Singapore’s benchmark Straits Times Index (SGX: ^STI) has declined by around 6.4% in absolute terms in the last five years, from around the 3,276 level to the current 3,067 level. If we add in a 3% dividend yield received every year for the last five years, this means the total return for the index would have been just around 8% to 9%.
However, investors may be surprised to know that there have been companies that not only trounced the index but also managed to deliver an excellent total return over that same period.
Here are three companies that would have more than doubled your money in the last five years if you’d just held on to them.
1. Riverstone Holdings Limited
Riverstone Holdings Limited (SGX: AP4) is a manufacturer of nitrile and natural rubber cleanroom gloves used in the semiconductor industry, as well as premium nitrile gloves used in the healthcare industry. The group has six manufacturing facilities in Malaysia, Thailand, and China with an annual production capacity of 9 billion gloves as of 31 December 2018.
In August 2014, Riverstone was trading at S$0.46. Its share price has risen to S$0.95 recently for a total capital gain of 106%. In addition, the group had paid out a total of S$0.105 in dividends over the last five years. The total return for Riverstone amounted to 129% over five years.
The group sees a resilient and consistent demand for cleanroom and healthcare gloves and is planning to expand its production capacity to 10.4 billion gloves by Q1 2020.
2. Venture Corporation Limited
Venture Corporation Limited (SGX: V03) is a contract manufacturer and a global provider of technology solutions, products, and services. The group comprises more than 30 companies and employs over 12,000 people worldwide.
Venture’s share price has risen from S$8.03 in August 2014 to S$14.55 in the last five years. During that period, it paid out total dividends amounting to S$2.80 per share. The total return on the shares was 116%, and investors would have more than doubled their money just by holding on to their shares.
Venture reported flat revenue and net profit growth for H1 2019, but it may see better results in H2 2019.
3. Mapletree Industrial Trust
Mapletree Industrial Trust (SGX: ME8U), or MIT, is a REIT that invests in income-generating industrial real estate. Its portfolio consists of 87 industrial properties in Singapore and 14 data centres in the US. As of 30 June 2019, the REIT had S$4.8 billion in total assets under management.
It’s hard to imagine that a REIT can provide total returns of 100% and more over a period of five years, but this is exactly what MIT did. In August 2014, shares were trading around S$1.40, while the last traded price now is around S$2.25. The capital gain alone is around 60.7% over the five years, but if you add in the total dividends received of around S$0.5688, then the total return rises to around 101%.
Investors who kept the faith with the REIT have effectively doubled their money over the last five years.
The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of Riverstone Holdings Limited and Mapletree Industrial Trust. Motley Fool Singapore contributor Royston Yang does not own shares in any of the companies mentioned.