Major corporations in Singapore have been actively repurchasing their own shares.

In the first four months of 2026, over 50 primary-listed companies bought back shares worth S$911 million on the open market. This represents a significant increase from approximately S$750 million a year earlier and S$343 million two years ago.

Three blue-chip companies were at the forefront of this activity: Singapore Telecommunications Limited (SGX: Z74), Oversea-Chinese Banking Corporation Limited (SGX: O39), and Keppel Ltd (SGX: BN4). Together, they accounted for S$636 million of the total buyback value.

While the scale of buybacks is notable, dividend-focused investors may find a more pertinent question is: what is financing these substantial repurchases, and can the same sources sustain the companies' dividend distributions?

Singapore Telecommunications: A Share Buyback Funded Separately from Dividend Operations

Singapore Telecommunications led the local market, repurchasing 61.2 million shares for about S$300 million.

This buyback is part of the company's S$2 billion value realisation programme. Importantly, it is not funded by current operating earnings but by excess capital generated from recycling assets.

This distinction is crucial for dividend investors. The company's payout structure already separates these two streams.

For the first half of the 2026 fiscal year, the telecom declared an interim dividend of S$0.082 per share. This consisted of a core dividend of S$0.064 and a value realisation dividend of S$0.018, representing a year-on-year increase of 17.1%.

The core dividend is supported by operational performance, while the value realisation component is linked to the capital recycling pipeline. Both financial engines are currently active.

Underlying net profit for the third quarter of FY2026 rose 9.5% to S$744 million, driven largely by a 15.4% increase in post-tax contributions from regional associates, notably Airtel and AIS. Operating profit at NCS and Optus grew by 32% and 27%, respectively.

During the quarter, the company sold a 0.8% direct stake in Airtel, generating net proceeds of S$1.5 billion, which provides additional capital for the recycling programme.

A note of caution: mobile service revenue in Singapore declined by 11%, attributed to price competition and weaker roaming revenue.

Oversea-Chinese Banking Corporation: Record Revenue Underpins a Policy-Driven Payout

Oversea-Chinese Banking Corporation ranked second, buying back 9.6 million shares for approximately S$209.9 million.

This repurchase is part of a S$2.5 billion capital return plan, which management confirmed remains on track for completion in the 2026 fiscal year.

The dividend outlook is anchored by policy, with the bank reaffirming its guidance for a 50% ordinary dividend payout ratio for FY2026.

This policy is supported by strong financials. Total income for the first quarter of 2026 increased 5% year-on-year to S$3.8 billion, while net profit attributable to shareholders also grew 5% to S$1.97 billion. The composition of this income is noteworthy.

Net interest income fell 5% to S$2.2 billion as the net interest margin compressed by 28 basis points to 1.76%, pressured by lower benchmark rates. This decline was partially offset by a 9% constant-currency growth in customer loans to S$347 billion.

Asset quality remained stable, with the non-performing loan ratio holding at 0.9% for the eighth consecutive quarter.

Non-interest income surged 23% to S$1.6 billion, now contributing over 40% of total income. Wealth management fees, which are largely recurring and linked to assets under management, climbed 34%. Trading income, a more cyclical revenue stream, rose 10%.

It is important to note that the bank does not declare a dividend following its first-quarter results.

Keppel Ltd: A Company in Transition with Future Dividend Clues

Keppel Ltd completed the top three, repurchasing 10.5 million shares for around S$126.5 million.

The dividend picture here comes with a qualification: the first-quarter 2026 update was voluntary, and the company did not disclose specific figures for revenue, profit, total funds under management, or free cash flow. Investors must infer the health of its operations from other indicators.

These signals are mixed but lean positive. Net profit for the restructured company was slightly lower year-on-year, as stronger earnings from the Infrastructure and Connectivity segments were offset by weaker contributions from Real Estate, which had benefited from valuation and divestment gains a year earlier. Recurring income showed a slight increase.

A brighter spot was the shift to a free cash inflow position in Q1 2026, compared to an outflow in the same period last year. Distributions and proceeds from divesting sponsor stakes have already reached nearly three-quarters of the total received in the full 2025 fiscal year.

Asset management fees increased 13% to S$108 million, with growth across all business segments. Year-to-date asset monetisation reached S$385 million, progressing toward the full-year 2026 target of S$2–3 billion.

Consistent with its practice, Keppel does not declare a first-quarter dividend, adhering to its half-year and full-year dividend schedule. Therefore, a clearer signal regarding dividends for investors will come later in the year.