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4 Quick Things to Know About Challenger Technologies Limited’s Dividend

Challenger Technologies Limited (SGX: 573) has been a regular dividend payer.

Investors might be familiar with its stores that are located islandwide. Challenger Technologies sees itself as an IT products retailer of personal computers, notebooks, printers, tablets and mobile devices.

The retailer’s 2016 annual report had four key things, related to its dividend, that investors might want to know.

1. Revenue is on a downtrend

Source: Challenger Technologies’ Annual Report

Revenue is the starting point of a viable business. Challenger Technologies has seen its sales go as high as $385.4 million in 2013. Unfortunately, sales has been moving south from 2013 to 2016. 

2. Earnings per share has been volatile

Source: Challenger Technologies’ Annual Report

The retailer’s earnings per share (EPS) has been spotty over between 2012 and 2016. But from the above, we can see that EPS has gone as high as 5.29 cents before falling almost 8% year-on-year in 2016. 

3. The dividend policy

Companies usually pay out a certain portion of their EPS as dividend.

Challenger Technologies does not have a formal dividend policy though. From to its annual report, the firm said:  

“The Company does not have a formal dividend policy.

The form, frequency and amount of dividends will depend on the Company’s earnings, general financial condition, results of operations, capital requirements, cash flow, general business condition, development plans and other factors as the Directors may deem appropriate.”

Like any other company, Challenger Technologies will have several business priorities which will be competing for its financial resources. In the statement above, the management team listed out a number of things that will be considered.

4. Historical dividend per share

In general, the firm’s dividend per ordinary share has been on the uptrend over between 2013 and 2016. Dividend per ordinary share was 2.70 cents in 2016, up from 2.52 cents in 2013. In the first half of 2017, Challenger Technologies left its interim dividend unchanged.

The four points above serve as a starting point for studying Challenger Technologies’ dividend. You might want to look further into its balance sheet, and free cash flow history for further clues.  

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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 writer Chin Hui Leong doesn't own shares in any company mentioned.