SingTel’s share price closed at $3.37 last Friday (13 April 2018). Is it time to buy SingTel?
I won’t be doing any analysis here but please refer to the Stock Investment Framework which is what I use to derive at an investment decision.
SingTel is of course one of the component stocks of the STI index but regardless of that, it has proven earnings for many years. It has also since diversified its businesses geographically into many countries. For this reason too and that it has taken on M1 and StarHub as competitors very well before, I am also not too concerned about the entry of the 4th telco TPG.
SingTel gives out $0.175 of dividend payout a year and based on the stock price of $3.37, the dividend yield currently is almost 5.2%. While some of the regional associates SingTel owns are probably still growing, as a whole I don’t see that SingTel is a growth stock.
To me, it is a dividend stock and at 5.2% yield as compared to what we can get from bank interest rate, t is very attractive.
What about business stability and SingTel’s ability to at least maintain its current earnings for the next say 5 years? And more importantly, its ability to sustain the current dividend payout.
SingTel has a very solid management team and as such you will get some assurance that its business performance would probably be quite predictable.
I have a certain percentage of my portfolio comprising of dividend stocks from SGX. Stock prices move up and down because of the mood swings of Mr Market, sector rotations, current geo-political and economic issues etc. I personally think there is an opportunity here to add on to my portfolio with this dividend gem. Good luck.
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