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.

wongngitliongWong 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

21May93

Dividend

0.0075

100,000

750.00

20Jun94

4 Loan Stock cum 3 Warrant for every 10 share held Rights offer*

-

100,000

-

8Jul94

Dividend

0.0075

100,000

750.00

23Jun95

Dividend

0.0150

100,000

1,500.00

3Jul96

Dividend

0.0100

100,000

1,000.00

3Jul96

Bonus Dividend

0.0100

100,000

1,000.00

28Jun96

Rights 1 for 2 @ 1.60

1.6000

50,000

(80,000.00)

28Jun96

Bonus 1 for 1

-

250,000

-

16Jul97

Dividend

0.0200

250,000

5,000.00

13Jul98

Dividend

0.0200

250,000

5,000.00

14Jul99

Dividend

0.0400

250,000

10,000.00

12Jul00

Dividend

0.0400

250,000

10,000.00

29Jun01

Dividend

0.0500

250,000

12,500.00

11Jun02

Dividend

0.0500

250,000

12,500.00

16Jun03

Dividend

0.0750

250,000

18,750.00

19May04

Dividend

0.1875

250,000

46,875.00

20May05

Dividend

0.5000

250,000

125,000.00

18May06

Dividend

0.5000

250,000

125,000.00

22May07

Dividend

0.5000

250,000

125,000.00

5Sep07

Dividend

0.0800

250,000

20,000.00

20May08

Dividend

0.5000

250,000

125,000.00

26May09

Dividend

0.5000

250,000

125,000.00

20May10

Dividend

0.5000

250,000

125,000.00

26May11

Dividend

0.5500

250,000

137,500.00

18May12

Dividend

0.5500

250,000

137,500.00

15May13

Dividend

0.5000

250,000

125,000.00

19May14

Dividend

0.5000

250,000

125,000.00

20May15

Dividend

0.5000

250,000

125,000.00

18May16

Dividend

0.5000

250,000

125,000.00

25May17

Dividend

0.5000

250,000

125,000.00

31May18

Dividend

0.6000

250,000

150,000.00

19Sep18

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 rateabout 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! 

See recent similar stories: 
• HOTEL GRAND CENTRAL: If you had opted for scrip dividends, what's your gain?

• HOTEL GRAND CENTRAL: 50th anniversary, how much have you made from stock?
• SINWA: If you invested in IPO 16 years ago, how much have you made?


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