Maybank Kim Eng retained its buy rating on Singapore Post, driven by the company’s attractive dividend yield of 6.4% and stable earnings history.
Shares in SingPost, which provides postal and logistics services, were up 0.5% at $0.975.
SingPost’s recent issue of $350 million in perpetual securities commands the highest debt rating and its 4.25% coupon rate is the lowest, the brokerage said.
“We believe this is an opportune time to remind investors of the company’s financial strength and its core mail business’s fundamental stability,” it said.
With the extra funds safely in its bag, this year may be a good time for management to reward shareholders with better-than-usual dividends, as SingPost is unlikely to use all of the funds raised for acquisitions, Kim Eng said.
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