It was not too long ago that the local telecommunication companies (telcos) were touted as being steady dividend payers.
Back then, there were three listed telcos: Singtel (SGX: Z74), the bellwether telco stock, StarHub (SGX: CC3) and MobileOne, or M1.
M1 was taken private by both Keppel Corporation Limited (SGX: BN4) and Singapore Press Holdings Ltd (SGX: T39) in late 2018.
Since then, the two remaining listed telcos have seen their business under pressure, even before the effects of the pandemic.
The weakness in their business showed in the telco’s dividend payouts.
In 2016, StarHub used to pay out S$0.20 in annual dividends, but this figure has since shrivelled more than 50% to just S$0.09 in 2019.
Singtel has not been immune to the troubles within the industry as well.
For the first nine months of fiscal 2021, the telco reported a 7.7% year on year decline in operating revenue....