This Defensive Stock Is Paying 20% More Dividends in May

The Smart Investor

Apr 13

When investors learn that a company announced a 20% hike in its dividend, heads immediately turn. But when it does so while revenue grows just 1.8%, it raises a question worth exploring – how is the...

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investors learn that a company announced a 20% hike in its dividend, heads immediately turn. \n\nBut when it does so while revenue grows just 1.8%, it raises a question worth exploring – how is the...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/this-defensive-stock-is-paying-20-more-dividends-in-may/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>This Defensive Stock Is Paying 20% More Dividends in May</title>\n<style 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margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThis Defensive Stock Is Paying 20% More Dividends in May\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-13 11:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/this-defensive-stock-is-paying-20-more-dividends-in-may/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When investors learn that a company announced a 20% hike in its dividend, heads immediately turn. \n\nBut when it does so while revenue grows just 1.8%, it raises a question worth exploring – how is the...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/this-defensive-stock-is-paying-20-more-dividends-in-may/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VIG","symbol_name":"股利增长指数ETF-Vanguard","start_time":0,"source_url":"https://thesmartinvestor.com.sg/this-defensive-stock-is-paying-20-more-dividends-in-may/","article_id":"2627485129","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2026/02/Raffles-medical-group-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/this-defensive-stock-is-paying-20-more-dividends-in-may/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2627485129","pubTimestamp":1776051000,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Raffles Medical Group’s 20% dividend increase highlights how strong cash flow and balance sheet strength can drive payouts beyond revenue growth.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"VIG":"股利增长指数ETF-Vanguard","BK4588":"碎股","BK6511":"医疗保健服务概念","BK4585":"ETF&股票定投概念","BK6092":"保健护理机构","BSL.SI":"莱佛士医疗"},"translate_title":"这只防御性股票5月份股息增加20%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BSL.SI":1,"VIG":0.68},"content_text":"When investors learn that a company announced a 20% hike in its dividend, heads immediately turn. \n\nBut when it does so while revenue grows just 1.8%, it raises a question worth exploring – how is the payout growing so much faster than the top line? \n\nFor Raffles Medical Group (SGX: BSL), or RMG, the answer lies in a combination of rising profits, surging free cash flow, and a rock-solid balance sheet. \n\nAs investors, we want to know if a dividend hike is a one-off treat or a sustainable reward.\n\nRMG’s latest results for the full year 2025 (FY2025) provide some very reassuring answers.\n\nEfficiency over top-line expansion\nThe headline revenue for RMG was S$765.3 million, a modest step up from the previous year. \n\nHowever, as many experienced investors know, revenue is vanity while profit is sanity. \n\nBeneath that quiet top line, the group’s profitability improved markedly. \n\nNet profit rose 13.4% year on year (YoY) to S$70.6 million, and operating profit climbed 9.5% to S$90.4 million.\n\nThis tells us that management is running a tight ship, extracting more value from every dollar of revenue. \n\nThis efficiency is what paved the way for the dividend per share to jump to S$0.03, up from S$0.025 in 2024. \n\nManagement noted that this payout represents 84% of its sustainable profit, a clear signal that they believe in the long-term earning power of the business.\n\nCash flow: The lifeblood of dividends\nIf dividends are the fruit, free cash flow is the tree that bears them. \n\nWithout actual cash generation, a dividend hike is just an accounting exercise. \n\nThis is where RMG truly shines.\n\nThe group generated S$91.3 million in free cash flow for 2025, a massive 39.7% increase YoY.\n\nThis surge was driven by two forces working in tandem. \n\nFirst, operating cash flow rose 17.5% to S$101.3 million. \n\nSecond, the group’s capital expenditure fell by 52% to just S$10.0 million. \n\nFor a defensive stock, seeing free cash flow comfortably exceed dividend obligations provides a layer of safety that income-focused investors should find very attractive. \n\nIt confirms that the 20% hike coming this May is backed by actual cash in the bank.\n\nResilience across core divisions\nThe engine room of the group remains the Hospital Services division. \n\nRevenue grew by 3.5% to S$357.8 million, but segment profit rose even faster at 15.3%. \n\nThis outsized growth was supported by steady patient volumes and higher bill sizes, even as the team managed costs effectively. \n\nHaving a core division that can expand margins while providing an essential service is exactly the kind of financial umbrella you want in a defensive portfolio.\n\n\nWhile Healthcare Services hit a small speed bump, there is a silver lining over at Raffles Health Insurance. \n\nThe insurance arm is finally turning a corner, growing its revenue by 4.1% and successfully hacking its losses in half.\n\nIf this trajectory continues, what was once a drag on the group could soon become a contributor to the bottom line.\n\nBuilding for the future in China\nRMG is also playing the long game with its expansion into China. \n\nRevenue there is growing, and the group recently acquired the remaining 30% stake in its Shanghai hospital, making it a wholly owned subsidiary. \n\nIt is clear the group isn’t just resting on its laurels. \n\nBetween strategic partnerships with local hospitals and the upcoming launch of the Raffles Healthy Longevity Centre in early 2026, RMG is actively expanding its footprint.\n\nBy integrating its international standards with local expertise, RMG is positioning itself to capture the rising demand for premium healthcare in North Asia.\n\nA fortress balance sheet for peace of mind\nFinally, we must look at the balance sheet. \n\nIn an era where debt can be a burden, RMG is sitting in an enviable position. \n\nAs of 31 December 2025, the group held net cash of S$261.1 million. \n\nWith S$310.8 million in cash against just S$49.7 million in total debt, the group has a massive safety margin.\n\nThis financial strength means that even if market turbulence hits, the group has the cushion to sustain its payouts. \n\nIt also gives management the flexibility to pursue new growth opportunities without having to worry about high interest rates or stretching its finances too thin.\n\nIt is the ultimate financial safety net for the conservative investor.\n\nGet Smart: A dividend hike backed by cash, not just confidence\nRMG’s 20% dividend increase is not just a feel-good headline for May. \n\nIt is a decision rooted in a near-40% surge in free cash flow and a net cash position that exceeds a quarter of a billion dollars. \n\nBy focusing on business fundamentals – cash flow, profit margins, and a “fortress” balance sheet – the group has shown that it can grow its payouts even when the top-line growth seems quiet. \n\nFor investors seeking defensive income, this combination of resilience and growth deserves a closer look. \n\nThinking like a business owner means looking past the surface, and in RMG’s case, the foundation looks incredibly solid.\n\nOne Singapore bank has quietly become one of the strongest income engines in the market. Its dividends have grown at 16.6% a year while others were pulling back. That level of consistency can change a retirement plan entirely. Our FREE 2026 Dividend Game Plan explains why this bank keeps lifting payouts and why many long-term investors rely on it for stable income. Download your free copy today.\n\nFollow us on Facebook, Instagram and Telegram for the latest investing news and analyses!\n\nDisclosure: Calvina L. does not own any of the stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}