If I had fresh capital to deploy today, I would only buy one of these two Singapore blue chips.
That might sound surprising.
After all, both Keppel (SGX: BN4) and ST Engineering (SGX: S63) have been among the best-performing Singapore large caps in recent years. Both trade above $10. Both remain high-quality businesses. And both are still held by many dividend investors.
But after reviewing their businesses, valuations, dividend yields and long-term growth prospects, I've come to a very different conclusion for each company.
In this video, I break down:
✓ Why the market no longer sees Keppel and ST Engineering as traditional dividend stocks
✓ How Keppel transformed from a capital-intensive conglomerate into an asset management and infrastructure platform
✓ Why investors are willing to pay over 30 times earnings for ST Engineering
✓ What must happen for both growth stories to continue working
✓ Why I think these two companies now occupy a very different role in an income portfolio
✓ And ultimately, if I had fresh capital today, which one I would actually buy — and why
More importantly, I think this raises a bigger question for dividend investors:
Have some of our favourite dividend stocks quietly become growth stocks?
Timestamps
00:00 If I could only buy one...
01:45 Why the market no longer sees them as dividend stocks
03:03 Keppel: From conglomerate to asset manager
05:17 ST Engineering: The market is paying for execution
07:22 Why investors are paying these valuations — and what must continue happening
09:15 The bigger question: What role do these stocks play in a portfolio today?
10:40 The opportunity cost problem
11:15 The Dividend Uncle's Take: Which one would I actually buy today?
12:50 Final thoughts
Disclaimer
This video is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult a licensed financial adviser before making any investment decisions. I own some of the shares and REITs discussed in this video, but what works for me may not work for you.
#SingaporeStocks #DividendInvesting #Keppel #STEngineering #SGX #DividendStocks #IncomeInvesting #LongTermInvesting #TheDividendUncle...
