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OPINIONS
A mixture of decent dividend yields and capital gains is the perfect scenario.
Investors always wish to be in a situation whereby they enjoy the best of both worlds - to receive decent dividend yields and substantial capital gains on their investments.
With a decent dividend yield, investors can ensure that they are duly compensated with the risks involved in investing in the respective counters. On the other hand, capital gain will allow investors to see their investments grow over a period.
With that in mind, we will be looking at 3 companies with a decent dividend yield and capital gains:
Ban Leong Technologies (“Ban Leong”) Limited has been listed on SGX since 23 June 2005. The Company's principal activities include wholesale and distribution of computer peripherals, accessories and other multimedia products. The Company's segments include Multimedia, Data storage and IT accessories.
For the past 1 year, Ban Leong has achieved a total shareholder return of nearly 80%. Majority of these returns are generated via capital gains (15 cents per share), while the remaining came in the form of dividend (2.5 cents per share).
The spectacular run-up in its share price can be attributed to the increase in demand for IT accessories during the pandemic period, where working from home is the new norm.
Based on the current share price of S$0.37, this translates into a dividend yield of 6.76%.
Established in 1988, RE&S Holdings Limited (“RE&S”) is a multi-concept owner and operator of F&B outlets in Singapore and Malaysia that provides customers with authentic Japanese cuisine and dining experience.
Since then, RE&S has grown from a single Fiesta restaurant into a network comprising its Corporate Headquarters which houses more than 1,600 employees across the corporate office, a central kitchen in Tai Seng, a procurement office in Japan, and more than 70 F&B outlets.
For the past 1 year, RE&S has realized a total shareholder of more than 200%. Most of the returns are achieved through capital gain (15.2 cents per share), while the rest came from dividends payable to shareholders (1.7 cents per share).
The strong performance can be seen from the recovery in F&B industry, which was helped by the relaxing of measures that allowed for dine-in. Also, the consistent insider purchases by Mr. Hiroshi Tatara, who is the founder of RE&S, also contribute in the rise in share price to a certain extent.
Based on the current share price of S$0.23, this translates into a dividend yield of 5.87%.
HC Surgical Specialists Limited (“HCSS”) was listed on SGX since 3 November 2016. HCSS and its subsidiaries is a medical services group primarily engaged in the provision of endoscopic procedures, including gastroscopies and colonoscopies and general surgery services with a focus on colorectal procedures across a network of 18 clinics located throughout Singapore.
For the past 1 year, HCSS has achieved a total shareholder of more than 75%. Most of them came from capital gains (21.0 cents per share), while the remaining came from dividends (4.0 cents per share).
With the pent-up demand for medical services post circuit breaker, this has allowed HCSS to ride on the tailwinds and has seen significant demand for their medical services. This resulted in a vast improvement in its financial performance in their latest financial year.
Based on the current share price of S$0.54, this translates into a dividend yield of 7.40%.
To conclude, a mixture of decent dividend yields, and capital gains are the perfect scenario for all investors. This will not only allow investors to achieve an attractive cashflow in the form of dividends, but also growth in their deployed capital.
Investors could take the opportunity to deep dive into these 3 companies for a start.

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