Saturday, January 14, 2017

Singpost - Don't count on it for dividends

Singpost is not longer the high dividend paying stock it used to be with the change in dividend policy. With the increased shares due to placement, their latest half year earnings per share is illustrated to be 2.63 cents.

 Extrapolating this to a full year earnings per share = 5.26 cents.

With a 60% payout ratio = 3.156 cents
Dividend yield (last done price $1.495) = 2.11%
With a 80% payout ratio ( last done price $1.495) = 4.208 cents
Dividend yield = 2.81%

The range of 3.156 - 4.208 cents is a fall from the usual and consistent 6.25 cents.

To be fair to Singpost, the earnings per share does not take into account the following:
1) peak shopping season in the second half of the year
2) cost savings due to their Regional eCommerce Logistic Hub which opened only in Nov 2016.
3) Reopening of SPC retail mall in mid 2017
4) Completion of synergies between their acquisitions such as Jagged Peak and Trade Global

4th November 2016 Presentation
5th January 2017 Presentation

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