S'pore dividend growth forecast among worst in Asia-Pac

Markit sees tiny 0.3% rise in payout this year; local banks will still account for biggest share of pool

Published Wed, Jan 6, 2016 · 09:50 PM

Singapore

AS if the news isn't bad enough already, retirees here should brace themselves - for it seems Singapore stocks will see a miserly increase in this year's ordinary dividends.

According to financial services data provider Markit, Singapore is forecast to distribute S$15.865 billion in 2016 - up a meagre 0.3 per cent from 2015's S$15.824 billion. If specials are included, the distribution is projected to fall 2.5 per cent to S$16.2 billion, from S$16.611 billion last year.

It's the worst among Asia Pacific countries for positive dividend growth - excluding Australia and Indonesia, which are forecast to cut payouts, said Markit in the 2016 dividend outlook for 13 Asia Pacific countries.

The cut in special dividends is not restricted to Singapore, Markit forecasts that total aggregate dividends for Asia Pacific will decrease 1.7 per cent to US$393.3 billion while ordinary dividends are expected to continue to grow for a fifth consecutive year to US$391.1 billio…