The Weekly Nibble: Best Dividend Shares
- Original Post from The Motley Fool Sg

Here are some of the most popular articles that have appeared on The Motley Fool Singapore’s website for the week.


Singapore’s Top 5 Dividend Shares Among the World’s Best


Do you like income stocks?


In this article, I looked at the top five Singapore-listed companies that are part of the FTSE All-World High Dividend Yield Index sporting the highest dividend yields. The FTSE All-World High Dividend Yield Index contains 1,389 globally-listed shares that have a higher-than-average dividend yield. The index does not include real estate investment trusts (REITs) and stocks that are forecast to pay no dividend over the next 12 months.


Companies discussed in the article include Hutchison Port Holdings Trust (SGX: NS8U), StarHub Ltd (SGX: CC3), Singapore Telecommunications Limited (SGX: Z74), M1 Ltd (SGX: B2F) and Venture Corporation Ltd (SGX: V03).


2 Singapore REITs I Am Watching This Week


My Foolish colleague, Jeremy Chia, touched on why he kept a lookout for two REITs – Keppel DC REIT (SGX: AJBU) and CapitaLand Mall Trust (SGX: C38U) – when they released their earnings during the week.


Keppel DC REIT released its earnings on 22 January while CapitaLand Mall Trust announced its financial results on 23 January.


3 Singapore Blue Chips That Have More Than Doubled Their Profits In The Last Decade


In this piece, Lawrence Nga explored a total of three Straits Times Index (SGX: ^STI) stocks that have more than doubled their profits in the last 10 years. Do jump into the article to know what the companies are.


Maximise dividends on your REITs with our brand-new Complete Guide To Buying The Best Singapore REITs. We reveal everything we think you need to know about finding the best REITs that hands you a fat dividend cheque ...even if you have no REITs experience at all! Get instant access to your 100% FREE, actionable, 42-page PDF guide here.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.


$STI(^STI.IN) $Keppel DC Reit(AJBU.SI) $M1(B2F.SI) $CapitaMall Trust(C38U.SI) $StarHub(CC3.SI) $HPH Trust USD(NS8U.SI) $Venture(V03.SI) $SingTel(Z74.SI)

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Starhub Ltd’s Share Price Plunged 37% In The Last 12 Months. Here’s Why.
- Original Post from The Motley Fool Sg

StarHub Ltd (SGX: CC3)is one of thethree companies in the telecommunication industry, behindSingapore Telecommunications Limitedand ahead ofM1 Ltdin market cap. StarHub has five business segments, namely, Mobile, Pay TV, Broadband, Fixed Network Services and Handset sales.


In the last 12 months, StarHub’s share price was down by 37%. In this article, let’s try to understand what might have caused the decline.


Reasons for decline


There are many reasons that cause the stock price to move. Generally, stock price movement is driven either by business performance or investor’s sentiment.


The former is related to how a business performs in a given period, looking at metrics like growth, margins, production and others. Here, the ultimate driver is profit.


The latter is driven more by investors’ overall mood, which is described by emotional pairs such as greed and fear, optimistic and pessimistic, bull and bear etc.


In this case of Starhub, I believe the former was the main culprit causing the decline in share price.


Here are some numbers.


For the year ended 31 December 2018, Starhub reported that revenue fell 2.0% year-on-year to S$2.36 billion. Similarly, profit attributable to investors was down 26.2% year-on-year to S$201.5 million. The weaker profitability was due to poor performance in the Mobile and Pay TV segments. Consequently, Starhub’s free cash flow was 21.4% lower at S$173.8 million as compared to S$221.3 million in the same period last year.


Moreover, StarHub would be paying out lesser dividend from 2019. As Starhub is generally categorised as an income stock (mainly due to its strong dividend track record), the reduction in dividend might have prompted income-focused investors to reduce their holding.


In all, the weaker financial performance and the dividend cut might have contributed towards the decline in Starhub’s share price.


What’s next


Going forward, Starhub expects 2019 to remain challenging. Based on its latest outlook, Starhub forecasts revenue to remain flat to a decline of 2% year-on-year. Moreover, dividend pay-out will fall from the current four cents per share in each quarter to 2.25 cents per quarter (or at least 80% of net profit attributable to shareholders).In other words, Starhub’s investors will need to embrace another challenging year ahead.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebookto keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.


$StarHub(CC3.SI)

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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 3
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan.


Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


Inpart 1 and part 2, we looked at the REITs’ track records of growth in distribution per unit (DPU) in the last decade, as well as their debt profiles. Frasers Centrepoint Trust came in ahead in both tests. In this article, we’re looking at the last part of our comparison: valuation.


The showdown


We will focus mainly on two valuation metrics: the price-to-book (P/B) ratio and the distribution yield.


Let’s begin with the P/B ratio. Frasers Centrepoint Trust and Capitaland Mall Trust have P/B ratios of 1.1 and 1.2, respectively. Frasers Centrepoint Trust’s lower P/B ratio suggests it has a lower valuation.


Frasers Centrepoint Trust and Capitaland Mall Trust have distribution yields of 5.2% and 4.8%, respectively. The higher a REIT’s yield, the lower is its valuation. Again, we can see that Frasers Centrepoint Trust has a lower valuation based on distribution yield.


Conclusion


Frasers Centrepoint Trust appears to be the clear winner thanks to its better growth in distribution per unit (DPU), better debt profile, and lower valuation.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.Stop worrying about the uncertain REITs market with our new Complete Guide To Buying The Best Singapore REITs. We give you 3 quick ways to easily value your REITs so you save tons of research time. Value your REITs today so you know exactly when to buy, sell or hold. Simply enter your email here and we will rush the 42-page PDF immediately to your inbox...for FREE!


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


$CapitaMall Trust(C38U.SI) $Frasers Cpt Tr(J69U.SI)

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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 2
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan.


Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


Inpart 1, we looked at the companies’ track records of growth in distribution per unit (DPU) over the last decade, and Frasers Centrepoint Trust came out ahead. In part 2, we’re looking at the next comparison: debt profile.


The showdown


Let’s begin with Frasers Centrepoint Trust. As of 31 December 2018, Frasers Centrepoint Trust had a gearing ratio of 28.8%. Its weighted average term to maturity is 1.8 years, and the all-in cost of borrowing is at 2.7%.


As of 31 December 2018, Capitaland Mall Trust had a gearing ratio of 34.2%. Its weighted average term to maturity is 4.4 years, and the all-in cost of borrowing is at 3.1%.


It looks like Frasers Centrepoint Trust has a lower gearing and borrowing cost compared to Capitaland Mall Trust. However, Frasers Centrepoint Trust’s term to maturity is lower, at 1.8 years (the REIT has secured commitment for refinancing, which will increase the term to maturity to 2.6 years upon completion).


Conclusion


Both REITs have acceptable debt profiles. Frasers Centrepoint Trust is slightly better positioned in the long run (from a growth perspective) mainly due to its lower gearing and cost of borrowing.


Let’s move on topart 3 of the comparison.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


$CapitaMall Trust(C38U.SI) $Frasers Cpt Tr(J69U.SI)

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Better Buy: CapitaLand Mall Trust or Frasers Centrepoint Trust? Part 1
- Original Post from The Motley Fool Sg

Frasers Centrepoint Trust (SGX: J69U) and CapitaLand Mall Trust (SGX: C38U) are two real estate investment trusts (REITs) with a focus on retail assets.


The former owns properties such as Causeway Point and Northpoint City North Wing, while the latter is the owner of 15 malls such as Tampines Mall, Junction 8, and Funan. Given that both REITs are exposed to retail-related properties, investors might want to know which is a better buy now. To find out, we’re putting the duo to a test made up of three parts.


In this first test, we’re looking at the companies’ track records of growth in distribution per unit (DPU) over the last 10 years.


The showdown


From fiscal year 2009 to fiscal year 2018, Frasers Centrepoint Trust has grown its DPU from 7.51 Singapore cents to 12.015 Singapore cents. In other words, its DPU was up by 60.0% during that period, giving investors a compounded annual growth rate (CAGR) of 5.4%.


From fiscal year 2009 to fiscal year 2018, Capitaland Mall Trust has grown its DPU from 8.85 Singapore cents to 11.50 Singapore cents. In other words, DPU was up by 29.9% during that period, giving investors a CAGR of 3.0%.


Conclusion


Both REITs have grown their DPUs over the last decade, but Frasers Centrepoint Trust grew its DPU at a higher rate during that period.


Let’s move on topart 2 of the comparison where we will look at their ratio.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebook to keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Frasers Centrepoint Trust and Capitaland Mall Trust.


$CapitaMall Trust(C38U.SI) $Frasers Cpt Tr(J69U.SI)

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StarHub Ltd Is Trading Close To Its 52-Week Low Share Price: Is It Cheap Now?
- Original Post from The Motley Fool Sg

StarHub Ltd(SGX: CC3) is one of thethree listed companies in the Singapore telecommunication industry.


At the current price of S$1.66, StarHub’s stock price is 5% higher than its 52-week low of S$1.58. This raises a question: Is StarHub cheap now? This question is important because if the company’s shares are cheap, it might be a good opportunity for investors.


Unfortunately, there is no easy answer. However, we can still get some insight by comparing StarHub’s current valuations with the market’s valuation. The three valuation metrics I will focus on are the price-to-book (PB) ratio, price-to-earnings (PE) ratio, and dividend yield.


I will be using the SPDR STI ETF (SGX: ES3) as a proxy for the market; the SPDR STI ETF is an exchange-traded fund that tracks the fundamentals of Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI).


StarHub currently has a PB ratio of 5.2, which is higher than the SPDR STI ETF’s PB ratio of 1.2. Similarly, its PE ratio is higher than that of the SPDR STI ETF’s (14.4 vs 11.4). On the other hand, its dividend yield of 8.4% is higher than the market’s yield of 3.6%. The higher a stock’s yield is, the lower is its valuation. Do note that StarHub has cut its dividend from the2019 financial year, so the adjusted dividend yield would be much lower at 5.4%.


In sum, we can argue that StarHub is priced at a premium to the market average due to its high PB and PE ratios. Still, dividend investors might be attracted to the company due its high adjusted dividend yield.


Click here nowfor yourFREEsubscription toTake StockSingapore, The Motley Fool’s free investing newsletter. Written byDavid Kuo,Take Stock Singaporetells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.


TheMotley Fool’s purpose is to help the world invest, better.Like us on Facebookto keep up-to-date with our latest news and articles.


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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.


$StarHub(CC3.SI)

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