Boustead Singapore (SGX:F9D) Could Be A Buy For Its Upcoming Dividend

Sun, Aug 3, 2025, 8:33 PM 4 min read

Boustead Singapore Limited (SGX:F9D) stock is about to trade ex-dividend in 3 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. In other words, investors can purchase Boustead Singapore's shares before the 8th of August in order to be eligible for the dividend, which will be paid on the 26th of September.

The company's next dividend payment will be S$0.06 per share. Last year, in total, the company distributed S$0.055 to shareholders. Last year's total dividend payments show that Boustead Singapore has a trailing yield of 3.5% on the current share price of S$1.58. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Boustead Singapore paid out a comfortable 28% of its profit last year. A useful secondary check can be to evaluate whether Boustead Singapore generated enough free cash flow to afford its dividend. Luckily it paid out just 20% of its free cash flow last year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

See our latest analysis for Boustead Singapore

Click here to see how much of its profit Boustead Singapore paid out over the last 12 months.

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Boustead Singapore's earnings have been skyrocketing, up 25% per annum for the past five years. Boustead Singapore is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend.