Keppel Ltd shares demonstrated resilience on Friday, closing 0.17% higher at S$11.64, a performance that outpaced the broader Straits Times Index which declined 0.8%.
Brokerage Bullish on Dividend Outlook
UOB Kay Hian analyst Adrian Loh increased his price target on Keppel to S$13.23, citing strong FY2025 results and a significant boost to shareholder returns. The upgrade follows Keppel's guidance for total dividends of approximately 47 Singapore cents per share for FY2025, representing a 38% increase from the prior year. This dividend surge is largely supported by proceeds from the company's ongoing asset monetization program.
Key Dates and Strategic Execution in Focus
Investor attention is now fixed on the execution timeline. The stock is set to trade ex-dividend on April 27, with a record date of April 28 and payment scheduled for May 8. The company's annual general meeting is slated for April 17. The market is closely monitoring the progress of asset sales, which are critical to funding the enhanced dividend framework. A notable delay is the pending regulatory approval for the sale of the M1 telecommunications business, though management has expressed confidence in its eventual closure.
The company's strategic shift towards an asset-light model, focusing on management and operations, hinges on its ability to efficiently divest non-core holdings. While the property market and deal approvals will influence the pace and value of these exits, the announced dividend plan signals a firm commitment to returning capital to shareholders.
Trading resumes on Monday with investors awaiting further updates on divestment progress and any new analyst commentary.