On 24 February 2023, Venture Corporation Limited (“Venture”) have announced their full year result for 2022. I liked that they continued to have no borrowings, with dividends fully supported by their earnings per share without the need to adjust for depreciation nor amortization, indicating that it is sustainable over a long term.
Although they have continued to deliver a strong set of results, it is worth noting that interest rates are currently still on an upward trajectory. Their share price may continue to decrease as safer assets continue to be able to match their current dividend yield. Investors looking for stable dividend may reassess their required return from Venture.
There is also the news of Silicon Valley Bank collapsing last week. Venture may not necessarily be directly affected, but there is a possibility for market sentiment to be sour over the next few weeks or months as the full...