Rain or Shine, Dividend Always on Time

Wellcall may not be the loudest stock in the market, but it continues to stand out for the things that matter: consistency, balance sheet strength and consistent shareholder returns with quarterly dividends.

For 1QFY26, the company maintained its quarterly dividend payout at 1.60 sen per share (117% of their PAT), even though their top and bottom line were impacted from a softer global demand.

This consistency is not new. Since its listing in 2006, Wellcall has built a solid record of shareholder returns, with cumulative dividends of around RM500 million, while also maintaining a debt-free position since FY2018.

At a share price of around RM1.24, the trailing dividend yield (including special dividend) remains attractive at 6.13%, comfortably ahead of many fixed deposit rates and not too far from EPF-type returns depending on entry price (dividend rate of 6.15% declared by EPF for 2025).

What makes Wellcall interesting is that the business is built on a fairly resilient foundation. The group manufactures industrial rubber hoses, exports to more than 70 countries, and generates around 90% of its sales from export markets.

The business also benefits from replacement demand, as industrial rubber hoses typically need to be replaced after around 3 to 12 months depending on usage. That creates recurring demand from customers across industries. On top of that, Wellcall has maintained customer retention above 95%, supported by product quality, customisation capability and reliable delivery.

Over the years, the company has stayed resilient through different market cycles, including the global financial crisis, Covid disruptions, forex volatility and weaker external demand. That staying power says a lot about the strength of its business model.