Last week, I have sold off StarHub from my stock portfolio with a profit gain of 50.9% including dividends collected over the years. I guess Telecommunication stocks are not as resilient as everyone think it is. MobileOne has fallen and so has StarHub.
Below are the reasons why I sold off StarHub:-
Decreasing Dividends
Over the last 5 years, this was the first time StarHub has reduced its dividend from 5 cents to 4 cents that was paid out in May. Moving forward, I believe StarHub will continue to reduce its dividends.
Cable TV No Longer the Trend
With the increasing popularity of online video streaming websites such as Netflix, it is threatening the pay TV service business.
Are you still a Hubber?
Gone are the days where if you subscribe to StarHub’s cable TV, mobile line and internet broadband, you get perks or discounts off your bill. It is hard to fulfill the criteria nowadays with more choices out there. You may opt for Netflix instead of cable TV or internet broadband from myRepublic instead of Starhub internet fibre. I guess offering more discounts and perks is not sustainable for StarHub’s business.
Recycling Capital and Wait for Opportunity
I observed StarHub’s share price is on a downtrend, I want to sell it while still making slight profit. The capital plus profits from the sell transaction can be invested in another stock.