Tuesday, March 17, 2015

UMS Holdings - The Dividend Income Gem?

UMS Holdings
For the past few days, I've been doing some researching over the internet for the small/medium cap counters which are consistently paying high dividend yield (healthily) for the past 5 years or more and the businesses are consistently in good shape too. 

There are quite a number of counters fit my bills (criteria) but one particular counter that caught my eye is UMS Holdings (588.SI)

Company Background :
UMS Holdings Limited is a one-stop strategic integration partner providing equipment manufacturing and engineering services to Original Equipment Manufacturers (OEM) of semiconductors and related products.

Headquartered in Singapore, the Group has production facilities in Singapore, Malaysia as well as California and Texas, USA.

Dividend Per Share (Cents) for the past 5 years :
2014       : 6.5 cents (Plus 1 for 4 BONUS shares)
2013       : 5 cents
2012       : 6 cents
2011       : 6 cents
2010       : 3 cents

For 2015, 3 cents has been declared and will be paid in May 2015 (currently trading at CD and will be in XD on 5th May 2015)

The share is currently trading at $0.525, for simplistic reason, we can derive the following Dividend Yield if we were to calculate base on this common share price (I know this is the lazy and incorrect way):

Dividend Yield (%) for the past 5 years :
2014       : 12.38 %
2013       : 9.52%
2012       : 11.43%
2011       : 11.43%
2010       : 5.71% 

UMS Holdings is a cash rich company with near zero debt and tons of cash in the bank, following are some promising key financial ratios :
UMS Holdings Key Financial Ratios
Click here to see their completelatest Financials!   

To top it off, following is another piece of good news for the semiconductors sector (dated 2nd March 2015) :

Global Semiconductor Industry Posts Highest-Ever January Sales 

The Semiconductor Industry Association (SIA) announced that worldwide sales of semiconductors reached $28.5 billion for the month of January 2015, the industry’s highest-ever January total and an increase of 8.7 percent from January 2014 when sales were $26.3 billion. Global sales from January 2015 were 2 percent lower than the December 2014 total of $29.1 billion, reflecting normal seasonal trends. Regionally, sales in the Americas increased by 16.4 percent compared to last January to lead all regional markets. 

“After a record-setting 2014, the global semiconductor industry is off to a promising start to 2015, posting its highest-ever January sales led by impressive growth in the Americas market,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Global sales have increased on a year-to-year basis for 21 consecutive months and remain strong across most regions and product categories.” 

UMS Holdings is currently trading at 18% premium ($0.525 / $0.4446), I have keep it in my watch list and intend to bring it onboard to my Dividend Income Portfolio before end of the month. Watch this space!

Are you vested in UMS Holdings? What is your view about this counter?  


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  1. Just take note the CEO has a tendency of selling his shares. His actions can confuse investors that the share is overpriced. If you ignore this action, its a good dividend stock.

    1. Mslee888 : Ya, I saw that too but based on the recent AGM, I think the CEO has clarified that it is due to personal reason and not the company's performance! Thanks for highlighting it!

  2. Hi, did you know from http://www.fool.sg/2014/06/14/falling-knife-of-the-week-ums-holdings-limited/ which stated in 2013, the revenue from Applied Materials accounted for around 80% to90% of UMS’ total revenue?

    That is a big risk to take note.

    1. Darren : Thanks for highlighting. I read about that report too and Applied Materials is also releasing substantial UMS' shares last year. With the bright outlook of the industry/sector, I am still have good feel about this stock.. ;-)


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