As SATS released its full results on Friday, it also concluded the Q2 reporting season of all the 63 companies on my watchlist. About 60% of them declared dividends and the total amount of dividend declared is 10% more than that of Q1. Out of these 60%, 10% was disappointments, 20% brought upside surprises while 30% were within expectations.
The major disappointments were Starhub and SPH.
Starhub’s dividend dropped from 4 to 2.5 cents. It is now that I found that Starhub had changed their dividend policy from a fixed one to a variable one where it will distribute 80% of net profit each year. 2.5 cents is the result of the change.
Dividend of SPH also dropped from 6.0 to 5.5 cents. Less drastic but still painful.
This 5.5 cents is the lowest dividend that they had declared in Q2 for the last 15 years. It really reflected the tough operating environment that they are in and their need for cash to fund their business model transformation and acquire property assets and M1.
The biggest pleasant surprise came from DBS which changes its dividend distribution from twice to four times a year.
DBS is still standing by its $1.20 full year dividend, i.e. 30 cents per quarter. At this dividend amount, the dividend yield is almost 4.6%. Really Nice !!
Most remained within or exceed expectations – which is great!
But what was better was that the dividend from Q2 is slightly more than Q1, which means passive income comes in regularly through the 6 months.
I hope Q3 and Q4 will bring the same amount of dividend and continue to even out the dividend income profile through the 12 months.
I will track this closely and let you know by end of Q3 and Q4.
Take care folks and enjoy the long weekend (if you are in this part of the world).