Singapore’s telco and telecom infrastructure counters, Singtel (Z74), StarHub (CC3) and NetLink NBN Trust (CJLU), remain staples for income-focused investors in Singapore.
Known for relatively stable cash flows and regular dividends, these stocks are sometimes compared on yield alone. However, their latest financial results suggest that while yields remain competitive, the underlying fundamentals are starting to differ across the three.
Singtel Reports Higher Earnings and Dividend Growth
Singtel reported stronger results for FY2025. Underlying net profit rose 9.3% year-on-year to $2.47 billion, while reported net profit reached $4.02 billion, supported in part by exceptional gains. The group declared a total dividend of 17.0 Singapore cents per share for FY2025 (financial year ended 31 March 2025), comprising both core and value realisation components. Its dividend framework remains tied to a payout of 70% to 90% of underlying net profit, alongside an additional value realisation dividend of 3 to 6 cents per share annually, funded by excess capital.
Based on a recent share price of around $4.88, Singtel’s trailing dividend yield stands at approximately 3.5%. While this is lower than its peers, the payout is supported by earnings growth. The company also announced an interim ordinary dividend of 8.2 cents for FY2026, up from 7.0 cents a year earlier, reflecting higher underlying earnings.
Read Also: Why Do Older Singaporeans (Who Never Bought Stocks) Have SingTel Shares In Their CPF Account?
StarHub Maintains Yield Amid Declining Profit
StarHub’s latest results present a more mixed picture. For FY2025, the company recorded total revenue of $2.4 billion and service revenue of $2.0 billion. EBITDA came in at $403.6 million, while net profit attributable to shareholders declined to $86.4 million. Despite the drop in earnings, StarHub maintained its total dividend at 6.0 cents per share for the year.
At a share price of about S$1.04, this translates to a dividend yield of roughly 5.8%, the highest among the three counters. The company has stated that it intends to maintain a dividend of at least 6.0 cents for FY2026, subject to business performance.
It has also guided that EBITDA for FY2026 is expected to be between 75% and 80% of FY2025 levels, with capital expenditure projected at 13% to 15% of total revenue.
NetLink NBN Trust Delivers Stable Distributions
NetLink NBN Trust continues to deliver consistent distributions. For the six months ended 30 September 2025, the trust declared a distribution per unit of 2.71 cents, following 2.68 cents for the preceding half-year. This brings its annualised distribution to approximately 5.39 cents per unit.
With units trading at about S$0.99, NetLink’s yield is around 5.4%. Its business model, owning and operating passive fibre network infrastructure in Singapore, supports relatively stable and predictable cash flows. Unlike the telcos, NetLink is less exposed to retail competition, though its growth is also limited.
Read Also: 4 STI Stocks That Have Seen Their Share Prices Supported Amid Rising Middle East Tensions
