Brokers' take

Singapore Airlines (SIA) | Buy Oct 17 close: S$9.33 Fair value: S$10.71 OCBC Investment Research, Oct 17

SIA's share price has dropped 23 per cent from its peak of S$11.80 around end May this year, and is now trading at its 52-week low. At its Tuesday close of S$9.15, this is a shade off the 2008 crisis low of S$9.05, and is just 11 per cent higher than the 2002-2003 SARS crisis low of S$8.25.

Though consensus is estimating a dividend yield of about 4.2 per cent, we note that this is likely based on last year's dividend of S$0.40/share, which may or may not be sustained given there is historically less consistency in the group's dividends compared to other Singapore-listed blue chips.