lue-chip companies are often prized as bellwether companies that can weather multiple business cycles.
The expectation is that these sturdy businesses can continue to pay out great dividends along the way.
However, the COVID-19 pandemic is a harsher crisis than most, as it exacts a significant economic toll.
With more people working and studying from home, public transport utilisation has correspondingly plummeted.
ComfortDelGro Corporation Ltd (SGX: C52), or CDG, has been feeling the heat due to this trend.
Ridership on MRT trains had plunged by 80% during Singapore’s circuit breaker period that lasted from early April till the start of June.
By early June, after these measures were lifted, ridership on buses and trains doubled but was still at 36% of the levels before the pandemic.
A survey taken in mid-July showed that public transport usage may not return to pre-pandemic levels anytime soon, if ever.
Nearly a quarter of respondents indicated...