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Are Keppel’s dividends truly unsustainable – or just misunderstood?

The company’s shares have rallied over the past year, generating a total shareholder return of 58.5% in 2025

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Jude Chan

Jude Chan

Published Wed, May 6, 2026 · 06:18 PM
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    • Keppel chief executive Loh Chin Hua is transforming the industrial conglomerate into a global asset manager and operator.
    • Keppel chief executive Loh Chin Hua is transforming the industrial conglomerate into a global asset manager and operator. PHOTO: BT FILE

    ​[SINGAPORE] The recent clash between Keppel and activist research firm Corporate Monitor highlights a vital question for investors: Are the dividends from the restructured Keppel truly sustainable?

    ​The activist report pulled no punches. It argued that Keppel’s payouts are a mirage, funded by selling off assets rather than by generating operating cash flow.

    Pointing to a gap between reported profits and operating cash flow, Corporate Monitor painted a picture of a heavy balance sheet masking underlying weakness.

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