Shares & Derivatives
11 things I learned from the Digi.com 2017 AGM
By The Fifth Person  •  July 13, 2017
Telecommunication companies are usually favoured by investors for their resilient business models and attractive dividend yields. However, over the past few years, industry prospects have become less appealing due to a maturing domestic market in Malaysia, slower growth, and downward pressure on earnings from heightened competition and increasing costs. In order to stay competitive and meet the changing trends in consumer demands (especially the demand for internet data), telcos are left with no other choice but to upgrade their infrastructure while improving their product offerings and service quality. Consequently, capex has risen significantly and affected profitability. For many years, Digi.com Berhad (Bursa: 6947) has been an investor favourite due to its steady yield and capital appreciation. However, the company’s high dividend payout ratio – Digi paid 99%, 110%, and 100% from 2014 to 2016 – has recently come into question with regards to the evolving industry landscape. Competitors Maxis ......
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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