The Motley Fool

3 Companies to Hold for the Next 10 Years

In a recent Facebook post of ours, we asked our readers:

“What are the three stocks you’re going to hold onto for the next ten years?”

We received some great responses. Here are three Foolish companies our readers like.

Company No. 1

The first company on the list is DBS Group Holdings Ltd (SGX: D05), the largest Singapore-listed company by market capitalisation. It’s not hard to see why our readers like DBS.

From 2014 to 2018, the bank’s total income grew from S$9.62 billion to S$13.18 billion, up 8% on an annualised basis. Net profit attributable to shareholders, without one-off items, improved close to 10% per year, from S$3.85 billion in 2014 to S$5.63 billion in 2018.

Dividends, though, have grown by a faster clip than earnings. They increased by an impressive 20% per year, from S$0.58 per share in 2014 to S$1.20 per share in 2018.

At DBS’s current share price of S$26.98, it has a price-to-book (P/B) ratio of 1.5 and a dividend yield of 4.4%.

Company No. 2

The next company that our readers like is another bank, Oversea-Chinese Banking Corporation Limited (SGX: O39). OCBC is another strong candidate in an investor’s portfolio.

OCBC’s total income grew 3.9% annually from S$8.34 billion in 2014 to S$9.70 billion in 2018. Net profit attributable to shareholders rose 4% per year, from S$3.84 billion in 2014 to S$4.49 billion in 2018. As for OCBC’s dividends, they went up from S$0.36 per share in 2014 to S$0.43 per share in 2018, up 4.5% annually.

OCBC’s current share price is S$11.75. At that price, it has a P/B ratio of 1.2 and a dividend yield of 3.7%.

Company No. 3

Raffles Medical Group Ltd (SGX: BSL) is the third company on the list of favourite shares. Raffles Medical is a private healthcare group with operations in 14 cities spread across five countries. In all, it serves more than 2 million patients and 7,000 corporate clients.

Over the past five years, Raffles Medical’s revenue and net profit have grown steadily, endearing the company to investors.Source: Raffles Medical Group Ltd 2018 annual report

From 2014 to 2018, revenue improved by 6.9% per year, from S$374.6 million to S$489.1 million. Net profit attributable to shareholders inched up by 1.2% yearly, from S$67.6 million to S$71.1 million during the same period.

Just like DBS, Raffles Medical’s dividends per share grew at a faster rate than its earnings did. Dividends rose 8% per annum from S$0.0183 per share in 2014 to S$0.0250 per share in 2018.

At Raffles Medical’s current share price of S$1.09, it has a price-to-earnings ratio of 27 and a dividend yield of 2.3%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of DBS Group Holdings Ltd, Oversea-Chinese Banking Corporation Limited, and Raffles Medical Group Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Raffles Medical Group Ltd.