Singtel dethroned

For years, Singtel has been my largest holding. At one point, it was almost 15-20% of my total investment holding. Just this week, it has been dethroned. It moved from first to third. Suntec Reit has become my largest holding and DBS is second. Suntec Reit, DBS and Singtel are each about 4% of my holding today.

Part of the reason for the “downfall” of Singtel is the constant decline of its share price since 2016.

In Sep 2016, its share price was $4.03, 2017 Sep was $3.73, 2018 Sep $3.20, 2019 Sep $3.14 and today, it dropped to $2.21. In a short 4 years period, its share price is nearly halved. In Sep 2016, it was a $51 Bln company while today, its a $26 Bln. Another reason could be the spin-off of Netlink Trust last year which has a current market cap of $3.75 Bln. It is extremely painful to watch the constant declining share price especially when it was the largest holding I had.

I wonder how long the shareholders is willing to tolerate the current CEO.

She has been on the seat for the last 13 years and she cannot avoid the responsibility for Singtel’s downfall. I personally feel that a new person(s) and a refreshed strategy may be needed at the top of Singtel’s house. We cannot continue to do the same and expect things to change.

In fact, I tried to average down my cost by accumulating more Singtel at each time it reached a lower cost but just to see it broken soon after. I used to console myself that even if I don’t get capital gain, I would get 17.5 cents of dividend per year. That’s about 5% yield. But in the last quarter, Singtel cut its final dividend by half from the usual 10.7 cents to 5.45 cents. Sigh.

Assuming that Singtel also halves its interim dividend, its current dividend yield at $2.21 is 3.9%. Some of you may say its still not too bad and I agreed … given the low yield across many investment classes.

However, I actually expect closer to 5% for a telco company.

Hence, technically I would accumulate only at about $1.75. But there is no absolute certainty that it would reach $1.75 and maybe the economy would recover soon. At current level, I think it is good enough for me to start picking it up and accumulate more if it goes down further.

Let’s see if Singtel can regain its throne again 🙂

In case you are interested, my top-10 holdings are (mainly banks and Reits):

1Suntec Reit
2DBS
3Singtel
4OCBC
5OUE Commercial Reit
6UOB
7MapleTree Commercial Reit
8Manulife Reit
9 Olam 
10Ascendas Reit

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