To The Moon

Isn’t it a nice feeling to check your bank account and discover that a dividend has been credited to it?

Dividends not only represent a tangible return on your investment, but they also double up as a useful source of passive income.

Of course, to be able to enjoy a steady stream of dividends, you first need to allocate money to dividend-paying stocks.

Both REITs and blue-chip stocks are great candidates for dividends as they are both stable and dependable.

Well-run businesses with a long history of consistent payouts can also qualify.

We highlight four stocks that will be dishing out dividends this month.

DBS Group (SGX: D05)

DBS Group needs no introduction, being Singapore’s largest bank by market capitalisation.

The S$86.5 billion financial institution reported a sparkling set of earnings for 2022, with its net profit touching a new record high of S$8.2 billion.

In tandem with the strong numbers, the lender has upped its quarterly dividend from S$0.36 to S$0.42 and also announced a special dividend of S$0.50.

The total dividend of S$0.92 will be paid out on 21 April.

The bank does not expect interest rates to decline this year as inflation remains high.

These higher rates will continue to boost DBS’ net interest margin and net interest income.

The group is maintaining its guidance for mid-single-digit loan growth along with double-digit fee income growth as China’s reopening will help to benefit the region’s economies.

Civmec Ltd (SGX: P9D)

Civmec is an integrated construction and engineering service provider to the energy, resources, infrastructure, and marine cum defence sectors.

The group provides a range of services including heavy engineering, shipbuilding, site civil works, and maintenance.

Civmec reported an encouraging set of earnings for its fiscal 2023’s first half (1H FY2023) ending 31 December 2022.

Revenue rose 7.6% year on year to A$418.9 million with net profit jumping 25.1% year on year to A$28.3 million.

The group also managed to reduce its borrowings from A$74 million to A$50 million in the current period.

Its cash generated from operations catapulted from just A$3 million in 1H FY2022 to A$84 million in 1H FY2023.

The engineering group doubled its interim dividend from A$0.01 to A$0.02 and it will be paid out on 14 April 2023.

As of 31 December 2022, Civmec boasted an order book of A$1.2 billion, up 13% from the A$1 billion in the same period last year.

Last week, the group announced that it had secured another A$100 million of new contracts for clients in the resources sector.

ESR-Logos REIT (SGX: J91U)

ESR-Logos REIT owns a portfolio of 82 industrial properties across Singapore, Australia, and Japan with total assets of S$5.7 billion as of 31 December 2022.

In February, the REIT announced an equity fundraising exercise to raise a total of S$300 million via a private placement cum preferential offering of units.

The private placement was well-received, being three times over-subscribed, and new units were issued at S$0.33.

The preferential offer saw units being issued at S$0.325, a discount of S$0.005 to the private placement issue price.

As a result of this placement, ESR-Logos REIT announced an advanced distribution of S$0.00448 to be paid out on 14 April 2023.

The REIT manager has identified up to S$450 million of non-core assets to be divested over the next 12 months as part of its capital recycling initiative.

This fundraising will also greatly reduce the REIT’s gearing from 41.8% to 32.3%, allowing the manager to tap on debt funding for future acquisitions.

IHH Healthcare (SGX: Q0F)

IHH is an integrated healthcare group that offers patients a full and comprehensive range of medical services ranging from primary to quaternary as well as diagnostics, imaging, and rehabilitation.

The group employs 65,000 people and conducts its business through well-known brands such as Mount Elizabeth, Acibadem, Gleneagles, Parkway, and Fortis.

The group reported a mixed set of earnings for 2022.

Revenue crept up 5% year on year to RM 18 billion but net operating income fell by 13% year on year to RM 1.4 billion.

Net profit declined by 17% year on year to RM 1.5 billion.

Despite the weaker profit, IHH declared a final dividend of S$0.0216 for its Singapore shareholders, up 17% year on year.

This dividend will be paid on 28 April.

The group expects inpatient revenue to increase in 2023 as more patients stream back into hospitals.

Its asset in Singapore, Mount Elizabeth Hospital, is also undergoing a major refurbishment since January this year to meet Singapore’s growing healthcare needs.

IHH also intends to develop its laboratory business into a platform that can provide end-to-end services for patients seeking seamless care.