The Motley Fool

Chart of the Week: SPH’s Dividend Track Record Not Pretty

Singapore Press Holdings Limited’s (SGX: T39) latest financial performance made news recently (pun not intended). The media giant’s third-quarter revenue tumbled 1.6% to S$246.1 million while its net profit plunged 44.1% to S$26.2 million. To make things worse, SPH took a goodwill impairment of S$21.5 million for its Orange Valley aged care business.

All these have caused the company’s shares to fall 8.4% for the week to end Friday at S$2.28. Over the longer term of three years, SPH shares have delivered a loss of more than 30% for shareholders, after adjusting for dividends, as noted by my Foolish colleague Chong Ser Jing.

Speaking of dividends, the company’s dividend payout to shareholders has been on what seems like an unstoppable ride down. Total dividend per share in FY2010 (SPH has a 31 August year-end) was S$0.27 but that has fallen to S$0.125 for the trailing twelve months (TTM). With a dwindling free cash flow per share of S$0.493 in FY2010 to S$0.117 for TTM, it’s no surprise that dividends went south too.

Source: SPH annual reports (*Note: FY2013 total dividend per share excludes a special dividend per share of S$0.18 paid due to the spin-off of SPH REIT)

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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 Sudhan P doesn’t own shares in any companies mentioned.