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Investors Take Note: These Are 2 Companies With Strong Profit And Dividend Growth Over The Last 5 Years

There’s a saying that goes, “You can’t have your cake and eat it too.” But in investing, it is possible to get the best of both worlds.

The ‘worlds’ I’m talking about are fast-growing profits and rising dividends. You see, there are companies in Singapore’s stock market that have managed to churn out solid profit- as well as dividend-growth.

Here are two companies that have done that: Gloves manufacturer Riverstone Holdings Limited (SGX: AP4) and healthcare services provider Raffles Medical Group Ltd (SGX: BSL).

From 2011 to 2015, Riverstone’s earnings per share soared by 180% from RM0.061 to RM0.170, which equates to an annualised growth rate of 29%. Along the way, the company’s dividend had more than doubled from 2.95 sens to 6.45 sens.

Coming to Raffles Medical, its earnings per share had stepped up by 6.3% annually from S$0.0317 to S$0.0405 over the same block of time as we had seen with Riverstone. As for the healthcare provider’s dividends, it has increased by 50% from 1.33 Singapore cents per share to 2.0 Singapore cents.

Given the pair’s business performance, it’s no real surprise to find that their investors have enjoyed some good returns over the last five years. From 2011 to 2015, Riverstone and Raffles Medical’s shares have delivered total returns (where gains from reinvested dividends are factored in) of 427% and 119%, respectively.

Yet, past history does not guarantee that the future will continue to be the same. For investors, the main question that needs to be considered is whether the two companies can sustain their earnings and dividend growth in the years ahead.

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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.