The dividend payout process is an essential financial mechanism where corporations share their profits with investors. These payments serve as a reward for shareholders and help build trust between businesses and investors. Some dividends are taxable, while others are tax-free, with international dividends typically subject to taxation.
As Singapore closed its financial year on March 31, 2024, the total dividend payout at the end of the fiscal year stood at 15%. This marks a substantial increase of 52.3% from the previous year’s 9.9%. The dividend includes a core payout of 11.2% from the previous year, along with a 3.8% realization value introduced this year. The payments will be distributed in two tranches, with a value of 1.9 cents per share to be paid on March 20, 2025. This amount will only be released upon member approval at the Annual General Meeting.
Dividend Payout Date March 2025
| Company | Dividend Yield | Quarterly Dividend (SGD) | Payout Date |
|---|---|---|---|
| Keppel | 5.56% | 0.08 | March 20, 2025 |
| SIA | 5.84% | 0.50 | March 8, 2025 |
| DBS | 5.60% | 0.50 | August 2025 |
| Singtel | 2.65% | 0.079 | August 20, 2024 |
| OCBC | 5.75% | 0.44 | August 12, 2024 |
Understanding Dividend Policy
The dividend policy of a corporation governs how profits are distributed to shareholders while maintaining financial stability. The policy balances investment, corporate growth, and capital management to ensure strong and sustainable returns.
Key Aspects of Dividend Policy:
- Core dividend comprises 70–90% of underlying profits.
- Value realization includes 3–6% of shares per annum.
- Additional capital is generated through asset recycling and growth initiatives.
- Helps in tracking the performance of investments and company profits.
Keppel Dividend Payout
Keppel Corporation, headquartered at Keppel Bay Tower, operates in multiple sectors including property, infrastructure, and asset management. The company maintains a steady dividend payout:
- Annual dividend yield: 5.56%
- Quarterly dividend: 0.08 SGD per share
- Market value: 6.11 SGD
SIA Dividend Payout
Singapore Airlines (SIA) has maintained a stable dividend payout, reflecting its financial performance:
- Dividend yield: 5.84%
- Final dividend per share: S$0.50
- Previous payout date: March 12, 2023
- Expected payout date: March 8, 2025
- Industry average yield: 4.6%
- Payout ratio: 76%
DBS Dividend Payout
DBS Group Holdings is an international banking corporation with taxable dividends. The company’s financial performance influences its dividend structure:
- Market capital per share: 35.60 SGD
- Annual dividend yield: 5.60%
- Quarterly dividend: 0.50 SGD per share
Singtel Dividend Payout
Singtel’s dividend policy includes a regular dividend payout along with special dividends:
- Ordinary dividend payout date: August 20, 2024
- Dividend per share: 7.9%
- Core dividend: 6%
- Value realization: 1.9%
- Annual yield: 2.65%
- Quarterly payout: 0.079 SGD per share
- Special dividend: 2% (paid in two tranches)
OCBC Dividend Payout
The Overseas Chinese Banking Corporation (OCBC) offers two dividend payouts each year:
- Dividend payout date: August 12, 2024
- Dividend per share: S$0.44
- Previous payout (May 2024): S$0.42
- Annual dividend yield: 5.75%
- Projected increase in shares: 6%
Frequently Asked Questions (FAQs)
1. What is a dividend payout?
A dividend payout is a portion of a company’s earnings distributed to its shareholders as a reward for their investment.
2. How often are dividends paid?
Dividends are typically paid quarterly, semi-annually, or annually, depending on the company’s policy.
3. Are dividends taxable in Singapore?
Local dividends are tax-free, but international dividends may be subject to taxation.
4. What determines the dividend yield?
The dividend yield is calculated based on the annual dividend amount divided by the stock’s current market price.
5. How can shareholders receive dividends?
Dividends are credited to shareholders’ bank accounts through PayNow, cheque payments, or direct transfers.
Dividend payouts are an essential component of corporate financial management, offering shareholders a return on investment. With significant increases in dividends across major Singaporean corporations, investors can expect stable financial returns. Shareholders should stay updated on dividend policies and payout schedules to maximize their earnings from these investments.
For further details, visit the official government financial portal or the respective company websites for up-to-date dividend policies and payout schedules.
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