Should my relative keep or sell away her SIA shares?

lengendhw

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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?


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lzydata

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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

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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.


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lzydata

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


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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:

https://forums.hardwarezone.com.sg/threads/singapore-airlines-official-sgx-c6l.2957588/page-257
 

lengendhw

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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?


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reddevil0728

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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?


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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

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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).


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lengendhw

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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.


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lzydata

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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

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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.


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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

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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
 
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