Why I’m Wary of StarHub’s Dividend Yield of 6%

StarHub Ltd (SGX: CC3) is well-known as a high dividend-yielding stock. In its 2018 annual report, the telco commented: “In line with past practice, StarHub remains the only local telco that pays dividends quarterly since 2005, with one of the highest yields in 2018.”

With a dividend yield that is way higher than the stock market in general, StarHub is sure to attract retirees and income-hungry investors alike.

However, before we invest in StarHub shares for its dividend, we should find out if the dividend yield is sustainable. If it’s not sustainable, investors may end up investing in a dividend trap.

As for me, I’m not all too excited about StarHub’s high dividend yield as I think that it’s unsustainable.

Let me explain why by looking at things like its dividend yield, dividend history, and most importantly, its dividend sustainability.

StarHub Dividend Yield

StarHub’s share price is currently at

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