Follow up on Singtel 5.9% yield – Are dividends at risk?

The last post on Singtel generated quite a lot of responses on Facebook which I didn’t find surprising given the widespread ownership of the stock.

One of the interesting comments which I thought I re-share here along with my thoughts for the benefit of everyone:

Impact of airtel is minimal, provided their management dont enter price war and burn cash which will lead to big losses.

If $0 profit and loss, then no impact to singtel’s profit cos contribution is insignificant.

So just a re-cap, Singtel’s group share of associates pre-tax profits took a hit from its India operations – which in all fairness is really a small percentage of its overall profits.

In the last post, I talked about how you have to look at free cash flow generation to understand if dividends are sustainable.

Since Bharti Airtel is contributing negligible amounts of dividends to that free cash flow, …