SingTel

[investingsgx]

Comparing other players in Telecommunication sector in Singapore, all having similar if not better yield. Will you still go with Singtel?

For me, at the right Price and the right Time (close to Dividend declaration time), I'm ok to be vested in any of the 3 TELCOs.

For SingTel, despite having the lowest Yield, the key attraction (when right price, right time condition is met) is the lowest Dividend Payout Rate. For FY12 (Mar) it was ~63% vs M1 80% for FY11 (Dec-11) and StarHub >100% since FY09 (Dec) ie. paying from FCF. For me, that may mean SingTel has some margin to either pay better dividends or maintain the DPS even if EPS declines.

Although Singtel price may not be expensive now. Not cheap either. But i think we should look at the bigger picture of why Temasek reducing its Singtel stakes and are also looking to reduce its stakes in Standard Chartered to raise capital.

It is an indicator that the bear may be coming.