SINGAPORE (Jan 13): Big companies with resilient earnings are usually relied upon to pay consistent dividends. But that consistency tends to drive up their share price and drive down their dividend yields.

On the other hand, smaller or cyclically oriented companies are often generous dividend payers who can also offer very high yields. But that means investors need to tolerate periods of drought or adopt a tactical investing approach.

One such company is Hiap Seng Engineering, who appears to be coming out of its dividend drought. Hiap Seng does engineering and construction works and maintenance works for the petroleum and petrochemicals industries.

Hiap Seng had skipped a dividend payment in 2014 after the group made losses that same year. But, it quickly resumed its payouts in FY2015 even while losses widened. Now, within its current financial year to March, the company has already declared an interim dividend of 0.5 cent per ordinary share.

How did Hiap Seng turnaround its business so quickly? Will its dividend payouts continue for the coming years? Read about it in the latest issue of this week’s copy of The Edge Singapore (Issue 762, Jan 16), available at major bookstores, 7-11 stores, and selected petrol stations.