SIA Engineering – Part 1

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SIA Engineering (SIAEC) is one of the strong blue chips name in Singapore to buy and hold for dividends. It has also made regular appearance in the annual dividend stock list posted on this site in almost every year since 2009. The long term stock chart below shows that it has compounded its intrinsic value, albeit with some cyclicality while paying annual dividends for the past 14 years (based on Yahoo! Finance, the “D”s representing when dividends were paid). An investor who bought the stock at $1.5 in 2002 would have almost tripled his money including dividends.

SIAEC’s long term share price

SIA Engineering’s business deals with the maintenance of aircraft when they land in Singapore as well as in the other airports in Asia where the firm has presence. 40-50% of its revenue is ultimately tied to its parent: Singapore Airlines but the other businesses are also growing. …

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