The latest news going around in the market is that Starhub is sitting on lots of excess cash. It seems that Starhub management will be favouring more of an increase in dividend paid out rather than pursuing a capital return exercise. Either way, it spells good news for long term investor of Starhub in terms of unlocking further values from the company and re-investing the cash in other yield stocks.
This is also a good testament to the Dividend Yield Strategy rather than other investment philosophies such as re-allocation/balancing or sell high strategy. The strength of the management of a company is a very important attribute of a well run company. If we have just took a look at the current market price as well as the PE ratio of 17.1, many experts would have recommended selling at the current high price to lock in unrealised profits or selling to rebalance one's portfolio.
High dividend stocks can help slow down the eroding effects of inflation on one’s wealth.
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