Singapore Exchange Limited (SGX: S68) or SGX has paid a dividend since its fiscal year 2001.
I have owned its stock since 2018.
SGX is in my personal portfolio for one key reason: its dividends.
The stock exchange operator does have a long dividend track record.
However, that alone does not mean that it will continue paying out a dividend as it has since 2001.
Today, I would like to do a simple three-step dividend health check-up to see whether I can count on SGX to continue paying me in the coming years.
Financial check #1: Operating revenue and net profits
Revenue is the lifeblood of any company.
Everything starts with the dollars coming through the doors of the company. SGX recorded solid sales growth between fiscal 2010 and fiscal 2021, as seen in the graph below.
Source: TIKR
Most of the top-line growth has flowed down to the bottom line....