Every little thing for you: Sheng Siong Inventory and Dividend Information, Cash Information

Sheng Siong, one of our local supermarkets, has been getting stronger on the back of Covid-19. If you are looking to add this grocer to your portfolio, there are some things you should know about dividends before you hit the buy button.

Sheng Siong, an inland supermarket, is a publicly traded stock that requires little introduction.

When news broke on May 14 that Singapore would enter Phase 2 (heightened alert), Sheng Siong’s share price rose 10 percent in one day.

Sheng Siong has more than 60 stores across the island, mostly in the neighborhood rather than in malls. They pride themselves on offering quality products that are great value for money.

Food and household products aside, frequent Sheng Siong shoppers are familiar with Sheng Siong lucky draws and competitions, where shoppers can win attractive prizes.

Sheng Siong also made the news last year with her silent acts of kindness, giving money for funerals for 30 years to promote a greater “kampung spirit.”

Before you decide to add Sheng Siong to your portfolio, there are a few important details you should know.

Sheng Siong’s growth in 2020 and beyond

Sheng Siong has been a beneficiary of the Covid-19 situation and has released outstanding numbers since the outbreak of the pandemic.

In the first quarter of 2021, Sheng Siong’s net income rose 6.5 percent year over year to $ 30.9 million. This despite the comparison with a relatively high base due to the demand for Covid-19 in the first quarter of last year.

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If we look at fiscal 2020 as a whole, Sheng Siong’s net income rose an impressive 83.7 percent year-over-year to $ 139.1 million.

Most people will remember the 16-month bonus some Sheng Siong employees received and the many memes from Sheng Siong that followed – a clear indication of their solid sales performance.

Sheng Siong’s CEO also mentioned that the group is determined to expand its presence in Singapore, especially in locations that do not have Sheng Siong stores.

They also aim to improve profitability by increasing gross margin – this is done through better cost efficiency in the supply chain and changing the sales mix to include more fresh produce.

Sheng Siong’s share price has seen a gradual upward trend in recent years, trading around $ 1.6 in May 2021, compared to less than $ 1 in 2018. Many investors choose Sheng Siong for its dividends rather than capital gains in their portfolio.

How Much Do You Get When You Own Sheng Siong Stock?

Sheng Siong usually pays dividends twice a year. This year, 2021, Sheng Siong will pay dividends of S $ 0.03 per share in May of this year. Ex-dividend day (the last day investors can buy Sheng Siong shares to receive dividends) was May 7th.

This means that if you own 10,000 Sheng Siong shares, you will receive dividends worth $ 300 on May 20th (the date the dividend will be paid).

In the past five years, Sheng Siong’s dividends have risen across the board. 2020 was a great year for investors with the highest dividend per share ever.

Sheng Siong Dividend Payout Date: Based on historical data, Sheng Siong typically issues dividends every two years, especially in May and August.

While a two to three percent return might not be the most impressive (Singapore bank stocks and real estate mutual funds can offer higher returns), it’s still worth thinking about as it will help your wealth beat inflation with low volatility. This could also be a great way to diversify your portfolio.

Why Invest in Sheng Siong Stock?

The lines at Sheng Siong cashiers are significant. In such uncertain Covid-19 times, supermarkets like Sheng Siong continue to thrive. People still need to visit the supermarket for groceries and household items that will be needed at home for long periods of time.

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Sheng Siong is aimed at Heartlanders, offering quality products at affordable prices. Aside from groceries, there are other compelling reasons for locals to buy groceries from Sheng Siong rather than other supermarkets.

This includes the frequent raffles and up to 12 percent cashback that you get when you spend on a credit card such as the BOC Sheng Siong card. Seniors aged 60 and over receive a three percent discount every Wednesday for the whole of 2021.

Above all, dividends were constantly being paid out and increased due to Covid-19. If you are an investor looking to add a stock that will add to a steady passive income stream, Sheng Siong should be considered.

What Are the Risks of Investing in Sheng Siong?

Sheng Siong isn’t the only grocery store in Singapore. People like NTUC FairPrice, Cold Storage, Giant and even HAO Mart are giving Sheng Siong a run for his money.

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However, it is also worth noting that different grocery stores have their own unique appeal, and in some cases special products are sold on the shelves.

Redmart, Pandamart, and Grab Mart are emerging online supermarkets that also offer door-to-door delivery to their customers – a huge draw for consumers who don’t have time to head out or just avoid the crowds.

While stocks like Sheng Siong have had good days since Covid-19 began, it is possible that pedestrian traffic and supermarket purchases will decline if the tide turns and travel and dining fully resumes.

How to Invest in Sheng Siong Stock?

To buy Sheng Siong shares, you must have a brokerage account. If you plan to hold the stock for an extended period of time, you can also open a CDP (Central Depository) account and store your Sheng Siong shares there.

Since Sheng Siong is listed on the SGX, be sure to choose a brokerage account that provides access to Singapore stocks.

This article was first published on SingSaver.com.sg. All content is displayed for general informational purposes only and does not constitute professional financial advice.