period, Keppel DC REIT’s distributions have grown at a compound annual growth rate (CAGR) of 6.9%.

Its gross revenue and net profit performance in the same time period have also recorded a steady improvement – with the former increasing from $175.5m to $277.3m (a CAGR of 9.6%), and the latter going up from $157.7m to $252.5m (a CAGR of 9.9%.)

Finally, based on its closing price of $2.00 on 03 Mar 2022, and its distribution payout of 10.214 cents in FY2022, it represents a distribution yield of 5.1%.

2. Mapletree Industrial Trust (SGX:ME8U, $Mapletree Ind Tr(ME8U.SI))

Listed on the Main Board of the Singapore Exchange since 25 October 2010, and included in Singapore’s benchmark Straits Times Index from 24 September 2012, Mapletree Industrial Trust is a real estate investment trust whose portfolio comprises of real estate properties used for industrial purposes in Singapore, as well as for data centre purposes in the United States – so for those who are not so comfortable with investing in a REIT that holds solely data centre properties (in Keppel DC REIT) can consider investing in this REIT, where it has a mix of industrial properties. 

As at 31 December 2022, the REIT’s portfolio comprises a total of 141 properties – 85 in Singapore, and 56 in North America (including 13 data centres held through the joint venture with Mapletree Investments Pte Ltd), and a total assets under management of S$8.8 billion. 

The management of Mapletree Industrial Trust declares a distribution payout on a quarterly basis, and its payout over the last 5 years (between FY2018 and FY2022) is as follows:

• FY2018: 11.75 cents
• FY2019: 12.16 cents
• FY2020: 12.24 cents
• FY2021: 12.55 cents
• FY2022: 13.80 cents

Over a 5-year period, its distribution payout have grown at a CAGR of 3.3%.

Financial performance-wise over the same time period, it has also steadily increased, with its gross revenue going up from $363.2m to $610.1m (a CAGR of 10.9%), and its net profit margin climbing from $277.6m to $472.0m (a CAGR of 11.2%.)

Finally, based on its closing price of $2.35 on 03 March 2022, and a distribution payout of 13.80 cents in FY2022, it represents a distribution yield of 5.9%.

3. Mapletree Logistics Trust (SGX:M44U, $Mapletree Log Tr(M44U.SI))

Mapletree Logistics Trust is the first Asia-focused logistics REIT to be listed on the Singapore Exchange since 28 July 2005, and subsequently included in the STI from 23 March 2020. As the name suggests, the REIT invests in real estate properties used for logistics purposes. 

As at 31 December 2022, the REIT’s portfolio comprises 186 properties in the following countries – Singapore, Australia, China, Hong Kong, India, Japan, Malaysia, South Korea, and Vietnam, with a total assets under management of S$12.6 billion. 

Just like Mapletree Industrial Trust, the management of Mapletree Logistics Trust also declares a distribution payout to its unitholders once every 3 months, and over the last 5 years (between FY2018 and FY2022), its payout is as follows:

• FY2018: 7.618 cents
• FY2019: 7.941 cents
• FY2020: 8.142 cents
• FY2021: 8.326 cents
• FY2022: 8.787 cents

Over a 5-year period, Mapletree Logistics Trust’s distribution payout have grown at a CAGR of 2.90%.

Its financial results over the same time period is a strong one – with its gross revenue improving from $395.2m to $678.6m (a CAGR of 11.4%), and its net property income growing from $333.8m to $592.1m (12.2%.)

Finally, based on its closing price of $1.68 on 03 March 2023, and a distribution payout of 8.787 cents in FY2022, its distribution yield is 5.2%.

4. Parkway Life REIT (SGX:C2PU, $ParkwayLife Reit(C2PU.SI))

Parkway Life REIT is one of Asia’s largest-listed healthcare REITs, whose portfolio comprises of private hospitals in Singapore (Mount Elizabeth Hospital, Gleneagles Hospital, Parkway East Hospital), specialist clinic in Malaysia (MOB Specialist Clinics in Kuala Lumpur), along with 57 nursing homes in Japan as at 31 December 2022, and an assets under management of S$2.20 billion. 

The REIT is another one that pays out a distribution on a quarterly basis (another one to consider for those who prefer to invest in companies with a more regular dividend payout), and over the last 5 years (between FY2018 and FY2022), it is as follows:

• FY2018: 12.87 cents
• FY2019: 13.19 cents
• FY2020: 13.79 cents
• FY2021: 14.08 cents
• FY2022: 14.38 cents

Over the last 5 years, its distribution saw a CAGR of 2.9%. 

In terms of the REIT’s financial performance, it has been stable in the same time period, with its gross revenue going up from $112.8m to $130.0m (a CAGR of 2.9%), and its net property income improving from $77.9m to $87.0m (a CAGR of 2.2%.)

Finally, based on its closing price of $4.12 on 03 March 2023, and a distribution payout of 14.38 cents in FY2022, it represents a distribution yield of 3.5%.

5. PropNex Limited (SGX:OYY, $PropNex(OYY.SI))

Listed on the Singapore Exchange since 02 July 2018, PropNex Limited is Singapore’s largest-listed real estate agency. Its key businesses includes real estate brokerage, training, property management, and real estate consultancy. Apart from Singapore, PropNex also have a business presence in Cambodia, Indonesia, Malaysia, Vietnam, and Australia.

The management declares a dividend payout to its shareholders on a half-yearly basis, and in the last 4 years (between FY2019 and FY2022), it is as follows:

• FY2019: 3.5 cents
• FY2020: 5.5 cents
• FY2021: 12.5 cents
• FY2022: 13.5 cents

Over a 4-year period, PropNex’s dividends went up by a CAGR of a very impressive 40.1%!

Looking at its financial performance in the same time period, it is also very impressive – with its gross revenue growing from $419.8m to $1,029.2m (a CAGR of 25.1%), and its net property income soaring from $21.1m to $65.4m (a CAGR of 32.6%.)

Finally, based on its closing price of $1.87 on 03 March 2022, and a dividend payout of 13.5 cents in FY2022, its dividend yield is 7.2%.

6. Singapore Exchange (SGX:S68, $SGX(S68.SI))

Singapore Exchange, or SGX as it is more commonly known, is Singapore’s only stock exchange (hence it has a “moat” here.) The company seeks to serve as the world’s most trusted and efficient international marketplace, operating equity, fixed income, currency and commodity markets to the highest regulatory standards.

The management of SGX declares a dividend payout once every quarter, and over the last 5 years (between FY2018 and FY2022), it is as follows:

• FY2018: 30.0 cents
• FY2019: 30.0 cents
• FY2020: 30.5 cents
• FY2021: 32.0 cents
• FY2022: 32.0 cents

Over the last 5 years, its dividend payout have grown at a CAGR of 1.3%. 

The company’s financial performance in the same time period have also been very stable – with its gross revenue improving from $844.7m to $1,099.0m (a CAGR of 5.4%), and its net profit growing from $363.2m to $451.9m (a CAGR of 4.5%.)

Finally, based on its closing share price of $8.77 on 03 March 2023, and a dividend payout of 32.0 cents in FY2022, it represents a dividend yield of 3.6%.

7. Netlink Trust (SGX:CJLU, $NetLink NBN Tr(CJLU.SI))

Do you see a small box in your living room where you link your fibre optic cable to your router for Internet access? Yes, this box is installed by the Singapore-listed company Netlink Trust. The company provides nationwide network coverage to residential homes, and non-residential premises in mainland Singapore and its connected islands – in a way, the company has a “moat” here. 

The management declares a distribution payout to its unitholders on a semi-annual basis, and over the last 5 years (between FY2018 and FY2022), its payout is as follows:

• FY2018: 3.2 cents
• FY2019: 4.9 cents
• FY2020: 5.1 cents
• FY2021: 5.1 cents
• FY2022: 5.1 cents

Over the last 5 years, its distribution payouts have grown at a CAGR of 9.8%. 

Looking at its financial performance over the same time period, it has also seen a stable growth – with its gross revenue improving from $228.6m to $377.6m (a CAGR of 10.6%), and its net profit climbing from $50.0m to $91.3m (a CAGR of 12.8%.)

Finally, based on its closing price of $0.870 on 03 Mar 2022, and a distribution payout of 5.10 cents in FY2022, its distribution yield is 5.9%.

Closing Thoughts

So there you have it, a list of 7 Singapore-listed companies that have paid out a steadily improving dividend payout over the last 5 years.

For those who prefer to invest in companies that pay out dividends more regularly, you can have a look at Mapletree Industrial Trust, Mapletree Logistics Trust, Parkway Life REIT, and Singapore Exchange – where the respective companies’ management declare a dividend payout once every 3 months. 

Finally, this post is not a recommendation to buy any of the companies above, but rather, provide a first step for you to do more in-depth research about the respective companies before you make any investment decisions. 

Disclaimer: At the time of writing, I am a shareholder of Keppel DC REIT, Mapletree Industrial Trust, and Mapletree Logistics Trust.

Once again, this article is a guest post and was originally posted on ljunyuan‘s profile on InvestingNote. 

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