Though there are many different kinds of businesses out there, only a few of them are able to pay out a consistent and predictable dividend. These types of businesses have stable operating characteristics and/or consistent demand for their products and services, which allows them to generate large amounts of free cash flow that can be used to pay out steady dividends. Income investors generally embrace such companies as their predictability and stability offer both peace of mind and a steady stream of dividends. However, investors should also note that such businesses could occasionally be subject to disruption from technology or new competitors, and there is still a constant need to keep an eye on the business to ensure it still enjoys great economic characteristics. Here are four types

Investors always want more dividends. This is why dividend-paying companies are so popular — they represent a cash return on our investment from profits generated by the business. The hunt is always on for companies that not only pay regular and consistent dividends, but also companies that raise them over the years. There are many reasons companies raise their dividends, but the most important one, in my view, is that the business is improving and generating more profit and free cash flow. This is the main reason great companies pay increasing dividends over time and can act as superb compounders of investors’ wealth. Another reason could be because the business generates excess cash flow that it does not require to maintain its business, and can thus pay out the rest as divi

Hospitals are can be a bit like hotels except they don’t leave a piece of chocolate on your pillow at night. That might seem a little facetious. But essentially, hospitals are places where people rent a room or a bed space when they are unwell and check out when they feel better…. …. during their stay, they are cared for by nurses and doctors in exchange for a consideration. According to Deloitte, global healthcare spending could rise around 5% annually to exceed $10 trillion by 2022. Of course, not every dollar will be spent in hospitals. Other healthcare companies have a vital role to play too. These include pharmaceutical companies such as GlaxoSmithKline (LSE: GSK) in vaccines and Abbott (NYSE: ABT) in diagnostics. GlaxoSmithKline’s vaccine business generated

Picture the scene…. …. let’s say I own a couple or three apartments (which I don’t) within a condominium in Singapore. There’s nothing wrong with that. There are many wealthy individuals in Singapore who are lucky enough to be able to do that. Then one day I decide to sell one of my units. But instead of selling it on the open market, I sell it to myself. Yup, I write out a big fat cheque to myself…. …. What’s more, I sell it for a lot more than the average asking price on the market. Who is going to object to that? After all, I am both the buyer and the seller in the transaction. But what kind of effect might that have on my other properties, and also on properties in the vicinity that I don’t own. Chances are their prices could g

With medical advancements and improved standard of living, life expectancy is only set to increase. In Singapore, people live an average of 84.8 years, beating even countries known for their long life expectancy such as Japan (84.1 years). Read Also: Why You Need To Plan For Your Retirement Beyond Your Life Expectancy While our life expectancy increases, this does not mean that we are always in good health. Health problems are common, and in some cases, more apparent than in previous decades. For example, more elderly in Singapore are suffering from chronic diseases today compared to a decade ago. Chronic diseases include high blood pressure, high blood cholesterol, arthritis, diabetes and more. As the need for advanced, quality healthcare services increases, it’s also important to note

Food Empire Holdings Limited (SGX: F03) is a branding and manufacturing company in the food and beverage sector. The group’s products include instant beverage products, frozen convenience food and snack food. Its products are exported to over 50 countries, and the group has eight manufacturing facilities with 24 offices worldwide. Food Empire has seen its share price climb more than 140% from a low of S$0.21 in early 2016 to the current S$0.50, giving the company a market capitalisation of around S$268 million. The group has seen its fair share of challenges as it is one of the few companies on the local bourse which was able to successfully penetrate the Russian market, and has been selling its proprietary MacCoffee and Petrovskaya Sloboda brands there for many years. Investors may

Hi-P International Ltd (SGX: H17) is one of the region’s largest integrated contract manufacturers. The group provides solutions to clients in diverse industries such as wireless telecommunications, consumer electronics and medical devices. It has 12 manufacturing plants located across five cities in China. Hi-P’s share price has plunged from a high of S$2.68 in March 2018 to the current S$1.15, a 55% drop in just 18 months. One reason for this could be its lacklustre FY 2018 earnings, which saw revenue dipping marginally by 1.7% year-on-year but net profit declining by almost 17% due to higher cost pressures. In October 2018, the group had also issued a profit guidance that mentioned a delay in sales recognition due to postponement of billing and lower market demand for certa

Over the last five years, Raffles Medical Group Ltd (SGX: BSL) shares have tumbled 28% and now trade close to a five-year low. However, that is not to say that the healthcare giant has not been a massive winner over the longer term. Since it was listed in Singapore in 2000, the healthcare provider has grown at a breakneck pace, becoming one of Singapore’s most recognisable healthcare brands. Looking back I took a trip down memory lane to see how much an investor would have made if they had invested in Raffles Medical around 20 years ago. In 2000, shares of Raffles Medical traded at a split-adjusted price of 23.5 Singapore cents per share. Today, Raffles Medical shares exchange hands for around 96.5 Singapore cents. That equates to a 310.6% gain in that time frame. For perspecti

Raffles Medical Group Ltd (SGX: BSL) runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Furthermore, it has two hospitals (one under development) in China. Year-to-date, Raffles Medical’s share price declined by 20% from its peak of S$1.20. Here, let’s try to understand what might have caused the decline. The culprit There are many reasons that cause the stock price of a company to move. Generally, stock price movement is driven either by business performance or investor sentiments. The former is related to how a business performs in a given period, looking at metrics like growth, margins, production and others. Here, the ultimate driver is profit. The latter is driven more by investors’ overall moo

Raffles Medical Group Ltd (SGX: BSL) is a large private healthcare group with operations in many countries, including Singapore. With its closing share price at S$0.965 on Thursday, Raffles Medical’s shares have slumped around 12.3% and are languishing near their 52-week low. Contrarian investors may be wondering if it’s worth buying Raffles Medical’s shares given the falling share price. Let’s find out. Financial highlights No investment analysis is holistic without investigating the company’s historical financial performance. From 2014 to 2018, the medical outfit’s revenue and net profit have grown steadily. Source: Raffles Medical Group Ltd 2018 annual report Its top line improved by 6.9% per year, from S$374.6 million in 2014 to S$489.1 million in

Healthcare companies are generally considered “defensive” stocks since their services are needed in both the good and the bad times. Given their defensive nature and the current fears in the market about a recession, it is not surprising to see that investors are attracted to these stocks. For those who are seeking investment ideas in this sector, you might want to know which companies you should invest in. In this article, I’ll compare two companies that have exposure to this sector, namely Raffles Medical Group Ltd (SGX: BSL) and Singapore O&G Ltd. (SGX: 1D8). What I want to find out here is which of the two is the better deal now for investors. Valuation To find out which is cheaper, I’ll compare the valuation metrics of both companies. The three valuation

Did you notice how quickly markets recovered their mojo when Donald Trump told the media at one of the G7 press conferences in Biarritz that China had called to make a deal? He said China desperately wants to make a deal. He embellished it generously with his usual hyperbole that China is hurting, China s stealing billions of dollars from America, China is losing millions of jobs and that China is paying billions in US-imposed tariffs. Every man and his dog who was watching probably knew that no such phone call had either been made or received. Nor was China desperate about doing a deal. If anything, China is quite happy to sit on its hands…. …. but that didn’t stop traders from pushing up stock market index futures. Like Pavlov’s dog, they react with utmost pred

Raffles Medical Group Ltd (SGX: BSL) is one of the largest integrated healthcare providers in the region and provides a comprehensive suite of services ranging from primary to tertiary care. RMG owns the flagship Raffles Hospital in Bugis, runs one of the largest networks of private family medicine and health screening centres in Singapore, and has representative offices in many Southeast Asian countries such as Indonesia, Vietnam, and Cambodia. RMG has hit a fresh 52-week low yesterday, with its share price dipping briefly to S$0.96. Investors should note that the group had just opened the doors of its newly constructed 700-bed hospital in Chongqing, China, called Raffles Medical Chongqing, in January 2019. Currently, RMG is busy with the construction of its second 400-bed hospital in Ch

IHH Healthcare Bhd (SGX: Q0F) is one of the largest healthcare players in the region. It operates local hospitals such as Mount Elizabeth and Gleneagles as well as numerous other hospitals in Malaysia, Turkey, China, and India. It also has a stake in Parkway Life REIT (SGX: C2PU), which gives it a regular dividend. But the big question is: Does IHH make a good investment? Let’s find out. Earnings and growth prospects The healthcare giant recorded a good set of results in the first half of 2019, with core net profit up 4% on the back of a 38% surge in revenue. The contribution from its recently acquired Fortis Healthcare, which operates hospitals in India, was the main driver of growth this year. In Hong Kong, the group’s new hospital, Gleneagles Hong Kong, reported stable loss

Companies with excess capital can reward shareholders by buying back shares, where they purchase their own shares in the open market, thereby reducing the number of outstanding shares. In doing so, shareholders see their stake in the company increase. A company’s management may also choose to do share buybacks instead of paying a special dividend when it believes its shares are undervalued. With that in mind, here are two companies that recently conducted share buybacks. 1. AEM Holdings Ltd AEM Holdings Ltd (SGX: AWX) provided an earnings surprise in the quarter ended 30 June when it posted a 64.5% increase in net profit. The group’s revenue also increased by 34.8% due to higher demand for its test handler system. The manufacturing company said its main customer (believed to b

With 14 companies in the midst of privatisation, it is safe to say that the M&A and privatisation wave is gaining momentum. Based on data from DBS, the number of M&A deals have exceeded the whole of 2018 and 2017 respectively. In privatisation deals over the last three years, shareholders could gain around 15 percent premium over the last transacted share price. DBS thinks that such opportunity continues to exist for investors to capitalize on. Screening Criteria For M&A Plays By DBS To screen for privatisation candidates, DBS uses three criteria: (1) Cash rich; (2) Low liquidity; and (3) Majority shareholder has more than 50 percent ownership. In this 3-part M&A series, we summarise six M&A investment themes from DBS for investors to consider as an alpha generating inv

The Singapore stock market is home to many quality companies. Here are ten of my favourite shares listed on the SGX that you can consider buying in 2020 and beyond (listed in alphabetical order). 1. DBS Group Holdings Ltd (SGX: D05) DBS is Singapore’s largest bank with its tentacles spread out in many of the growing Asian nations, including China and India. In 2019, the bank was named by Euromoney as the “World’s Best Bank” – not an easy feat considering the competition it has the world over. Its established and growing presence in Greater China, South Asia, and Southeast Asia allows it to capture growth in this dynamic part of world for many years to come. 2. Haw Par Corporation Ltd (SGX: H02) Haw Par owns the widely-recognised Tiger Balm brand, a pain rel

Raffles Medical Group Ltd (SGX: BSL), Sheng Siong Group Ltd (SGX: OV8), and VICOM Limited (SGX: V01) should provide stability even when the economy tanks.

One of the key drivers of the healthcare sector is the aging population theme in both Singapore and Malaysia. The proportion of citizens aged above 65 has been growing in both countries. For Singapore, almost a quarter of its citizens will be aged 65 and above by 2030. Meanwhile, the neighbouring Malaysia would also see the proportion of citizens, aged 65 and above, grow to 10.7 percent by the same time. Problem Of Overcrowding At Public Hospitals By MBKE That said, it appears that the public hospitals alone will not be able to attend to the healthcare needs of Singaporeans and Malaysians. According to personal finance research firm Value Penguin, Singapore’s public hospitals are close to its limits at the moment. The average occupancy rate is near 85 percent while the average wait times