ComfortDelgro (CDG) is a Singapore private transport company with a wide geographical foot print. It provides a long term average earnings yield of 6.22%. Currently, its historical dividend yield is 5%.
CDG has been in the news due to increased competition from disruptive ride sharing companies such as Uber and Grab. These companies have large capital backing, was able to provide a lot of incentives for taxi drivers to switch over to driving private cars to pick up passengers instead of the traditional taxi.
As such, the market took down CDG’s stock price. When I started researching into CDG it was at $2.50. Many say it was cheap for a business of this profile. Then it dropped to $2.30. People say its cheaper.
There are a lot of voices that say CDG is done for.
At the time of writing the share price is $2.04.
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