Sembcorp Industries Ltd (SGX:U96) saw its stock soar by 3.09% during intraday trading on Thursday, as investors reacted positively to the company's announcement of a dividend increase and news of a potential green energy project in Malaysia.

The company revealed plans to raise its dividend to SGD0.17, up from last year's payment. This increase will bring the dividend yield to 3.7%, aligning with the industry average. The higher payout, scheduled for May 13th, comes as Sembcorp's earnings per share are projected to grow by 32.3% in the coming year, suggesting a sustainable payout ratio of around 29%.

Adding to the positive sentiment, Sembcorp Industries announced a partnership with Sarawak Energy and Prysmian for a hydropower project that could potentially supply Singapore with 1 gigawatt of green electricity from the Malaysian state of Sarawak. This collaboration, which also involves SP PowerInterconnect, a subsidiary of Singapore's SP Group, is subject to regulatory approvals but represents a significant step in Sembcorp's green energy initiatives.

The stock's strong performance reflects investor optimism about Sembcorp's growth prospects and its commitment to shareholder returns. As the company continues to expand its presence in sustainable energy projects and maintains a favorable dividend policy, market participants appear to be viewing Sembcorp Industries as an attractive investment in the utilities sector.