Shares & Derivatives
3 Reasons Why Keppel Corp is Unsuitable as a Dividend Stock
By The Smart Investor  •  August 5, 2020
Blue-chip companies are named as such due to their size and long track record. These factors make them popular among investors who are seeking the stability of a well-established company. However, being businesses, even blue chips can fall on tough times if they do not play their cards right. And when it comes to searching for suitable dividend-paying stocks, the ability to successfully navigate crises is an important attribute to look out for. The COVID-19 pandemic has thrown a huge wrench into the growth plans of many blue-chip companies. Keppel Corporation Limited (SGX: BN4) is one of them. The conglomerate with diverse operations in offshore and marine, property, infrastructure and investments recently released its first-half fiscal 2020 earnings (1H 2020). Unfortunately, it was a downbeat set of earnings, with revenue dipping slightly from S$3.3 billion to S$3.2 billion. Keppel Corporation also took a hefty S$930 million impairment charge, resulting in a sizable loss of S$537 million for the quarter....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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