Bursa Malaysia Stock Watch

Dividend yield for telco sector 'attractive'

kltrader
Publish date: Thu, 02 Sep 2010, 04:25 PM
kltrader
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The telco sector continues to revolve around the dividend theme in view of the saturation on the Malaysian mobile landscape.

OSK Research said the divided yield for the sector ranges from six per cent to eight per cent, which is generous and attractive, when compared with the bigger FBM KLCI components and consumer stocks.

The top buy, according to the research house, remains Axiata for exposure to domestic and regional telecoms, due to its robust regional growth prospects and the maiden dividend in financial year 2011(FY11).

OSK Research has maintained its neutral recommendation on DiGi despite continuing capex efficiency as valuations are fair at 16x FY11 earnings, supported by its dividend yield of seven per cent to eight per cent.

As for Maxis, the research house is maintaining its neutral rating for it. -- Bernama
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