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investors should continue to carry telco stocks in their portfolios mainly for their defensive earnings.
2 dark clouds hanging over Singapore telco stocks
They're no longer golden picks.
According to OCBC, Singapore telco yields have become far less attractive due to a couple of reasons.
Foremost is the spectre of rising interest rates that is making telco yields, which are currently forecasted at around 4.7%, far less attractive.
Second, the research firm does not see any potential growth drivers in what has become a "pretty saturated mobile market."
But despite these gloomy yield and growth outlooks, the research firm admitted that investors should continue to carry telco stocks in their portfolios mainly for their defensive earnings.
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