Just For Thinking ....
Dividend Investing Quiz time
Which one is the most likely defensive dividend yield play stock in SG market at last Friday market closing price and based on likely 2013 dividend payout?
- StarHub @ 4.7% dividend yield @ $4.26
- Kep Corp @ 4.1% dividend yield @ 10.91
What is your answer?
1 or 2?
Your answer is
Right?
Now Uncle8888 is asking you to study carefully into the table below
What did you see?
What is your answer now?
Still
?
Posts
But no one can be sure historical number data will repeat. So answer is don't know.
ReplyDeleteKepcorp has more room for price growth based on low P/E and assuming business can sustain earnings. The 0.6% difference in divy yield is insignificant. Will kepcorp's business slow down in the future, hence reflecting their low P/E? I dont know haha.
DeleteLately, analysts have talked up telcom shares and I think Starhub has limited upside. I may be wrong, but between the 2 companies, I choose Kepcorp. :)
If we take last GFC in 2008/09, KepCorp and Starhub price fell ~70% and 35% respectively. This means StarHub is better defensive stock than Kepcorp.
ReplyDeleteOf course, that was history.