Hi-P International Limited: The Better Dividend Share

Hi-P International Limited (SGX: H17) operates as an integrated contract manufacturer serving the telecommunications, consumer electronics, computing and peripherals, lifestyle, and medical and industrial devices industries.

Hi-P International Limited one of the leading Singapore undervalued stock operates through three segments: Precision Plastic Injection Molding; Mold Design and Fabrication; and Provision of Sub-Product Assembly and Full-Product Assembly Services.

The company pay a dividend and could interest income investors, which would boost your earning? To help that, here Multi Management Future Solutions research the dividend yields, dividend historical growth rates, and dividend payout ratios from different sources let take a look:  

Dividend Yield

Hi-P had a trailing dividend yield of 6.1% with a share price of S$0.825 at the close of trading on the second weak of November 2018, on the other hand, the the stocks related to the same segment has the dividend yield less than 5 percent with the maximum share price compared to the Hi-P for example Venture’s share price closed at S$15.03 on Monday (12 November), giving the company a trailing dividend yield of 5.3% which shows  that Hi-P has a better dividend yield than other stocks.

Dividend growth rate

The dividend yield gives information about what a company has paid over the last 12 months, However, we should also be looking at how the company’s dividend has changed over time, preferably over the last five years or more.     

Hi-P has the upper hand dividend growth over other stock, its dividend had climbed by 154% annually from S$0.006 per share in 2013 to S$0.25 per share in 2017. In 2017, Hi-P paid out an interim dividend per share of S$0.19 in the second quarter, which looks like a one-off dividend to me. Excluding this dividend, Hi-P’s dividend from 2013 to 2017 would have grown by 77.8%, which is still commendable.  

Dividend payout ratio

Hi-P’s payout ratio was 88.3%, given its free cash flow and dividend payment of S$228.6 million and S$201.9 million, respectively, in 2017. The dividend payment amount includes the 2017 second-quarter interim dividend.

By considering these three factors we can say that Hi-P is the more attractive dividend share with a higher dividend yield and far superior dividend growth rate.