SPH

SPH: SCB ugrades to Outperform from In-Line and raises TP to $4.49. House note that SPH is distinguished by its presence in an industry with formidable barriers to entry and a virtual monopoly on Singaporean content. Add that div yield highest among Singapore yield plays, at 6.2% is 23ppt higher than the average for peer companies, which provide yield in excess of 4%. SPH is a defensive play that has outperformed the FSSTI by 6% in the past five yrs. Accounting for both dividends and capital gains, SPH has produced a total shareholder return of 8.1% pa in the past five years. Property portfolio an under appreciated asset, with SPH’s property portfolio is worth $3.02bn ($1.90/sh). The co has invested in suburban retail malls to insulate the group against the vagaries of the media business. Its total shareholder return has averaged 8.1% pa in the past five years. Conclude that dividend yield of 6.2% is the highest among the classic SG dividend plays.