Boosted by growing earnings and a "strong" outlook five years out, ST Engineering has revised its dividend policy.
The company plans to pay four cents per share for the first three quarters and a final dividend of 6 cents — making a total of 18 cents.
In contrast, the company has been paying four cents per quarter for the past few years.
In its most recent 4QFY2024, ST Engineering raised its final payout to 5 cents, giving a planned FY2024 total of 17 cents.
The revised payout levels will be subjected to shareholders' approval.
In addition, as it aims to achieve progressively higher full-year earnings, it will pay out about one-third of its y-o-y increase in net profit as incremental dividends for FY2026 onwards.
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The company explains that this is driven by its bid to improve total shareholders' return amid growing revenue and earnings.
ST Engineering shares closed at $6.32 on March 17, up 1.77% for the day but up 35.91% year to date, as it rode on renewed interest in defence stocks.
