SingTel (Z74.SG) off 2.5% at almost 2-week low of $3.18, may end lower for third straight session, as investors continue to sell following telco’s below-view September-quarter results released Thursday, according to Dow Jones.

While improved dividend policy helped stock gain 1.8% Thursday, pullback since then suggests higher payout already priced in. Some broking houses remain upbeat over prospects despite fiscal 2Q11 net profit down 6.7% on-year at $892.2 million.

“We are pleased with management’s announcement of a higher payout ratio, a solid performance by Optus measured by subscriber growth, ARPU (average revenue per user) as well as margins, and management’s confidence in its full-year guidance across both Singapore and Australia,” says Goldman Sachs, which has Buy call with $3.53 target.

SingTel will pay 55%-70% of profits as dividends vs 45%-60% previously as it returns some excess cash amid lack of acquisition targets. Immediate support at 30-day moving average, last at $3.13.