Rate Of ReturnST Engineering Just Won S$2.9 Billion in Contracts. Its Dividend Still Fails My Floor. 🦖
🔍 The Angle
The surprising part is not ST Engineering’s S$2.9 billion contract win. It is that a business can have a healthy order book, net debt at 2.77 times earnings, and interest coverage at 5.77 times, yet still fail the income test. I see a clear gap between business quality and dividend usefulness.
💰 What It Means For You
For a CPF, SRS, or dividend portfolio, the ordinary payout at around S$10.08 provides only about 1.6 percent income. That sits below my 3.2 percent Forensic Floor and well short of the 4.7 percent yield hurdle. Thursday’s results will show whether the payout picture receives a meaningful update.
📺 YouTube: https://youtu.be/zGlMbQGRvzA
📩 Substack: https://investingiguana.com/p/st-engineering-just-won-s29-billion
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