Investors are always keen to read about business growth in the form of higher revenue and net profits.
Such growth results in a higher share price as the business becomes more valuable, thus rewarding the investor with capital gains.
However, income-seeking investors can also use the same cues to search for stocks that pay out increasing dividends.
Most businesses with rising profits and cash flows will also pay out higher dividends.
If you’re looking for stocks that have the potential to up their dividends, you can look for those that are reporting better financial numbers and healthy prospects.
Here are four Singapore stocks that could increase their dividend payments next year.
Nanofilm Technologies is a provider of nanotechnology and technology-based solutions across a wide range of industries.
The group reported a healthy set of earnings for its fiscal 2022’s first half (1H2022).
Revenue rose 15.2% year on year to S$111.3 million, with broad-based year on year revenue increases across all three of Nanofilm’s divisions.
Net profit increased by 5.1% year on year to S$18.8 million but adjusted net profit (excluding COVID-19 expenses) climbed nearly 18% year on year.
Nanofilm hiked its interim dividend by 10% year on year to S$0.011.
The group has ambitious growth plans and is exploring a potential joint venture in advanced battery components for electric vehicles in China.
It also plans to explore acquisition opportunities to gain access to new customers in different regions.
Meanwhile, Nanofilm is working on setting up a coating services facility and expanding its nanofabrication production in the near term.
Raffles Medical Group, or RMG, is an integrated healthcare services provider with a network that includes three tertiary hospitals and more than 100 multi-disciplinary clinics.
Revenue for 1H2022 improved by 11.2% year on year to S$382.3 million as more local and foreign patients sought treatment as air travel resumed and restrictions were eased.
Operating profit surged 54.1% year on year to S$86.4 million while net profit soared 51.3% year on year to S$59.7 million.
Free cash flow also soared nearly three-fold from S$42.5 million a year ago to S$123.1 million.
RMG has received the approval to set up an in-vitro fertilisation and assisted reproductive therapy centre in Hainan, China.
This new facility will complement its healthcare offerings in Shanghai, Chongqing and Beijing and serve an estimated 40 million women who may require reproductive fertility services.
Sheng Siong operates one of the largest supermarket chains in Singapore and has a total of 66 outlets in heartland areas around the island.
For 1H2022, the group saw revenue dip 0.7% year on year to S$676.8 million.
The slight decline was due to a surge in 1H2021 in tandem with COVID-19 restrictions.
Gross profit inched up 3.4% year on year to S$199.1 million, and net profit increased by 2.1% year on year to S$67.5 million.
Sheng Siong declared an interim dividend of S$0.0315, slightly higher than the prior year’s S$0.031.
The group intends to prospect for spaces in new HDB estates to establish a presence in areas where it currently does not have a presence.
A strong catalyst will be the opening of new stores to drive growth for the business even as economies reopen and grocery spending normalises.
Construction of HDB flats has resumed and Sheng Siong will have a better chance of bidding successfully for new spaces this year.
The group will also work on improving its sales mix by shifting to higher-margin products.
The Hour Glass, or THG, operates 50 boutiques in the Asia Pacific region selling a variety of luxury watches.
The group carries popular Swiss watch brands such as Patek Philippe, Rolex, Hublot, and Omega.
For the fiscal year 2022 (FY2022) ending 31 March 2022, THG reported a 39% year on year jump in revenue to S$1 billion.
Net profit surged 86% year on year to S$157 million.
Free cash flow increased by 28.8% year on year from S$161.7 million to S$208.4 million.
A final dividend of S$0.06 was paid out, higher than the previous year’s S$0.04.
If interest continues to remain high for high-quality mechanical watches, then THG should report higher revenue and net profit in FY2023.
With higher free cash flow and better prospects, there is a good chance the luxury retailer will up the dividend.
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Disclaimer: Royston Yang owns shares of Raffles Medical Group.
The post 4 Singapore Stocks That Could Increase Their Dividends in 2023 appeared first on The Smart Investor.
Police found human remains at two sites
The brokerage has kept its “overweight” call on the Singapore consumer stocks sector.
Investors in interest rate futures switched their bets on Friday to narrowly favour a half-point interest rate rise by the Bank of England next week, having earlier this month seen a more than 80% chance that it would raise rates by 75 basis points. At 1335 GMT, rate futures showed a 51% chance of rates rising to 2.25%, and a 49% chance of an increase of a rise to 2.5% when the BoE announces its next Monetary Policy Committee decision on Sept. 22. Economists polled by Reuters forecast on average a 50 basis point rate rise.
India's current account deficit likely widened to its highest in nearly a decade in the April-June quarter, driven by soaring global commodity prices and the biggest capital outflows since the global financial crisis of 2008, a Reuters poll found. With the Indian rupee near a record low around 80 to the U.S. dollar and a worsening trade gap, worries over the size of the current account shortfall for Asia's third largest economy, gnawing at investor confidence for months, are set to intensify. The median forecast in a Sept. 9-15 Reuters poll of 18 economists showed India's current account deficit last quarter was $30.5 billion, or 3.6% of gross domestic product, the widest in nine years.
If you’re looking for a steady rise in DPU, here are five REITs that can provide that. The post 5 REITs That Should Enjoy Higher DPU Despite Higher Interest Rates appeared first on The Smart Investor.
Mr Trump warned that the US would have ‘big problems’ if he were to be charged with any crimes
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Last spring, a Palestinian farmer was planting a new olive tree when his shovel hit a hard object. The discovery has set off excitement among archaeologists, and the territory's Hamas rulers are planning a major announcement in the coming days. The mosaic was uncovered just a kilometer (half mile) from the Israeli border.
U.S. retail sales unexpectedly rebounded in August as Americans ramped up purchases of motor vehicles and dined out more amid lower gasoline prices, but demand is cooling as the Federal Reserve aggressively raises interest rates to fight inflation. Consumer spending, however, is likely to remain supported by persistent strength in the labor market, with other data on Thursday showing the number of people filing new claims for unemployment benefits last week fell to the lowest level in more than three months. The data was among the last batch of reports released before the Fed's policy meeting next Wednesday.
Wall Street's major indexes closed lower on Friday while U.S. Treasury prices climbed as investors' fears about the prospects for a global recession intensified while they also prepared for a massive U.S. interest rate hike from the Federal Reserve. Economic fears were amped up by a FedEx Corp revelation late on Thursday that a global demand slowdown had accelerated at the end of August and was on pace to worsen in the November quarter, prompting the delivery company to withdraw its financial forecasts. The warning came at a time when investors were already jittery ahead of a Fed meeting after which the central bank is widely expected to raise rates by 75 basis points.
* Yuan breaches 7-per-dlr level for first time in 2-years * Thailand's baht hits lowest level since Dec 2006 * Markets in Malaysia closed for holiday By Harish Sridharan Sept 16 (Reuters) – Asian currencies came under further pressure on Friday, as the yuan weakened below the threshold of 7 per dollar, while increased Federal Reserve rate hike expectations boosted U.S. Treasury yields and kept dollar demand intact. The yuan had fallen below 7 per dollar only twice since the global financial crisis of 2008, and its crossing of the level could now stoke fear of capital outflows. "We are in a very strong dollar environment, which is very hard to go against, and so (the People's Bank of China) won't be looking to defend any particular level rigorously…. It's really all about managing the pace of the moves."
MOSCOW (Reuters) -Russia's central bank lowered its key interest rate by 50 basis points to 7.5% on Friday, suggesting that its rate-cutting cycle may be close to an end as inflationary expectations rise and omitting guidance about studying the need for future cuts. "As we are close to the end of the easing cycle, we accept that the next step, as well as holding the rate, could be a hike," Governor Elvira Nabiullina said at a news conference. Nabiullina said the bank had considered cutting by 50 or 25 basis points, as well as holding the rate at 8%, on Friday.
Money markets in the euro zone have started pricing in a chance of an ECB rate cut late next year, as traders bet the bank may end up overtightening monetary policy by delivering a series of big rate hikes. Last week the European Central Bank lifted its deposit rate by an unprecedented 75 basis points (bps) to 0.75% to "frontload" policy tightening and get a hold of soaring inflation. Money markets now price in around 70 bps of hikes in both October and December.
China announced sanctions on Friday against the CEOs of American defense contractors Raytheon and Boeing Defense over a major U.S. arms sale to rival Taiwan. Foreign Ministry spokesperson Mao Ning did not specify what the sanctions would be against Gregory Hayes, chairman and CEO of Raytheon Technologies Corp., and Ted Colbert, president and CEO of Boeing Defense, Space and Security.
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Euro zone banks are holding onto trillions of euros in multi-year loans from the European Central Bank, data showed on Thursday, in a headache for a central bank that needs to mop up cash to battle runaway inflation. The ECB flooded the banking system with free loans when inflation was too low in the last decade but this is working against it now that prices are rising too fast and interest rates have to go up. Lenders are sitting on 2.1 trillion euros ($2.09 trillion)they have borrowed under the ECB's third Targeted Long-Term Refinancing Operations (TLTRO) after choosing to give back just 6.5 billion euros at Thursday's repayment window.
(Reuters) -European shares slid 1.6% on Friday as recession warnings from two major global financial institutions and bets of a large interest rate hike from the U.S. Federal Reserve next week knocked sentiment. Delivery and logistics firms tumbled after U.S. peer FedEx Corp on Thursday withdrew its financial forecast, fanning fears of a global demand slowdown. Shares of Deutsche Post, Kuehne & Nagel, DSV Panalpina and Royal Mail Plc slumped between 4% and 8%.
WASHINGTON (Reuters) -U.S. consumers' near-term inflation expectations fell to a one-year low in September and the outlook over the next five years also improved, easing fears that the Federal Reserve could raise interest rates by a full percentage point next week. The University of Michigan's survey on Friday followed in the wake of data this week showing a surprise increase in consumer prices in August, which raised concerns that high inflation was becoming entrenched. "This more or less silences those calls for a 100-basis-point hike next week," said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.
The Swiss National Bank will join the 75 basis point rate hike club on Thursday to choke off nearly three-decade-high inflation, according to economists polled by Reuters, who also said price rises were yet to peak despite a strong currency. Last week, SNB Chairman Thomas Jordan shared similar concerns and stated the inflation outlook was more uncertain than normal, suggesting more aggressive rate hikes were needed. That expectation for a jumbo rate increase boosted the Swiss franc to its strongest level against the euro since January 2015 on Sept. 15, despite a similar 75 basis point hike from the European Central Bank earlier in the month.