$SingTel(Z74.SG)has certainly come a long way from a few years ago when its stock price languished so much that it was named “Sink-tel” by some disgruntled shareholders. Of late, the stock price has been reaching new all-time highs on the back of the ST28 strategy which aims to transform SingTel into a growth-minded technology organisation. It intends to achieve growth and sustained value realisation by harnessing 5G, increasing data centres, improving corporate IT services, training an AI-enabled workforce and unlocking value from latent assets.

On the flip side, a higher stock price means that the dividend yield is reduced. When I first bought this stock more than a decade ago, the dividend yield was more than 5%. Now it is 2.48%.

While the weekly chart looks promising with fairly strong support at $4.9, there remain some headwinds that can impact the stock price:

1. Potential fines by IMDA for the 3-day service disruption in March in Singapore

2. Penalties for wholly-owned subsidiary Optus which have yet to be determined by the Australian authorities

3. Proposed amendment of the law to allow discounted SingTel shares (SDS) to be transferred from CPF to CDP. Holders of SDS can also sell the shares and receive the proceeds in cash instead of returning the money to their CPF accounts.