This Forgotten Blue Chip Raised its Dividends by 77%, is it Worth Another Look?

The Smart Investor

2 hours ago

A 77% dividend increase is hard to ignore. Especially if it comes from a blue-chip stock which is part of the Straits Times Index (SGX: ^STI). DFI Retail Group Holdings Limited (SGX: D01) raised its...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.itiger.com/news/2661222724"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2661222724\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2661222724?lang=en_US&edition=fundamental","thumbnail":"https://thesmartinvestor.com.sg/wp-content/uploads/2025/09/DFI-Retail-300x200.png","is_english":true,"pubTime":"2026-08-24 17:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2661222724","market":"sg","top_or_hot":-1,"title":"This Forgotten Blue Chip Raised its Dividends by 77%, is it Worth Another Look?","media":"The Smart Investor","content":"<div>\n<p>A 77% dividend increase is hard to ignore.\n\nEspecially if it comes from a blue-chip stock which is part of the Straits Times Index (SGX: ^STI).\n\nDFI Retail Group Holdings Limited (SGX: D01) raised its...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/this-forgotten-blue-chip-raised-its-dividends-by-77-is-it-worth-another-look/\">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 Forgotten Blue Chip Raised its Dividends by 77%, is it Worth Another Look?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; 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 Forgotten Blue Chip Raised its Dividends by 77%, is it Worth Another Look?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-24 17:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/this-forgotten-blue-chip-raised-its-dividends-by-77-is-it-worth-another-look/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A 77% dividend increase is hard to ignore.\n\nEspecially if it comes from a blue-chip stock which is part of the Straits Times Index (SGX: ^STI).\n\nDFI Retail Group Holdings Limited (SGX: D01) raised its...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/this-forgotten-blue-chip-raised-its-dividends-by-77-is-it-worth-another-look/\">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":"IE00BYTNYN87.SGD","symbol_name":"PINEBRIDGE ASIA EX JAPAN SMALL CAP EQUITY \"A5\" (SGD) ACC","start_time":0,"source_url":"https://thesmartinvestor.com.sg/this-forgotten-blue-chip-raised-its-dividends-by-77-is-it-worth-another-look/","article_id":"2661222724","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2025/09/DFI-Retail-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/this-forgotten-blue-chip-raised-its-dividends-by-77-is-it-worth-another-look/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2661222724","pubTimestamp":1787563800,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"A 77% dividend increase is hard to ignore, but is it sustainable?","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BYTNYN87.SGD":"PINEBRIDGE ASIA EX JAPAN SMALL CAP EQUITY \"A5\" (SGD) ACC","IE0008368411.USD":"FSSA ASIAN GROWTH \"I\" (USD) ACC","LU0877626530.USD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (USD) INC MONTHLY (G)","BK4211":"区域性银行","IE00B12V2V27.USD":"柏瑞亚洲小盘股A(除日本)","BK6034":"食品零售","IE00BYQNZ168.SGD":"PINEBRIDGE ASIA EX JAPAN SMALL CAP EQUITY \"A5CP\" (SGD) ACC","SPHQ":"Invesco S&P 500 Quality ETF","IE00B031HW06.USD":"FSSA ASIAN GROWTH \"I\" (USD) INC","SG9999011746.SGD":"PINEBRIDGE INTERNATIONAL FUNDS - ACORNS OF ASIA BA (SGD) ACC","LU1119993845.HKD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (HKDHDG) INC","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","VIG":"股利增长指数ETF-Vanguard","SG9999004220.SGD":"Nikko AM Shenton Asia Dividend Equity Fund  SGD","IE0009570106.USD":"FSSA ASIA OPPORTUNITIES \"I\" (USD) ACC","BK4585":"ETF&股票定投概念","LU0205439572.USD":"富达亚太股息基金","FCF":"第一联邦金融","D01.SI":"牛奶国际控股有限公司","BK6518":"食品和药品零售股","BK4588":"碎股"},"translate_title":"这只被遗忘的蓝筹股将股息提高了77%，值得再看看吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VIG":0.9,"FCF":1,"SPHQ":0.73,"D01.SI":1},"content_text":"A 77% dividend increase is hard to ignore.\n\nEspecially if it comes from a blue-chip stock which is part of the Straits Times Index (SGX: ^STI).\n\nDFI Retail Group Holdings Limited (SGX: D01) raised its interim dividend from US$0.035 per share to US$0.062 for the first six months of 2026 (1H 2026).\n\nThe percentage gain does not tell you where the increase came from. \n\nHere’s a clue: its profit did not grow by 77% over the same period. \n\nInstead, it was the board that changed its dividend payout policy to 70% in 2025, and the increase followed.\n\nWhere did the 77% come from?\nLet’s start with 2025. \n\nUnderlying profit attributable to shareholders reached US$270 million, up 35% year on year.\n\nFor the full year, the ordinary dividend rose 33% to US$0.14 per share. \n\nDFI also paid a special dividend of US$0.443 per share in October 2025, funded by asset sales. \n\nThat’s very nice. \n\nBut let’s keep the ordinary and special dividends apart. \n\nOnly the former tells you what the business is expected to pay again next year.\n\nNow let’s move to 1H 2026. \n\nUnderlying profit attributable to shareholders was US$117 million, up 11%. \n\nThat’s the headline figure. \n\nDFI also shared another comparison.\n\nUnderlying profit for its continuing businesses rose by 44%. \n\nThe continuing business figure leaves out Singapore Food, Mannings China, and the Robinsons Retail stake, all of which have been divested or closed. \n\nCan free cash flow carry the dividend?\nTo be able to pay sustainable dividends, a business must generate enough cash. \n\nFree cash flow is the metric to watch.\n\nDFI defines free cash flow (FCF) as operating cash flow after lease payments minus purchases of tangible and intangible assets (“normal capital expenditure”). \n\nIn 2025, DFI generated operating cash flow after lease payments of US$430 million, up 30%. \n\nFCF came in at US$281 million, up 78%. \n\nDividends paid during the year totalled around US$739 million, of which US$600 million was the special. \n\nTake that out, and the ordinary dividend was less than the FCF the business generated.\n\nThe first half of 2026 gives you less room. \n\nOperating cash flow after lease payments rose 16% to US$178 million. \n\nThe company spent more on capital, putting US$92.5 million into tangible and intangible assets in six months, up from US$63.3 million a year ago.\n\nAs a result, FCF slipped 5% to US$85 million. \n\nDFI said that it was investing more to boost its competitive position and drive long-term value for shareholders.\n\nFor 1H 2026, dividends paid to investors amounted to US$141 million, with another US$40 million spent on buybacks as part of its long-term incentive plan.\n\nThis total amount spent was more than its FCF for 1H 2026. \n\nAs a result, it had to dip into its cash and borrowings to fund the difference. \n\nThat brings us to its balance sheet. \n\nIn 2025, DFI aggressively reduced its debt. \n\nTo do so, the company divested its stakes in Yonghui and Robinsons Retail, as well as its Singapore Food business, generating total gross proceeds of around US$1 billion. \n\nThis amount was directed towards paying down borrowings, helping DFI end 2025 with a net cash position of US$70 million. \n\nHowever, as it spent more on dividends and buybacks for 1H 2026, it went back to a net debt position of US$22 million as of 30 June 2026.\n\nDFI will have to make up the difference in the second half of the year. \n\nWhere does DFI earn its money now?\nGroup revenue was flat at around US$8.9 billion in 2025. \n\nWhat changed was where the profit came from.\n\n\nDFI has four main operating divisions, namely Health and Beauty, Convenience, Food, and Home Furnishings. \n\nHealth and Beauty brought in US$227.7 million of divisional operating profit, up 8% year on year. \n\nThat is roughly 55% of the US$411.8 million earned across DFI’s four divisions, generated from US$2.6 billion of sales, or about 30% of group revenue. \n\nIn other words, if you shop at Mannings or Guardian, you’re helping DFI’s biggest profit contributor.\n\nConvenience earned US$96.7 million, down 6% year on year. \n\nThe culprit? \n\nCigarette volumes fell away after Hong Kong raised tobacco taxes in February 2024. \n\nHong Kong like-for-like sales dropped for 10 straight quarters, returning to growth in the second quarter of 2026. \n\nHow did DFI turn around the situation? \n\nBy pushing ready-to-eat meals, which made up 24% of Convenience sales in 2025.\n\nFood chipped in US$61.5 million in operating profit. \n\nHome Furnishings added US$25.9 million, up from US$16.1 million.\n\nDFI is also investing in the DFI Omni Platform to arm its store network with digital capabilities to deliver personalisation and greater convenience.\n\nThe retailer is also developing high-margin revenue streams in retail media via DFIQ Media while monetising its data via DFIQ Insights. \n\nSpecifics are scarce at the moment. \n\nThat said, DFI reported that digital turned profitable in the first half of 2026. \n\nE-commerce and DFIQ Media contributed around 35% of total revenue growth.\n\nDFIQ Media revenue tripled year on year while online sales penetration reached 6.9%.\n\nIn June 2026, DFI agreed to buy Cody HK, an outdoor advertising operator with rights across Hong Kong’s bus and tram networks, for HK$30.2 million, or about US$3.8 million. \n\nAt that price, you are looking at a capability purchase rather than a land grab.\n\nWhat should you watch from here?\nFirst, go back to Health and Beauty, because there is keen competition in this space. \n\nSegment sales for 1H 2026 grew 7% year on year to US$1.4 billion. \n\nHowever, the division’s operating profit was flat at US$109 million. \n\nPromotional spending in Southeast Asia ate the difference. \n\nSecond, investors should be watching DFI’s FCF generation for 2H 2026.\n\nFor the dividend to be sustainable, FCF needs to be enough to cover what the company pays out. \n\nThird, Hong Kong could have an influence on the group’s operating profit, and the cigarette decline has not finished working through. \n\nFinally, DFI has set 2028 goals of US$310 million to US$350 million in underlying profit and a return on capital employed of at least 15%. \n\nLook for signs that it can achieve its targets. \n\nGet Smart: Take a cue from Warren Buffett before you decide\nWarren Buffett keeps a tray on his desk with two capitalised words on it: TOO HARD.\n\nOne of the best investors of our generation has reserved a place for ideas not worth his time.\n\nBefore you work out where DFI sits in your holdings, work out whether it earns a place at all. \n\nThe higher payout is real. \n\nThe policy behind it is less than a year old and will need time to be tested through a full cycle.\n\nSo, do this every six months. \n\nPut the ordinary dividend next to free cash flow, leave the special out of it, and see how much room is left. \n\nThen ask whether that gap is wide enough for its dividend to be sustainable.\n\n2008. 2020. 2022. Three of the toughest stretches for Singapore markets in a generation. We found 6 SGX companies that paid a dividend every single year through all three. Our free report reveals the six companies and what allowed them to keep paying when others couldn’t. Click here to download now.\n\nFollow us on Facebook, Instagram, Telegram and YouTube for the latest investing news and analyses!\n\nDisclosure: Chin Hui Leong owns shares of DFI Retail Group.","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"}}}