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.
- I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!
- WealthLions is my blog where I journal my trading ideas and share my opinions about the markets. If you like to be kept posted of my new blog posts and events, please join my Telegram Channel and subscribe to my mailing list. No spam, I promise.