Singtel or Capitaland Mall trust? Help needed!?

Hi!

One is in Telco, one is in real estate (REITS). Not sure about Singtel but I saw its share price isnt doing quite well, although, there might be a positive change if, with Grab, gets the digital bank license. As for CMT, it is going to merged with CCT, it is generally more defensive and gives a steady income and the price have not reach pre-covid levels. Oh ya, if the yield is too high, there may have a underlying reasoning that caused it, check the payout ratio for Singtel, if its too high, it may be unsustainable. (Reits minimum should be 90%, so its fine for CMT)

You might want to go to dividend.sg to check out the yoy dividend payout to see the trends of the dividend payout. Hope this helps!

Hi Fuzhong,

They are fundamentally different business models.

You have to ask yourself, which is more likely to do well in the long run?

Having said that, Singtel's share price is depressed for a reason and their expansion into foreign countries is facing some headwinds. CMT is also looking to expand, but we have yet to see the outcome of that.

You cannot just look at dividend yield. You will end up falling into the dividend trap. Sometimes, if the yield is too high, you have to ask yourself why this is so. For example, Starhub has a very high dividend yield. But the share price fell over the years. So even if you enjoyed 10% yield, your total returns are still negative. Same goes for Lippo malls which is a retail REIT as well, with high yield but declining unit price and a negative total return.

If both turn out to be suitable for you and you can't decide, just put 50/50. That'll hedge your risk.