3 Things That Investors Should Know About Riverstone Holdings Limited

Riverstone Holdings Limited (SGX: AP4) is a rubber gloves producer that makes gloves used in cleanrooms and for medical purposes.

Here are three things about the company that investors may want to know:

1. Consistent profitability over the last 10 years

Riverstone has been consistently profitable over the past decade. What’s more, the company’s revenue and earnings have shown strong growth in that period. The former had nearly sextupled from RM104 million in 2005 to RM581 million in the 12 months ended 31 March 2016; meanwhile the latter had soared by 537% from RM19.9 million to RM126.7 million over the same period.

2. History of growing dividends

As mentioned, Riverstone has shown some solid profit growth over the years. The company has also been sharing the spoils with its shareholders in the form of growing dividends.

The firm was listed in November 2006 and it paid its first annual dividend for its fiscal year ended 31 December 2006.  That year, its dividend was 1.29 sens. In 2015, that figure had jumped five-fold to 6.45 sens.

At Riverstone’s current share price of S$0.92, it has a dividend yield of 2.3% thanks to its 2015 dividend.

3. High insider ownership

As of 10 March 2016, Riverstone’s chief executive, Wong Teek Soon, controls a 50.75% stake in the company.

While this may mean that decisions on Riverstone’s future are essentially in the hands of Wong, his high ownership stake in the company may also help align his interests with that of the company’s minority shareholders.

Riverstone’s growth in dividends and its business results have helped generate strong returns for its shareholders. Since the close of its listing day, Riverstone’s shares have delivered a total return (including gains from reinvested dividends) of 884%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.