Current Analysis: Singapore Telecommunications


person using macbook pro on black tableImage Source: UnsplashSingapore Telecommunications Ltd (SGAPY) is Singapore’s leading telecom company. It owns extensive wired and wireless networks offering data and voice services to a broad customer base.Singtel’s diverse investment portfolio spreads across the region. The firm wholly owns Optus in Australia and minority equity stakes in Airtel (29%) in India; Telkomsel (35%) in Indonesia; Globe Telecom (47%) in the Philippines; and Advanced Information Services (23%) and Intouch (21%) in Thailand. Singtel is majority-owned by the Singapore government.The company was incorporated in 1992 and is headquartered in Singapore.Three key data points gauge Singtel or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.SGAPY PriceOver the past year, Singtel’s share price rose 7.4% from $17.93 to $18.24 as of Tuesday’s market close.If SGAPY stock trades in the range of $17.00 to $20.00 this next year, its recent $18.24 share price might rise to $19.00 by next year. Of course, Singtel’s price could drop about the same $0.77 estimated amount or more.My upside estimate of $0.77, however, is a few cents higher than the average annual price gain by SGAPY over the past three years.SGAPY DividendSingtel Corp has paid variable semi-annual dividends since June 30, 2011.  SGAPY’s most recent  SA dividend, of $0.574 was paid on August 24. A December dividend has not yet been declared. Forward-looking SGAPY $0.77 annual dividend yield for would be 4.01%SGAPY ReturnsPutting it all together, we add the estimated forward-looking dividend of  $0.77 to my estimated price upside of $0.76 and find a $1.53 gross gain.At Tuesday’s $18.24 closing price, a little over $1000 would buy 55 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.18 per share.Subtracting that likely $0.18 brokerage cost from the $1.53 estimated gross gain per share makes a net gain of $1.35 X 55 shares = $74.25 or about a 7.2% net gain.You might choose to pounce on Singapore Telecommunications Inc shares. SGAPY is an expanding telecommunications company. It majority owned by the Singapore government.  Furthermore, the estimated $40.10 dividend income from $1k invested is about 2.2 times greater than the price of a single share.The question of what will happen to SGAPY’s price and dividend is yet to be answered.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: KDDI
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