Data centre push
The Straits Times Index is at record levels and Singapore Telecommunications (Singtel) shares have doubled since the start of 2024. Operational turnaround helped, as the company bit the bullet and wrote down struggling investments in ill-fated new ventures.
The kicker for the current run, however, is Singtel’s clearly articulated capital management strategy, which is guiding higher dividends, paid in part through the well-timed monetisation of its portfolio of regional assets. Under the plan dubbed ST28, Singtel is committing to additional variable dividends of between 3 cents and 6 cents, to be paid from the balance of its divestment proceeds after monetising its sprawling portfolio of assets, including, most notably, regularly trimming its stake in Bharti Airtel. Investors cheer the current run in Singtel’s share price, but some wonder what’s next after the company’s FY2028 results.
