Fantastic Dividend payouts from Singapore Telecom and SIA

Singapore Telecom (Singtel) and Singapore Airline (SIA) released their financial results yesterday for the financial year 1 April 2010 to 31 March 2011.

Key Performance Numbers for two companies are provided below.

Singtel

Net Profit $3.8 billion (down 2.1%)
EPS    23.8 cents (down 2.9%)
Total dividend per share  25.8 cents (inclusive of 10 cents special dividend)
Dividend yield 8.1% (based on share price as at 12 May)

Net tangible assets per share 88.6 cents (up 6.1%)
Share price at 12 May 2011 was $3.16

SIA

Net Profit $1.09 billion (up four times)
ROE   7.9% (increase by 6.3 % points)
EPS     91.4 cents (up four times)
Total dividend per share  $1.40 (inclusive of 80 cents special dividend)
Dividend yield 9.8% (based on share price as at 12 May)

Net assets per share $11.89 (up 5.2%)
Share price at 12 May 2011 was $14.26

What stands out for both companies is the fact that they decided to pay a special dividend for the financial year. Singtel proposed to pay 10 cents special dividend and SIA proposed to pay 80 cents special dividend. The total dividend yield will be 8.1% for Singtel and 9.8% for SIA based on yesterday’s closing share prices. These are very good payout for existing shareholders for the current financial year.

If we exclude the special dividends, Singtel pays out 66.3% of earnings as normal dividend and SIA pays out 65.6%. These are good dividend payout ratios.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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