3 Things Investors Should Know About Vicom Limited Now

Vicom Limited (SGX: V01)  is a leading provider of vehicle testing and inspection services in Singapore. The company also provides a wide range of non-vehicle related technical testing and inspection services. The company is majority-owned by land-transport giant ComfortDelGro Corporation Ltd (SGX: C52).

Here are three things about Vicom that investors may be interested to know:

1. Consistent profit growth over last decade

Vicom has been consistently profitable in the 10 years from 2005 to 2015. But that’s not all.

Vicom's earnings per share table
Source: S&P Global Market Intelligence

As the table above shows, the company has displayed profit growth in each year in that timeframe while also more than tripling its profit.

2. Market-beating and consistently high return on equity

The median trailing return on equity for the 30 companies that make up Singapore’s market barometer, the Straits Times Index (SGX: ^STI), is just 10.1%, according to data from S&P Global Market Intelligence (I’ve excluded business trusts and real estate investment trusts).

For Vicom, its trailing return on equity is much higher at 20.3%.

Vicom's returns on equity from 2005 to 2015
Source: S&P Global Market Intelligence

The chart above also plots Vicom’s return on equity from 2005 to 2015. You can see that the company’s return on equity has never fallen below 15.7% in the timeframe under study.

3. History of growing dividends

Vicom’s not only been consistently profitable over the past decade, it has also paid a dividend in each year. While those dividends have not grown in every year, they have climbed from S$0.085 per share in 2005 to S$0.285 per share in 2015.

Vicom's dividend per share table
Source: S&P Global Market Intelligence

At Vicom’s current share price of $5.78, it has a dividend yield of 4.9% thanks to its 2015 dividend.

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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.