Published on : Tuesday, April 11, 2017
Genting Singapore PLC (SGX: G13) and Straco Corporation Ltd (SGX: S85)may differ in terms of their size – they have market capitalizations of S$12.9 billion and S$666 million, respectively – but the two companies do share a strong familiar thread. Both are largely dependent on tourism spending in Singapore.
Genting Singapore counts Resorts World Sentosa as its main business asset. The integrated resort is a tourism landmark in Singapore and some of its attractions include a casino, the Universal Studios Singapore theme park, and an oceanarium. Straco depends largely on two aquariums in China and the Singapore Flyer, which is one of the world’s largest observation wheels. In 2016, the Singapore Flyer accounted for 32.2% of Straco’s overall revenue.
Both companies have strong balance sheets and healthy pay-out ratios. Genting Singapore has the faster historical growth in dividends while Straco has the higher dividend yield. Putting all of these together suggests that both companies are equally decent dividend stocks.