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3 Things Investors Should Know About Jardine Matheson Holdings Limited Now

Jardine Matheson Holdings Limited (SGX: J36) can be considered to be a conglomerate.

The company holds an 83% stake in Jardine Strategic Holdings Limited (SGX: J37) which in turn holds majority ownership of Pan-Asian bricks-and-mortar retailer Dairy Farm International Holdings Ltd (SGX: D01), Hong Kong-focused real estate investor and developer Hongkong Land Limited (SGX: H78), and hotelier Mandarin Oriental International Limited (SGX: M04).

Jardine Strategic also owns a majority stake in Jardine Cycle & Carriage Ltd  (SGX: C07). The bulk of the latter’s business resides in its 50% interest in the Indonesia-listed Astra. Astra has its fingers in many pies, including automobile distribution, palm oil production, financial services, and more.

Here are three things about Jardine Matheson that investors may want to know:

1. Growing profits over the past decade

Over the past 10 years from 2005 to 2015, Jardine Matheson has been consistently profitable. In addition, those profits have also climbed from US$1.24 billion to US$1.80 billion. In that period, its revenue has also tripled from US$11.9 billion to US$37 billion.

One important trait of Jardine Matheson’s business that may help explain that consistency is its diversity.

2. A history of rising dividends

Jardine Matheson is a company that has paid an annual dividend in each year without fail from 2005 to 2015. But there’s more: The company has managed to either grow or maintain its dividends in that time frame as you can see in the following table.

Jardine Matheson's dividend table
Source: S&P Global Market Intelligence

At its current share price of US$58.50, Jardine Matheson has a dividend yield of 2.5% thanks to its 2015 dividend.

3. Valuation

Jardine Matheson’s share price gives it a price-to-earnings ratio of 12.1.

Jardine Matheson's PE ratio since 1 July 2011
Source: S&P Global Market Intelligence

As the chart above illustrates, the company’s valuation is currently near the higher end of where it has been over the past five years.

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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.