Is Singtel (SGX: Z74) Stock a Good Buy Now? (No longer just a Telco…)
Last Updated on 4 weeks ago by Antony C.
Right now Singtel (Z74/ Z74.SI) share price is at SGD$4.860. At this price, Singtel is valued at a price-to-book ratio of 2.944 and a trailing distribution yield of 3.786%. With the current valuation, would I invest in it?
With the understanding of how to identify a good dividend stock, here are the 7 steps guide which I use to pick the Best Dividend Stocks in Singapore.
- Debt to Equity Ratio
- Dividend Yield
- Dividend payout ratio
- EPS Growth Rate
- Return of Equity (ROE)
- Price-to-Book Ratio
- MOAT
Disclaimer: I may or may not have invest in any of the stocks/REITs/ETFs, what’s listed here is only for entertainment purpose only and it should never be used as any form of investment advice. Past performance ≠ future results. While I’ve been investing for +15 years, I am still learning, this is my stock investment diary, and I wish to share what I learn during my investment journey so you may learn from both my success and mistakes. Enjoy!
Business Background
Singapore Telecommunications Limited is a leading communications technology group in Asia. Which is majority-owned (2019: 49.8 percent) by Temasek Holdings (Private) Limited.
With 140 years of history, Singtel provides a range of services.
Main Services Provided
- Telecommunications
- Digital services
Singtel’s target segments
- Consumers (Business to Customers)
- Enterprises (Business to Business)
Singtel’s Business Groups
- Group Consumer
- Group Enterprise
- Group Digital Life
Singtel Presents itself in the following Cities
- Singapore: Singtel, NCS, Nxera
- Thailand: AIS, Nxera
- India: Bharti Airtel
- Africa: Bharti Airtel
- Philippines: Globe
- Indonesia: Telkomsel, Nxera
- Australia: Optus, NCS
- Malaysia: Nxera
- Greater China: NCS
In total, Singtel serves over >800 million mobile customers in 20 countries.
1. Debt To Equity Ratio
Check for: Less than 0.5 D/E Ratio
Looking at the latest data online.
Singtel have a D/E ratio of 0.394.
This is below the 0.5 D/E Ratio.
With a D/E ratio of less than 0.5, this means the company is not overly leveraged, they are likely able to finance the company’s operations.
The company has a low risk of defaulting.
My Opinion: Pass
2. Dividend Yield
Check for: More than a 2.5% dividend yield
Singtel is known for it’s consistent dividend, and according to SGX.
For the Year 2025, Singtel pays a dividend of 0.182 which translates to a dividend yield of 3.786%.
This is higher than my target of 2.5%.
Looking at the distribution history, there is an huge increase in the dividends distributed these few years after the pandemic, which is a good sign.
| Year | Dividend in SGD |
|---|---|
| 2025 | 0.182 |
| 2024 | 0.168 |
| 2023 | 0.13 |
| 2022 | 0.119 |
| 2021 | 0.069 |
| 2020 | 0.106 |
| 2019 | 0.175 |
| 2018 | NA |
The year 2019, 20200, and 2021 are under the challenge of Covid 19. It is understandable that the company will want to keep most of its cash as a reserve.
And after the pandemic, we see a nice growth in the dividend which is very promising.
Since, it is higher than the risk-free rate (CPF OA Account) of 2.5%. I will give it a verdict of pass.
My Opinion: Pass
3. Dividend Payout Ratio
Check for: Less than 80% dividend payout ratio
For dividend payout ration, we don’t want it to be too high or it will be a red flag.
At the time of writing, a quick check online shows that the dividend payout ratio for Singtel is 33.25% which is below my threshold of 80%.
I personally think the payout ratio is quite reasonable, seeing that it is looking to expand in the region.
With the current payout ratio lower than 80%, it mean it is paying out using its earnings, and have enough for it to expand the company.
My Opinion: Pass
4. EPS Growth Rate
Check for: More than 10% EPS Growth
A growing Earning Per Share (EPS) will mean that the company is making money and is taking care of its shareholders.
In any company, we will like to see a constantly growing EPS for 5 years or more.
A quick check on the finances of the company online.
The EPS 5 year growth rate is a shocking 38.803%!
Yup, the EPS for Singtel is huge! That explains why the share price of Singtel have risen soo much in a short time.
My Opinion: Pass
5. High Return Of Equity (ROE)
Check for: More than 10% ROE
ROE is one of the most important ratios used by Warren Buffett, as Return on Equity is used to measure the ability of the company to generate income from shareholders’ money (equity). It is sometimes used as a measurement of the quality of management in the company.
- High ROE will mean good management of the shareholder’s money.
- Low ROE will mean bad/average management of the shareholder’s money.
At the time of writing, the ROE of Singtel have an ROE 15.81%.
This is really high for a company, but we need to take note that Singtel’s ROE do flatulate quite a bit over the past few years.
My Opinion: Pass
6. Price To Book Ratio
Check for: a P/B Ratio of less than 1.8
SingTel is a blue chip company with is commonly traded by the general public like you and me. Therefore, its price is usually traded at its book value or above.
At the time of writing, the current P/B ratio of Singtel is 2.944.
This means it is trading at a 294% premium to its book value!
However, having high P/B ratio is understandable since Singtel is well know brand, and sometimes, having a high P/B ratio don’t always means it is expensive.
My Opinion: Fail
7. MOAT
Check for: Not just having a MOAT, but a great MOAT
Singtel is a telecommunication service company with a business that is simple to understand. And it is the biggest Mobile Network Operators (MNO) in Singapore.
Before 2016, there are only 3 big telco in Singapore; Singtel, M1 and Starhub, which is also known as the BIG THREE.
In 2025, the BIG THREE is now; Singtel, Starhub and SIMBA (SIMBA acquire the telco business o0.
But in recent years there are a surge in the number of telecommunication providers, and also the introduction of Mobile Virtual Network Operators (MVNOs) which lease network capacity from the MNOs to offer competitive plans to consumers.
Main Mobile Network Operators In Singapore
- Singtel: The largest and most established operator, with extensive 5G coverage and the largest market share.
- StarHub: The second-largest operator, known for strong network performance and entertainment bundles; operates a 5G network jointly with M1.
- M1: 3rd largest operator known for competitive pricing and innovative services; operates a 5G network in partnership with StarHub and is in the process of being acquired by SIMBA.
- SIMBA Telecom (formerly TPG Mobile): The fourth MNO, known for budget-friendly data plans; it is acquiring M1’s telco business, pending regulatory approval.
Mobile Virtual Network Operators (MVNOs)
These are operators that lease network capacity from the MNOs above to offer their own services.
- Circles.Life: Operates on the M1 network; known for flexible, data-focused digital plans.
- GOMO: A digital-only sub-brand by Singtel, offering straightforward and flexible plans on the Singtel network.
- Giga!: A digital sub-brand by StarHub, known for competitive pricing and data rollover features on the StarHub network.
- MyRepublic: Operates on the M1 network; offers value plans often bundled with their broadband services (StarHub has fully acquired MyRepublic’s broadband business).
- redONE: Focuses on affordable cross-border plans, especially for users with ties to Malaysia, operating on the StarHub network.
- VIVIFI: Operates on the Singtel network, offering family-friendly and customizable plans.
- CMLink: Operated by China Mobile, offers plans with strong international calling and data roaming options using the Singtel network.
- Zero1 and ZYM Mobile: Other MVNOs offering various competitive plans, also operating on the Singtel network
Personally, I think the telecommunication industry is saturated, and as more people are moving from Prepaid Plan to Sim Only Plan, and the earnings of the company are further reduced.
Having said that, SingTel is still the main provider of telco service in Singapore.
Looking at it’s recent financial statement, it seems that Singtel is expanding in areas other than just being a Mobile Network Operator, but a data center, payment gateway and AI, which is quite impressive.
These will probably be areas where the future growth will reside.
According to Phil’s book Rule#1 investing, SingTel was having a “switching MOAT”, and a strong “brand MOAT”, which can be a good advantage over it’s competitors.
My Opinion: Pass
Stocks Scorecard Verdict: Singtel
Below is how I’ve scored SingTel.
| Metrics | Weightage | Score |
|---|---|---|
| Debt to Equity Ratio | High (2) | 2 |
| Dividend Yield | Low (1) | 1 |
| Dividend payout ratio | Low (1) | 1 |
| EPS Growth Rate | Low (1) | 1 |
| High Return on Equity (ROE) | Low (1) | 1 |
| Acceptable Price-to-Book Ratio | Low (1) | 0 |
| MOAT | Very High (3) | 2 |
| Total | NA | 8 |
Overall Score: 8/10
In 2017, SingTel sold NetLink Trust. A business that had a monopoly play in the industry, which in my opinion, is a very bad move.
But in recent years, with the change in the management team Singtel, is transforming itself from just a MNO to something much more, it is riding on the AI trends, and taking market shares at areas where it can leverage it’s current ability to reach it’s customers.
- Technology and Digital Services with NCS.
- Digital Infrastructure with Nxera.
- Cybersecurity with Trustwave.
- Digital Lifestyle & Innovation with Dash.
With that said, I see potential in Singtel, but with the current pricing, I think it is on the expensive side.
Why do I find some metrics more important than others?
There are 3 attributes in a company that Warren Buffett wants in particular:
- Wonderful Company at Fair Price
- Stable & Understandable Business
- Vigilant Leadership in Risk Management
This translate to the following 3 metrics I have on my list:
Thus, for these metrics, I will put a higher weightage in my scoring.
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Antony C. is a Singaporean dividend investor focused on building passive income through REITs, ETFs, and Dividend Stocks. With 15+ years of experience investing in Singapore, Hong Kong, and China markets, he founded IncomeBuddies.com to share practical wealth-building strategies tested in his own portfolio since 2008. His expertise has been featured in Yahoo Finance, Nasdaq, and NFAA, and he’s the published book author of "Start Small, Dream Big".
Singtel yield only 2.55%? I checked is about 3.7%. (182/4860)
You have a keen eye. 🙂 Yup, it should be 3.786%