In Cruise Control

Singapore Shipping Corporation has released its FY2007 results. MOS last discussed this security about a month ago (11 Apr 07) after noticing that its adjusted PER was actually less than 1x. Despite its net profits sinking by nearly 85% for the last financial year, management has declared a hefty net dividend payout of 12 cents. This far exceeds our expectations but it verifies what we discussed earlier - Mr Ow has a track record of rewarding shareholders.

Based on the 11 Apr 07 entry price of S$0.40, the payout translates to a bumper dividend yield of 30%.