Venture Corporation Limited

Venture (SGX:V03) Has Announced A Dividend Of SGD0.25

Venture Corporation Limited's (SGX:V03) investors are due to receive a payment of SGD0.25 per share on 14th of September. Based on this payment, the dividend yield will be 5.7%, which is fairly typical for the industry. See our latest analysis for Venture Venture's Earnings Easily Cover The Distributions We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last dividend was quite easily covered by Venture's earnings. This means that a large portion of its earnings are being retained to grow the business. Looking forward, earnings per share is forecast to rise by 5.4% over the next year. If the dividend continues on this path, the payout ratio could be 65% by next year, which we think can be pretty sustainable going forward. SGX:V03 Historic Dividend August 28th 2023 Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. Since 2013, the dividend has gone from SGD0.50 total annually to SGD0.75. This works out to be a compound annual growth rate (CAGR) of approximately 4.1% a year over that time. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. Dividend Growth Is Doubtful With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Over the past five years, it looks as though Venture's EPS has declined at around 5.5% a year. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend. Our Thoughts On Venture's Dividend In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Venture's payments, as there could be some issues with sustaining them into the future. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. Overall, we don't think this company has the makings of a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Venture that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Valuation is complex, but we're helping make it simple.Find out whether Venture is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Publish Date : 2023-08-28

Tiburon tech firm wins $12M verdict against Singapore-based behemoth

A small tech company in Tiburon has won a verdict of more than $12 million against a Singapore company it sued for alleged breach of contract and “extortionate demands.” FiTeq Inc., a 23-member firm that specializes in credit card data security, filed the lawsuit in 2013 against Venture Corp. and a subsidary company. Venture provided engineering services and manufacturing for FiTeq’s breach-resistant credit cards. As part of the deal, Venture received about 15 percent of FiTeq’s common stock and a seat on its board, according to the lawsuit. Venture repeatedly missed deadlines and failed its obligations under the work agreement, the lawsuit alleged. FiTeq alleged that the setbacks were detrimental to its business commitments. Venture, upon which FiTeq was “wholly dependent” for its success, tried to renegotiate its deal for a $9 million payment and another $20 million for a minimum order of a million cards per month, the lawsuit said. FiTeq also alleged that Venture declined to return cards and materials after the work agreement was terminated. “In this fashion, Venture demanded to be paid far more than twice for work it had not done once,” the lawsuit said. “Even today, Venture holds FiTeq property hostage to an extortionate financial demand.” Venture denied wrongdoing. After several years of litigation and settlement talks, the case went to trial in federal court in San Jose. The trial lasted 11 days and ended with a jury verdict on Jan. 24 in FiTeq’s favor. The jury awarded $8.6 million to FiTeq for out-of-pocket expenses it incurred. It also awarded prejudgment interest, which Spencer Hosie, lead attorney for the plaintiff, estimated at $4 million. The jury also awarded Venture $77,563 for 2,140 Citibank prototype cards it provided to FiTeq and $303,900 for inventory remaining after the cancellation of the work agreement. Hosie said the cost to Venture could be about $23 million if it files an appeal, which could take more than a year to resolve. “In addition, there is a mandatory fee and cost shifting provision under the contract. The loser pays the other side’s fees and costs,” Hosie said. “Not sure that Venture understands the old maxim: When you are in (a) hole, the first thing you do is stop digging.” Lawyers for Venture Corp. did not respond to a request for comment. Venture Corp. has about 12,000 employees worldwide and generates more than $2 billion a year in annual revenue.

Publish Date : 2017-02-01