SATS Ltd: Stable Dividend Stock from Singapore
Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments.
SG Web Reviews does not accept any liability whatsoever for any direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this article. The information and opinions in this publication are not to be considered as an offer to sell or buy any of the securities discussed. Opinions expressed are subject to change without notice.The economy of Singapore has experienced rapid economic development since independence in 1965. Its strong economic performance reflects the success of its open and outward-oriented development strategy. The importance of services to the Singapore economy also grew, as evidenced by the increasing share of the financial and business sectors of the economy. In this article I am sharing about one of the best Singapore dividend stocks which will give you good returns.
SATS Ltd
Corporate Overview
SATS Ltd, is an investment holding company based in Singapore which formerly known as Singapore Airport Terminal Services Limited. It offers the most complete solutions, even for the most complex requirements. Its other activities include rental of premises and business of management services to related companies. The company controls about 80% of Changi airport’s ground handling and catering business. Its subsidiaries include SATS Airport Services, SATS Catering, SATS Security Services, Aero Laundry & Linen Services, Aerolog Express, Country Foods Pte Ltd and Singapore Food Industries.
Its Food Solutions business comprises airline catering, food distribution and logistics, industrial catering as well as chilled and frozen food manufacturing, besides linen and laundry services. It extended its reach through Asia Pacific and besides the aviation sector, to industries including healthcare, hospitality and government agencies. The company’s gateway services segment provides airport terminal services include airfreight and ground handling services, aviation security, aircraft cleaning, technical ramp handling and their-party logistic services.
History
In 1972, as SIA concentrated on its core business of running an airline, the establishment of SATS as a separate, yet wholly owned subsidiary company evolved naturally. On December 15, 1972, SATS was formally corporatized with 1,673 staff. In the year of 1977 the company opened its first airfreight terminal at Paya Lebar Airport, capable of handling 160,000 tons of cargo a year. In 1981 the company moved to Singapore’s new Changi Airport after investing S$147 million in a new headquarters building, a new in-flight catering center, which at that time was the largest single-building in-flight kitchen in the world, and two new airfreight terminals.
In the year of 1992 three companies within SATS –Apron, Cargo and Passenger Services – were merged to form a new Company, SATS Airport Services (SAS). This consolidation was designed to improved co-ordination and communication, and strengthens the Group’s Competitiveness. It was listed on the SGX mainboard on 12 May 2000. In 2010 the company (SATS) changed its name from Singapore Airport Terminal Services Limited to SATS Ltd. to better reflect the Group’s business and focus as it continues to leverage its competencies in gateway services and food solutions to grow in and out of Singapore.
Strategy
The company’s strategy is to leverage its gateway services and food solutions capabilities to transform itself to become the first choice provider in selected industries where it corporates. The company is guided by its strategic thrusts, namely operational excellence, innovation, customer intimacy and growth in accessing organic and inorganic opportunities.
Dividend Announcement
On 14 May 2013, SATS Ltd announced that the interim cash dividend of 5 cents, final dividend of 6 cents and special cash dividend of 4 cents was declared. The proposed ordinary and special dividends, if approved by shareholders on July 26, 2013, will be paid on August 16, 2013.
Dividend History
At the present time the company has a market capitalization of 3.50 Billion, EPS is 0.18, P/E ratio is 17.06 and the dividend yield is 3.53% at the annual dividend payout of 0.06.
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