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4 Quick Things to Know About Sheng Siong Group Ltd’s Dividend

Credit: Simon Cunningham

Sheng Siong Group Ltd (SGX: OV8) may be a recognisable company for many investors in Singapore. That’s because the company has over 40 stores here that are primarily located in the heartlands. Sheng Siong’s network makes it one of Singapore’s largest supermarket chains.

Investors may also recognise Sheng Siong due to the fact that it is a payer of regular dividends. The retailer was listed in August 2011 and since then, it has been paying a dividend in each year.

Sheng Siong’s latest annual report (for 2016) had four key pieces of information related to its dividend that investors may want to know.

1. Revenue is rising

The chart below shows Sheng Siong’s revenue from 2012 to 2016:


Source: Sheng Siong’s annual report

Revenue is the starting point of a viable business. The company has done well in this regard, increasing its revenue by 5.7% per year from $637.3 million in 2012 to $796.7 million in 2016.

2. Earnings per share (EPS) has risen too

Here’s a chart plotting Sheng Siong’s EPS from 2012 to 2016:


Source: Sheng Siong’s annual report

In a similar manner to Sheng Siong’s revenue, the company’s EPS has grown too. Over the timeframe under study, Sheng Siong’s EPS was up by over 8.5% per year.

3. A dividend commitment

Sheng Siong did not list down an official dividend policy in its 2016 annual report. But Lim Hock Eng, Sheng Siong’s chairman, did have this to say about the company’s 2016 dividend:

“The total payout amounted to about 89.9% of our net profit after tax. This is a testament to our commitment to rewarding our shareholders for their unwavering support since our listing in 2011.”

As you can see, Sheng Siong had paid out the majority of its net profit in 2016 as a dividend.

4. Historical dividend per share

Sheng Siong was listed on Singapore’s stock market in 2011, as mentioned earlier. It paid a dividend of S$0.0177 per share in that year and has since more than doubled its dividend to S$0.0375 per share in 2016.

The four points above serve as a useful starting point for studying Sheng Siong’s dividend. Other areas worth looking into include Sheng Siong’s balance sheet, the amount of free cash flow the company generates, its growth prospects, and more.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.