| Blue chip notwithstanding, Venture Corporation's stock price has had a frightful plunge in the past 8 months. It recently touched $13.96, a depressing low after soaring to a record price of $29.65 in April 2018.  Wong Ngit Liong, 77, founder, Chairman and CEO of Venture.Still, for its long-time shareholders, Venture is nothing but a dream stock, as depicted by the dividend data shared by an investor with NextInsight.The dividend table (below) starts off with a hypothetical shareholder buying 100,000 Venture shares for 40 cents apiece in 1992 during its IPO, and holding the stock till now. That's a 26-year investment which certainly is a very long time by any standard. But Venture, a global electronics services provider that supports design, manufacturing, and e-fulfilment for a wide range of products, has made it very worthwhile, so far. |
The initial investment of $40,000 was followed by $80,000 when the shareholder subscribed for his rights entitlement in 1996.
And what has the $120,000 reeled in through the years?
Check out this table and be astonished:
|
Date |
Corporate action |
Value |
No. of shares |
$ received |
|
21‐May‐93 |
Dividend |
0.0075 |
100,000 |
750.00 |
|
20‐Jun‐94 |
4 Loan Stock cum 3 Warrant for every 10 share held Rights offer* |
- |
100,000 |
- |
|
8‐Jul‐94 |
Dividend |
0.0075 |
100,000 |
750.00 |
|
23‐Jun‐95 |
Dividend |
0.0150 |
100,000 |
1,500.00 |
|
3‐Jul‐96 |
Dividend |
0.0100 |
100,000 |
1,000.00 |
|
3‐Jul‐96 |
Bonus Dividend |
0.0100 |
100,000 |
1,000.00 |
|
28‐Jun‐96 |
Rights 1 for 2 @ 1.60 |
1.6000 |
50,000 |
(80,000.00) |
|
28‐Jun‐96 |
Bonus 1 for 1 |
- |
250,000 |
- |
|
16‐Jul‐97 |
Dividend |
0.0200 |
250,000 |
5,000.00 |
|
13‐Jul‐98 |
Dividend |
0.0200 |
250,000 |
5,000.00 |
|
14‐Jul‐99 |
Dividend |
0.0400 |
250,000 |
10,000.00 |
|
12‐Jul‐00 |
Dividend |
0.0400 |
250,000 |
10,000.00 |
|
29‐Jun‐01 |
Dividend |
0.0500 |
250,000 |
12,500.00 |
|
11‐Jun‐02 |
Dividend |
0.0500 |
250,000 |
12,500.00 |
|
16‐Jun‐03 |
Dividend |
0.0750 |
250,000 |
18,750.00 |
|
19‐May‐04 |
Dividend |
0.1875 |
250,000 |
46,875.00 |
|
20‐May‐05 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
18‐May‐06 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
22‐May‐07 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
5‐Sep‐07 |
Dividend |
0.0800 |
250,000 |
20,000.00 |
|
20‐May‐08 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
26‐May‐09 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
20‐May‐10 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
26‐May‐11 |
Dividend |
0.5500 |
250,000 |
137,500.00 |
|
18‐May‐12 |
Dividend |
0.5500 |
250,000 |
137,500.00 |
|
15‐May‐13 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
19‐May‐14 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
20‐May‐15 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
18‐May‐16 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
25‐May‐17 |
Dividend |
0.5000 |
250,000 |
125,000.00 |
|
31‐May‐18 |
Dividend |
0.6000 |
250,000 |
150,000.00 |
|
19‐Sep‐18 |
Dividend |
0.2000 |
250,000 |
50,000.00 |
|
Total received |
|
|
|
$1,995,625 |
|
* Value derived from loan stock-cum-warrants rights offer have been left out for lack of available information. |
||||
Venture had been stepping up its dividend payouts, so after 26 years, the shareholder (in the above table) has collected close to $2 million in dividends.
|
Stock price |
$13.96 |
|
52-week range |
$13.48-$29.65 |
|
PE (ttm) |
10.7 |
|
Market cap |
S$4.0 b |
|
Shares outstanding |
287.8 m |
|
Dividend yield (ttm) |
5.7% |
|
1-yr return |
-29% |
|
Source: Bloomberg |
|
And the value of his 250,000 shares at the recent price of $13.96 apiece is $3.49 million.
The total return = $5.49 million.
It is a gain of nearly 46X, or 4,471%.
The average gain per year was 172% while the compounded annual growth rate, about 16%.
What a windfall!
To put things in perspective, very few of the original shareholders would still be holding the stock today.
Imagine starting at, say, 30 years of age and still keeping faith in the stock at 56 now!
