(Source: Starhub)
Starhub has announced its FY2018 results on 14th February 2019. Besides a decline in its business, it has also announced a change in its dividends policy. Where it had given out 20c per share from FY2010 to FY2016, and then 16c per share in FY2017 and FY2018, it will be revising the dividend policy to at least 80% net profit. This is estimated to be 9c per share assuming Free Cash Flow stays constant.



Investors who have done their due diligence will have flagged out the unsustainable nature of its dividend (it was consistently above their free cash flow (FCF) - they were essentially funding part of the dividend from debt.)

With the change in its dividend policy, they will finally be giving out less dividends than their FCF. In my opinion, this is a step in the right direction and it piqued my attention. Will it shine

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