There are several ways a company can grow its dividends.
The first, and more obvious way, is to enjoy a rise in demand for its goods and services.
This higher demand then translates to better profits and cash flow so that the business can afford a larger dividend.
Another method is for the company to conduct acquisitions to immediately grow its presence and increase its profits and cash flows.
Acquisitions, if done right, can be attractive as they allow an organisation to quickly grow its market share and boost its profits.
Income-driven investors can turn their attention to these four Singapore names that have recently announced acquisitions.
These acquisitions, in turn, increase the chance that these companies will declare a higher dividend.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a real estate investment manager with around S$124 billion of real estate assets under management (AUM) and S$86 billion worth of real estate funds under management....