VICOM Ltd has always been a well-liked stock among dividend investors. The company is a listed subsidiary of Straits Times Index’s constituent, ComfortDelgro Corporation Ltd. It is the leader in vehicle inspection in Singapore, controlling about 75% of the entire market. It also operates a non-vehicle inspection and testing division through Setsco Services.

VICOM has been a consistent dividend payer throughout its history and tends to have a high dividend yield of more than 5%. However, from its latest annual report, we are seeing signs that its high dividend might not be as sustainable as we think.

Here are 5 key updates you need to know from VICOM Ltd’s annual report.

Revenue Decline

Revenue of VICOM Ltd is under pressure. Mainly due to the declining vehicle registration in Singapore and the government policy of moving towards being a “car-light” nation, VICOM sees its revenue dropping around 2% a year from ...