Following counters were shortlisted among STI constituents
because of their strong cash or cashflow position as well as high
dividend yield > 4%.
ComfortDelgro:
Over past three years, the public transport operator saw its price peak
~ 3.2, and bottom ~ 2.36. Operating in utility sector, it's dividend
growth rate is attractively > 8% annually. Current trading price
translates to
dividend yield ~ 4.3%.
Major downside risk came from Taxi segment which is facing stiff
competition from Uber and Grab. However second half of 2017 could see
more contribution from rail segment since Downtown line stage III shall
commence on 2017Q4. Another price catalyst is potential fare price
review by Public Transport Council.
http://www.straitstimes.com/singapore/transport/public-transport-council-starts-review-of-fare-formula-ptc-chairman-says-service
SingTel:
The leading domestic Telco has been consistently trading between 3.4 to
4.5 over past 5 years. Recent downfall was due to stiffer competition
from both local and overseas market. The company has been raising stakes
on overseas business, so as to ease up margin pressures from SG market.
Market watcher Gartner expected that worldwide expenditure on
information security is expected to grow 7.6% yoy to USD90b in 2017 and
reach USD113b by 2020. Singtel has been position to benefit from the
trend through its exposure from business entities: Trustwave, Amobee and
DataSpark. Upcoming >$2b worth of IPO of Netlink could bring special
dividend to shareholders. Current shares price translates to
dividend yield > 4.4%, excluding potential special dividend.
http://www.businesstimes.com.sg/companies-markets/singtel-gets-nod-from-sgx-for-netlink-trust-listing
ST Engineering:
The local defense and engineering group saw its shares price surging in
beginning of 2017. Price has been range bouncing between 3.62 to 3.85,
which translates to
dividend yield ~ 4%.
Project order book on latest quarter reached 13b, which is around
record high level. The majority sales to US originated from US-based
facilities, so it shall be benefited from Trump's proposed tax cut as
well as potential higher military defense budget.
