Sunday, 26 May 2013

Defensive Blue Chip yield stock: StarHub or Kep Corp???

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?
 
 
 
 
  1. StarHub @ 4.7% dividend yield @ $4.26
  2. 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
 
 
 
?
 
 












 


3 comments:

  1. But no one can be sure historical number data will repeat. So answer is don't know.

    ReplyDelete
    Replies
    1. Kepcorp 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.

      Lately, 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. :)

      Delete
  2. 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.

    Of course, that was history.

    ReplyDelete