Making money is great. But keeping the money you made is critical.
As a comparison, the yields for the very safe and large consumer companies listed on Bursa are in the range of 3.6% to 4.7%. These are companies like Nestle and British American Tobacco. These companies are extremely well managed with excellent track record on governance and transparency. Their earnings are very stable and are market leaders for their products.
SingTel is both a growth and defensive stock, pays a Sing dollar dividend yield of 4.5% and is trading at a reasonable valuation. SingTel is definitely worth a closer look for anyone looking to mitigate risks in their existing stock portfolio.
There is, however, no need to rush as it is a huge company and the stock is unlikely to go up by 10% like what happened to Daiman last week.
This article is published in the upcoming Edge.