Money Matters

Income Investors Pay Attention: These 2 Companies Have More Than Doubled Their Dividends In The Last 10 Years

(Source: www.fool.sg)

Income investors tend to seek companies that can pay sustainable dividends. Unfortunately, no one can accurately predict the future, which means that there?s no way one can accurately foresee whether a company has the ability to consistently pay a dividend in the years ahead. But, we can still gain some insight about the future by studying the past. If a company has been paying a dividend consistently for many years, there could be something special about its business that could protect its profits and cash flows in the future, and thus, its ability to pay a dividend. In this article, I…

Register by giving us your email below to continue reading all of the content on the site. Also receive a free Email Newsletter from the Motley Fool. (You may unsubscribe any time)

Income investors tend to seek companies that can pay sustainable dividends. Unfortunately, no one can accurately predict the future, which means that there’s no way one can accurately foresee whether a company has the ability to consistently pay a dividend in the years ahead.

But, we can still gain some insight about the future by studying the past. If a company has been paying a dividend consistently for many years, there could be something special about its business that could protect its profits and cash flows in the future, and thus, its ability to pay a dividend.

In this article, I want to share the identity of two companies that have been paying an annual dividend over the last 10 years. What’s even better is that the duo have more than doubled their dividends in that period.

In no order of merit, the first on my list is Thai Beverage Public Company Limited (SGX: Y92).

As a quick introduction, Thai Beverage is a food and beverage company that produces and distributes spirits, beer, snacks, and non-alcoholic beverages.

From 2006 to 2016, Thai Beverage has either increased or maintained its annual dividend. In that period, the company’s dividend has jumped nearly four-fold from THB 0.22 per share to THB 0.80 per share (the THB 0.80 per share dividend for 2016 is on an annualised basis). At its current stock price of S$0.96, the company has a yield of 2.6%, according to S&P Global Market Intelligence.

Next up is Jardine Cycle & Carriage Ltd (SGX: C07), a bona-fide conglomerate with business segments such as: automotive; financial services; heavy equipment and mining; agribusiness; information technology; and infrastructure and logistics; property; and more.

Jardine Cycle & Carriage’s dividend was US$0.20 per share in 2006, according to data from S&P Global Market Intelligence. The conglomerate’s dividend has since increased by 270% to US$0.74 per share in 2016. The snag here is that Jardine Cycle & Carriage’s dividend had peaked at US$1.23 per share in 2011 and 2012.

Right now, Jardine Cycle & Carriage has a stock price of S$39.22 and a yield of 2.6%.

A Foolish conclusion

Not many companies can post a track record of consistently paying a dividend for 10 years or longer. It’s even rarer to find a company that has doubled its dividend, or more, over the past decade.

The fact that Thai Beverage and Jardine Cycle & Carriage have such a history makes them very interesting companies to study.

If you like what you’ve seen, you can get even more investing insights and analyses from The Motley Fool’s investing newsletter Take Stock Singapore. It’s FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool’s purpose is to help the world invest, better.

More Info: www.fool.sg

Advertisements