The market speculation is that Singtel shareholders are likely to receive special dividends because of the S$2.63B from the proceeds of Netlink Trust IPO.
Assuming Singtel maintains its payout ratio, the spinoff could grant proceeds of up to 9.8¢-11.6¢ per share. On top of FY18E DPS of 17.5¢, Singtel’s yield could hit a mouth-watering 7.6% at current prices.
I bought Singtel recently at $3.73 when Banker Chips appeared on my app. I did not plan to hold it for long, but with this rumour, maybe I will try to ride the trend a bit longer.