Should my relative keep or sell away her SIA shares?

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
She has about 40000 SIA shares. She keeps complaining SIA is not giving dividends. So if you are her, what will you do? Sell away and buy other stocks( please suggest the stocks) or hold it and hope the shares will rise in value(Yesterday is about S$5.10). But must hold how long?


Sent from EDMWER app!
 

lzydata

Master Member
Joined
Oct 16, 2010
Messages
4,732
Reaction score
941
Oh my god I wonder why SIA has not been giving dividends these past 2+ years...

o_O

She sounds a bit out of touch with what is going on?

Still want dividends? The company would have gone bankrupt without government support and Temasek's bailout.
 

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
Oh my god I wonder why SIA has not been giving dividends these past 2+ years...
o_O
She sounds a bit out of touch with what is going on?
Still want dividends? The company would have gone bankrupt without government support and Temasek's bailout.

So what's your recommendation? For me, I am thinking more countries are opening up, so should keep the SIA shares.


Sent from EDMWER app!
 

lzydata

Master Member
Joined
Oct 16, 2010
Messages
4,732
Reaction score
941
So what's your recommendation? For me, I am thinking more countries are opening up, so should keep the SIA shares.


Sent from EDMWER app!

I think it is hard for the share price to rise much more than current level because of the overhang of the MCBs. At some point they will have to either get some new financing to redeem the MCBs, or there will be a lot of new SIA shares issued. And also hard to see how to restore the dividend before redeeming the MCBs.

You can read the existing thread on SIA for more news and opinions:

 

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
She is also thinking to sell away all the SIA shares and buy bank stocks.

Our local banks are OCBC, UOB and DBS. In terms of dividends yield, which bank will you suggest?


Sent from EDMWER app!
 

reddevil0728

High Supremacy Member
Joined
Dec 16, 2005
Messages
48,681
Reaction score
1,334
She is also thinking to sell away all the SIA shares and buy bank stocks.

Our local banks are OCBC, UOB and DBS. In terms of dividends yield, which bank will you suggest?


Sent from EDMWER app!
Dividend yield we know is historical.

you can go sum up the dividend paid divide by the share price to get the historical yield. This one you can count yourself. Don’t need people to think which is better

you can assume that’s the forward yield but it’s not guaranteed.
 

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
Dividend yield we know is historical.
you can go sum up the dividend paid divide by the share price to get the historical yield. This one you can count yourself. Don’t need people to think which is better
you can assume that’s the forward yield but it’s not guaranteed.

I roughly calculate is UOB pays the most dividends(share price to dividends paid).


Sent from EDMWER app!
 

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
I think it is hard for the share price to rise much more than current level because of the overhang of the MCBs. At some point they will have to either get some new financing to redeem the MCBs, or there will be a lot of new SIA shares issued. And also hard to see how to restore the dividend before redeeming the MCBs.
You can read the existing thread on SIA for more news and opinions:
hwz-logo-1500.png

Singapore Airlines *Official* (SGX:C6L)
Haha I think it will be around the diluted NAV per share, so maybe in the $3.50 range. But if the MCBs don't get redeemed early then I'm fairly certain there will be no dividends paid out until 2030/2031. Hence I'm not clear what's propping up the share price. Very limited headway for capital...
icon.ico

forums.hardwarezone.com.sg

Actually I don't like SIA personally.
If i remembered correctly, might be wrong. Last year, even their top management also don't exercise their rights to buy SIA shares? Correct me if I am wrong.


Sent from EDMWER app!
 

lengendhw

Senior Member
Joined
May 6, 2006
Messages
2,064
Reaction score
15
Later imagine based on what ppl say here, she sell Liao, sia stocks chiong.
will she blame you or not?

Yup, that's why I want to read more recommendations here. Not just bank stock, also can buy some Reits stocks. She got too many SIA shares and it is not giving her dividends. See also angry.


Sent from EDMWER app!
 

lzydata

Master Member
Joined
Oct 16, 2010
Messages
4,732
Reaction score
941
I am not sure to what extent people bought into SIA as a dividend stock, but clearly the airline business is quite different in nature from banks, REITs or even telcos which have also cut dividends in last few years. Much more cyclical and prone to failure without government support. SIA was the outlier in its industry until the once-in-a-century storm came.

They didn’t sub the MCB if not wrong

That's the one. I thought it was not wrong of them too, as MCBs make no sense for individual investors to hold. But it became a political problem so they had to do it the second time round :LOL: Can't recommend that the general shareholder subscribe to MCBs but not themselves.
 

reddevil0728

High Supremacy Member
Joined
Dec 16, 2005
Messages
48,681
Reaction score
1,334
Yup, that's why I want to read more recommendations here. Not just bank stock, also can buy some Reits stocks. She got too many SIA shares and it is not giving her dividends. See also angry.


Sent from EDMWER app!
Yea but if the recommendations here you read later u tell her, and she sell and sia shares go up.

will blame you or not?
 

reddevil0728

High Supremacy Member
Joined
Dec 16, 2005
Messages
48,681
Reaction score
1,334
I am not sure to what extent people bought into SIA as a dividend stock, but clearly the airline business is quite different in nature from banks, REITs or even telcos which have also cut dividends in last few years. Much more cyclical and prone to failure without government support. SIA was the outlier in its industry until the once-in-a-century storm came.



That's the one. I thought it was not wrong of them too, as MCBs make no sense for individual investors to hold. But it became a political problem so they had to do it the second time round :LOL: Can't recommend that the general shareholder subscribe to MCBs but not themselves.
In the first place their shares are mostly granted to them.

so now that they had to pay for MCB, the might not fancy
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.
Top