Investors should reward, not penalise telcos that shift from yield to growth
Add BT as a preferred source
MAINBOARD-LISTED telco StarHub has long been viewed as a yield stock, thanks to its generous dividend payouts in the past. But this may not be the best strategy for the company in the current environment, and the market ought to recognise that.
Between 2011 and 2017, the company paid out S$0.20 a share in dividends annually - giving the stock a yield of between 4.5 and 7.5 per cent in those years.
In the face of technological disruption and other headwinds, however, StarHub has not been able to afford such generous dividends for some time. And its valuation has declined as a result.
TRENDING NOW
Nearly half of Apac’s wealthy expect market crash or correction, plan to rotate to cash: study
Shanda co-founder sells Tanglin Hill bungalow for S$76 million
Yeo’s, Tiger Beer and now Gardenia – flight of food manufacturing from Singapore might be just as planned
Johor property old hand KSL readies family handover amid market boom
