SINGAPORE (Oct 8): Singapore Press Holdings, with its steady dividend payouts, has been the mainstay of many an investor’s portfolio. Yet, over the past few years, its dividends have been declining (see Chart 1).

The newspaper company’s net profit had been falling from FY2013 to FY2016 (see Chart 2), yet despite that, it kept its payout ratio at between 84% and 148%. SPH’s dividends per share may continue to fall, as the company may prefer to divert capital to invest in new opportunities. Last month, the company announced a couple of new investments that are likely to impact its dividend payouts. In addition, SPH will need to finance its share of the development of The Woodleigh Residences, from which it is unlikely to book revenue and profits until well into CY2019.

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