Singtel shares gained more than 1% against the market trend in Monday trading.
Singtel is our home-grown telco giant and also blue-chip darling.
From mobile services (which include calling, roaming, data services etc) to Enterprise ICT services (which include government and enterprise projects e.g digitalisation), Singtel’s business divisions demonstrate high barriers to entry.
Singtel doesn’t rely solely on the Singapore market for revenue contribution.
In FY22, its Australia’s Consumer segment revenue stood at 43.2%, or A$6.6 billion of total group revenue of S$15.3 billion.
Across other regions, Singtel gets 13.5%, or S$2 billion, of its group revenue from its regional associates, which takes in contributions from Indonesia, Philippines, India, and Africa.
Not to forget, Singtel’s business-to-business (B2B) arm, which comprises NCS and Group Enterprise, are deeply rooted in government projects and data centre scale ups.
Together, they make up about S$6.1 billion (NCS: S$2.3 billion, Group Enterprise: S$3.8 billion) of its FY22’s revenue.
Essentially, B2B businesses make up about 40% of Singtel’s total revenue.
With the 5G scale ups and the different initiatives that Singtel has done to unlock value for shareholders, Singtel’s moat should become even stronger over time.
Singtel has a dividend policy to pay out 60-80% of underlying net profit.
Investors who are looking to ride Singtel’s long term growth while also being paid in dividends can consider investing in the company.
Singtel proposed a final dividend of S$0.048 for FY2022, which was double that of S$0.024 in FY2021.
Based on the total dividend per share of S$0.093 Singtel paid out for FY2022, and at a unit price of S$2.58, this translates to a dividend yield of 3.6%.
Comments