Why Singapore Telecommunications (SGX:Z74) Is Up 7.3% After Surging Earnings and Higher Interim Dividend

• On November 11, 2025, Singapore Telecommunications announced strong half-year earnings with net income rising to S$3.40 billion and declared an interim ordinary dividend of 8.2 cents per share, comprising a core and value realisation portion.
• The notably higher net income and increased dividend payout highlight the company’s efforts to deliver tangible value to shareholders amid robust financial performance.
• We’ll explore how the combination of significant earnings growth and a boosted interim dividend shapes Singapore Telecommunications' broader investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

What Is Singapore Telecommunications' Investment Narrative?

To appreciate Singtel as an investment, you have to believe in its ability to consistently generate healthy cash flow, adapt across markets and deliver returns via a mix of steady dividends and value-boosting initiatives, despite relatively slow top-line growth. The recent surge in net income and the higher interim dividend were driven by a large one-off item, but they strengthen the company’s shareholder appeal and may lift short-term sentiment. However, the slightly lower revenue and forecasts for falling earnings over the coming years temper the optimism and could keep expectations grounded. Meanwhile, the talks for a significant data centre acquisition, while not guaranteed, add an extra layer of uncertainty, as such deals could affect Singtel’s risk profile or capital returns. This balance between returning capital and dealing with operational and M&A risks, now sharpened by recent results, may reshape how investors weigh the catalysts and vulnerabilities in the near term.

But don’t ignore the uncertainty around future earnings and the impact of major deals. Singapore Telecommunications' shares have been on the rise but are still potentially undervalued by 27%. Find out what it's worth.

Exploring Other Perspectives

Most Simply Wall St Community members’ fair value estimates for Singtel fall between S$2.38 and S$6.61, with 11 unique views represented. Against this spectrum, recent one-off gains and deal discussions may amplify both the optimism and caution among market watchers. Consider these varied perspectives as you weigh Singtel’s next moves.

Explore 11 other fair value estimates on Singapore Telecommunications - why the stock might be worth as much as 37% more than the current price!

Build Your Own Singapore Telecommunications Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Singapore Telecommunications research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Singapore Telecommunications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Singapore Telecommunications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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