On 15 May 2019, Singtel announced a set of disappointing full year FY2019 results that saw the telco recording sixth consecutive quarter of declining profits. However, the market did not react adversely. Instead, Singtel share price had been creeping upward in recent weeks. No prize for guessing but investors must be biting the bait of Singtel dividends and buy into this counter.
Can Singtel dividends really be your ticket to financial freedom? With an operating history of 140 years, Singtel dividends track record is certainly impressive. But in this blog, I have always advocated readers not to judge a stock solely by its dividend yield. Thus, in this article, I will examine not just the quality of Singtel dividends, but its overall business fundamentals and growth outlook.
Obviously, investors must have heaved a sigh of relief as Singtel share price recovered 14% from a low of $2.88 in the start of the year. However, it had not been a smooth ride as the recovery was tempered with several pull-backs. The recent announcement of Singtel dividends of 10.7 cents per share must have led to the bullish form as investors are finding Singtel shares attractive again. And rightly so. After all, many older folks out there are holding Singtel shares and depend on Singtel dividends for passive income.
Singtel share is one of biggest SGX-listed companies that had withstood the test of time because of its massive investment moats and fantastic free cash flow. Notwithstanding this, it does not mean that investors should buy this stock indiscriminately. For those who bought Singtel shares at a high of $4.00 in 2017, they would be sitting at paper losses even if the Singtel dividends distributed were factored in.
Whilst there is nothing wrong with building a dividend portfolio with Singtel shares, you really need to set appropriate entry level to protect against the downside risks. There is no point in collecting the annual Singtel dividends but suffering from massive paper losses at the same time.
Singtel dividends sustainable?
If investors look back, the track record of Singtel dividends had been [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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