Income Investor Alert: These 4 Non-REIT Companies Pay Quarterly Dividends
Income investors have it good in Singapore, as many REITs are known to pay dividends on a quarterly basis. The allure of quarterly dividends is that investors are able to receive a regular income from their investments that can be used for expenses or channelled back into the stock market for compounding.
However, investors should note that REITs as an asset class consist solely of real estate, and it may not be ideal to expose yourself to only one specific asset type. It’s good to diversify your portfolio into many industries, as property itself is cyclical and may also suffer from economic downturns.
Income investors who wish to continue to receive regular quarterly dividends but want to branch out from REITs should consider the following four non-REIT companies that dole out regular and consistent quarterly payments.
1. DBS Group Holdings Ltd
DBS Group Holdings Ltd (SGX: D05) is one of Singapore’s three largest banks. The group provides a wide and comprehensive range of banking services to individuals and corporations.
As Singapore’s leading bank, DBS holds the torch for displaying continued growth and resilience in the face of macroeconomic uncertainty. The bank has been reporting record profit over the last few years even as major economies around the world face a slowdown. Beginning in 2019, the bank declared it would pay out a quarterly dividend of S$0.30 for a total of S$1.20 per share in dividends for the full year.
2. Singapore Exchange Limited
Singapore Exchange Limited (SGX: S68), or SGX, is Singapore’s sole stock exchange. The group provides a platform for the buying and selling of securities such as equities, fixed income, and derivatives. SGX also provides listing, clearing, and settlement services to listed companies.
SGX has had a long history of paying out quarterly dividends and has been doling out a quarterly dividend since 2006. Until FY 2018 (the bourse has a 30 June year-end), SGX has been paying a large final dividend in its Q4, with smaller dividends in the first three quarters. However, from FY 2019, the group has decided to declare a similar level of dividend for each quarter, and currently, this stands at 7.5 Singapore cents for a total annual dividend of S$0.30.
3. iFast Corporation Limited
iFast Corporation Limited (SGX: AIY) is a financial technology (fintech) company that owns a platform for the buying and selling of unit trusts, fixed income securities, and equities. iFast is one of the earliest fintech firms in Singapore and started its business way back in 2000. The group has assets under administration of S$9.04 billion as of 30 June 2019 and is present in Singapore, Malaysia, Hong Kong, China, and India.
iFast has been paying a regular quarterly dividend since its IPO in December 2014. The group paid a dividend of 0.75 Singapore cents for its first three quarters and a 0.9 Singapore cent dividend in the final quarter. The total annual dividend stands at 3.15 Singapore cents.
4. Silverlake Axis Ltd
Silverlake Axis Ltd (SGX: 5CP) provides software and digital economy solutions to the banking, insurance, and retail industries. Its main product is the Silverlake Integrated Banking Solution (SIBS), and the group has more than 380 enterprise customers in over 80 countries.
The group pays a quarterly dividend that is not consistent but varies according to how the business performs. In the previous financial year (ended 30 June 2019), the group paid out 0.3 Singapore cents in the first quarter, 0.4 Singapore cents in each of the next two quarters, and 0.7 Singapore cents in the final quarter. This came up to a total of 1.8 Singapore cents for the full fiscal year.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of DBS Group Holdings Ltd, Singapore Exchange Limited, and iFast Corporation Limited. Motley Fool Singapore contributor Royston Yang owns shares in Singapore Exchange Limited and iFast Corporation Limited.