Seeing the market panic selling just now in the afternoon, I take the opportunity to buy 2 lots of Singtel stock @ $2.93 using CPF. Reason of buying is because Singtel is increasing its december interim dividend from 5.6 cents last year to 6.2 cents this year. That is about 10% increase in dividend. I will expect the Aug 10 dividend to be 10% more than the Aug 09 dividend of 6.9 cents.
Let assume Singtel is giving 7.6cents(10% more than 6.9 cents) for Aug 10, then the total dividend for the year will be 6.2+7.6 = 13.8cents. So based on the price I bought today, the yield will be about 4.7% which is not a bad deal to me.
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