Singpost shareholders would be receiving their dividend of $0.027 on 15 July 2005. The last dividend of $0.023 was distributed on 30 November 2005. This brings the total dividend to $0.05 for this financial year. In the coming financial year, Singpost will distribute quarterly dividends.
Singpost has been trying to increase their revenue and profit by diversifying its services as its main revenue is in postage. They are trying to use their widespread post office in Singapore to help others reach their intended customers. In a recent news by Dow Jones, Singpost has tie-up with Prudential to offer Prudential's financial planning products and services. This will be the fourth financial service provided by SingPost. The first three are CASHome, ezyCash and SpeedCash.
Comment: Accessability to a huge crowd is the main point of Singpost and they are using this strength to improve its revenue to their advantage. It will be good for Singpost as long as it does not increase the operating cost by hiring financial advisors in providing this new service. Currently, I don't think the staff at Post Office will be capable of giving financial advice. The financial advice will be provided by Prudential financial advisers (Information from SingPost Website). Let hope this new service will increase the revenue and improve the dividend payout by Singpost.
Dividend Policy of Singpost:
Singpost has been trying to increase their revenue and profit by diversifying its services as its main revenue is in postage. They are trying to use their widespread post office in Singapore to help others reach their intended customers. In a recent news by Dow Jones, Singpost has tie-up with Prudential to offer Prudential's financial planning products and services. This will be the fourth financial service provided by SingPost. The first three are CASHome, ezyCash and SpeedCash.
Comment: Accessability to a huge crowd is the main point of Singpost and they are using this strength to improve its revenue to their advantage. It will be good for Singpost as long as it does not increase the operating cost by hiring financial advisors in providing this new service. Currently, I don't think the staff at Post Office will be capable of giving financial advice. The financial advice will be provided by Prudential financial advisers (Information from SingPost Website). Let hope this new service will increase the revenue and improve the dividend payout by Singpost.
Dividend Policy of Singpost:
| a) | Minimum payout raised The minimum annual net dividend payout has been raised by 19% from 4.2 cents per share to 5.0 cents per share. With this enhancement, SingPost will endeavour, barring unforseen circumstances, to make a total annual net dividend payout of 80 to 90% of net profit or a minimum net dividend of 5.0 cents per share, whichever is higher. Dividends paid by SingPost will be on tax-empt 1-tier basis. |
| b) | Quarterly dividend SingPost will make dividend payments on a quarterly basis, amounting to 1.25 cents per share each quarter based on the minimum base of 5.0 cents per share. Should the target dividend of 80 to 90% of net profit be higher than the minimum level of 5.0 cents per share, the difference will be paid out in the final quarter together with the regular dividend of 1.25 cents per share for the quarter. |
The dividend level is subject to regular reviews and will be based on the Group's financial performance and condition, investment requirements and other conditions deemed relevant by the Board.
Previous Post: Singpost
3 comments:
So buy, hold or sell?
I very tempted to sell as its price is at all time high now.
My personnel view is that I will keep it to earn dividend. Actually, based on $1.00 price you still get 5% return and they are going to pay you every quarter now. Unless there is bad decision make by the management, then sell or else can keep. Actually, I have minimum holding on this share. The decision is up to you. If you think you can find another share that have better growth than Singpost, sell it and shift your fund to another. Or else you can keep it for dividend. Please let me know if you are targeting another share. Please post it. Thank in advance :)
At aro' $1 and 5% yield, it shld be quite safe to hold on for a while.
Watch out for mkt signals,
1) If interest rate moves up to 3-4%
2) If REIT yield goes up to 6%
3) If Singpost price goes up or eanings drop, such that net div yield drops to 4% (or even 4.5%?)
then better get ready to sell :D
Post a Comment