Increasing profits paired with higher dividend payouts represent the ideal scenario for income-focused investors.

However, growth in earnings does not always lead to a proportional rise in shareholder distributions.

There are instances where a significant profit surge results in only a marginal dividend hike.

Conversely, even a modest increase in profits can sometimes fund a meaningful boost to dividends.

The key factor is what occurs between the company's revenue generation and the final payout to investors.

The following are three major Singapore-listed companies that have recently announced both higher profits and increased dividends.

Keppel DC REIT (SGX: AJBU)

Keppel DC REIT demonstrated the most robust growth among the three.

For the first quarter of 2026, the data center real estate investment trust's net property income increased by 19.4% year-over-year to S$105.2 million.

Distributable income rose 20.7% to S$74.6 million, resulting in a distribution per unit of S$0.02833, which is 13.2% higher than the same period last year.

This growth was driven by contributions from the acquisition of Tokyo Data Centre 3 and the remaining stakes in Keppel DC Singapore 3 & 4, alongside higher rental income from contract renewals and escalations.

These positive factors more than compensated for the divestment of the Kelsterbach Data Centre in Germany.

A notable figure is the rental reversion rate of approximately 51% for contracts renewed during the quarter.

This indicates that the REIT's existing properties are leased at rates significantly below current market levels, presenting a clear opportunity for future organic growth in distributions per unit.

Furthermore, the company's financial position strengthened.

Aggregate leverage decreased to 35.1%, providing around S$550 million in available debt capacity.

The average cost of debt declined by 40 basis points year-over-year to 2.6%, with approximately 84.8% of borrowings on fixed interest rates.

DBS Group Holdings (SGX: D05)

DBS reported a record total income of S$5.95 billion for the first quarter of 2026, marking a 1% increase from the previous year.

This 1% figure, however, does not fully capture the underlying performance.

Net interest income declined by 5% year-over-year to S$3.49 billion as the net interest margin contracted by 23 basis points to 1.89%, influenced by lower SORA and SOFR benchmark rates.

This was offset by a 10% jump in non-interest income to S$2.45 billion, with wealth management fees reaching a record S$907 million and treasury customer sales hitting a record S$592 million.

In essence, while one revenue stream moderated, another accelerated.

Net profit saw a marginal 1% year-over-year increase to S$2.93 billion, and the return on equity remained stable at 17.0%.

For income investors, the dividend announcement provides clearer insight.

The board declared a first-quarter 2026 dividend of S$0.81 per share, an 8% increase from the S$0.75 paid a year earlier.

This dividend comprises an ordinary component of S$0.66 and a Capital Return dividend of S$0.15.

It is important to note that the Capital Return dividend represents a discretionary distribution of excess capital.

Its level may vary each quarter, a factor investors should consider when projecting future income.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust is Singapore's largest suburban retail-focused real estate investment trust.

For the first half of its fiscal year ending September 30, 2026, net property income grew by 20.2% year-over-year to S$160.8 million.

The distribution per unit for the period was S$0.06136, a 1.4% increase from the prior year.

This discrepancy—a sharp rise in NPI alongside a modest DPU increase—can be explained by the acquisition of the Northpoint City South Wing.

This acquisition was the primary driver behind the revenue surge but also expanded the total number of units in issue, diluting the per-unit earnings benefit.

The trust's operational metrics, however, present a more positive picture.

Committed occupancy across its retail portfolio reached 99.8%.

Rental reversions were a healthy +6.5%, with a tenant retention rate of 87%.

Shopper footfall and tenant sales increased by 1.8% and 3.2% year-over-year, respectively.

Two planned asset enhancement initiatives are expected to provide future growth.

The enhancement at Hougang Mall is on schedule for completion by September 2026, targeting a 7% return on investment.

A larger project at NEX is set to commence in May 2026, which will add 44,000 square feet of net lettable area at a capital expenditure of S$90 million.