NetLink NBN Trust Deep Dive: Is This "Boring" Yield Play Still Worth It?

Описание: Today, we are looking at a stock that is arguably the most "utility-like" of all utilities in Singapore. It isn’t a flashy REIT with malls on Orchard Road. It isn’t a bank earning record interest margins. And it certainly isn’t a tech stock promising AI-driven growth.
But if you live in Singapore, you use its infrastructure every single minute of every single day, likely without even thinking about it.
I’m talking, of course, about NetLink NBN Trust (SGX: CJLU).

For years, NetLink has been the quintessential "sleep-well-at-night" stock for income investors in Singapore. It pays a reliable dividend, it holds a natural monopoly on the nation’s fibre network, and its business model is practically immune to economic recessions. After all, nobody cancels their internet subscription just because GDP growth slows down. In the hierarchy of needs for a modern Singaporean, I’d argue that WiFi sits right next to water and electricity.

But recently, the narrative has shifted slightly. After hovering in a tight range for what felt like an eternity, the share price has crept up over the past year. At the same time, we’ve seen headlines about dropping profits, rising costs, and a yield that has compressed to around the 5.5% mark.

So, the questions on many investors' minds are valid: Is the dividend still safe? Why are earnings dropping while dividends remain high? And perhaps most importantly, does it still make sense to add this "boring" giant to your portfolio today, or has the ship already sailed?

In this deep dive, we are going to peel back the layers of NetLink NBN Trust. We’ll look at its latest financial health, decode the confusing gap between its EPS and its DPU, stress-test its cash flows, and find out exactly what management is saying about their future spending.

As always, a reminder that this video is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the shares discussed, but what works for me might not work for you.

Alright, let’s jump right in.