We already at the beginning of 2025. Income investors will be wondering which stocks will increase their dividend payout given that REITs will continue to see decline in DPU.
Income investors who still want to receive dividend income to improve their cash flow, can consider non-REIT stocks. Here are 3 Singapore stocks that could increase their dividend in 2025.
BRC Asia
I first mentioned BRC Asia in my article dated 22 Oct 2024. The share price then was $2.39. You can view the article here. The share price now is $2.72. Not too shabby I guess.
For FY2024 ended 30 Sep 2024, BRC Asia reported revenue decreased 9% year-on-year (“y-o-y”) to S$1.5 billion due to lower steel prices. However, gross profit increased 11% to S$153.8 million for FY2024, driven by the higher margin steel fabrication segment, and partially offset by a reduction in lower-margin international steel trading business.
The Group’s net profit attributable to shareholders rose to a record high of S$93.5 million for FY2024, marking a 23% increase y-o-y. The Group’s balance sheet remained strong with cash and cash equivalents of S$191.4 million as of 30 September 2024.
The company has declared a final dividend of 8 Singapore cents and a special dividend of 6 Singapore cents. These bring the total dividend for FY2024 to 20 Singapore cents. This translate to a yield of 7.3% based on current price.
The yield is definitely better some REITs and worse facing falling DPU. The dividend is poised to rise further given the growth in major public projects, including the mega Changi Airport Terminal 5, Tuas Port developments, contracts for phase two of the Cross Island MRT Line and the government pledge to launch 100,000 HDB flats from 2021 to 2025.
Hence, BRC Asia is definitely one of the 3 Singapore stocks that could increase their dividend in 2025. You can view the company website here.
Centurion Corporation
Centurion Corporation is a leading provider of purpose-built workers accommodation assets in Singapore, Malaysia, and China, student accommodation assets in Australia, the United Kingdom, United States and China, and build-to-rent assets in China.
The Group owns and manages a strong portfolio of 34 operational accommodation assets totalling 66,660 beds as of 30 September 2024. Centurion’s operational workers accommodation assets are managed under the “Westlite Accommodation” brand.
The Group’s operational student accommodation assets are managed under the “dwell” brand, with ten assets in the UK, three assets in US, two assets in Australia, and two assets in China.
For half year ended 30 June 2024, Centurion reported revenue increased 27% to S$124.4 million in 1H 2024 mainly due to positive rental revisions and strong occupancies across the PBWAs and PBSAs and weaker Malaysia Ringgit which reduced the revenue reported in Singapore dollars.
Excluding fair value adjustments, net profit from core business increased 47% in 1H 2024 due to higher revenue, partly mitigated by higher tax expense and higher administrative expenses.
The company declared an interim dividend of 1.5 cents which is higher than the 1.0 cents declared in the previous year. The company is well position to increase dividend further due to demand is underserved by supply of purpose-built, professionally managed dormitory beds.
Hence, Centurion could be one of the 3 Singapore stocks that could increase their dividend in 2025. You can view the company website here.
Riverstone Holdings
Riverstone is established in year 1989 and is one of the leading manufacturers of gloves in the cleanroom and medical industry. The company manufacture top of the line healthcare gloves, nitrile gloves, finger cots, face masks, packaging bags etc.
For 3QFY24, Riverstone reported revenue surged 33.9% y-o-y to RM298.4 million, supported by increased volume and higher selling prices. Gross profit margin remained flat at 34.7% while operating profit margin dropped 2.7 pts to 30.3% mainly due to impact from foreign exchange loss.
The company declared an interim dividend of 4.0 sen (RM) per ordinary share. Including the 8.0 sen (RM) declared and paid this year, the total dividend payout stands at 82.0%.
The company is well positioned to increase dividends this year as the company is on track to increase capacity for six new cleanroom production lines to cater to the growing demand from the recovering semiconductor and electronics industries.
In addition, there could be new virus appearing this year and this will increase demand for healthcare gloves. You can view the company website here.
In this article, I talk about 3 Singapore stocks that could increase their dividend in 2025. However, with the expectation of more volatility in the markets this year, it is prudent that investors take a cautious approach towards investing.
Disclaimer: Please note that the stocks mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these stocks.
