StarHub propped up by stable dividends despite muted earnings outlook

Growth prospects are clouded by intense competition.

Stable dividends are the lone bright spot for StarHub, whose earnings are under threat from intensifying competition and the expiry of Nationwide Broadband Network grants.

According to Nomura, StarHub's stock has been range-bound for almost 2 years with little earnings growth in the horizon.

The broadband segment will remain competitive in the near term, while growth its mobile, pay-TV, and enterprise segments will be remain muted.

“Some of these risks could be offset by potential growth in enterprise, and stability in the cable business, where it continues to execute well. Otherwise, its 20c annual dividend is sticky and appealing,” stated Nomura.