Mainstream
New initiatives to drive Signature’s growth
Ng Wai Mun | 10 Nov 2017 00:30
The company is set to gain from higher number of condo projects with kitchen systems

Although Signature International Bhd had an impressive dividend payout for FY16, it is interesting to note that the company does not have an official minimum dividend policy.

Group MD Tan Kee Choong tells FocusM that the kitchen cabinet and wardrobe manufacturer and supplier has only a dividend guideline. “We have no minimum dividend payout policy. We do have a guideline though, where 30% of the profit after tax is allocated for dividends.”

The company paid out a total dividend of 12 sen for the financial year ended June 2016 (FY16), equivalent to a yield of 13.7%.

As such, the counter is an attractive dividend play to mid-term and long-term investors. For FY16, the company paid out a total dividend of RM28.5 mil, which is equivalent to 56% of its FY16 after-tax profit of RM50.6 mil.