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The Weekly Nibble: Why You Should Be Wary of StarHub Ltd’s Market-Beating Yield

Here are some of the most interesting articles that appeared on the Motley Fool Singapore’s website this week.

3 Factors to Consider When Analysing a REIT

There are a considerable number of real estate investment trusts (REITs) listed on our local bourse. Some of them operate solely in Singapore while others are diversified geographically. Other than geographical diversification, REITs can also be diversified in terms of sectors.

With so many REITs available, are there quick ways to choose the right REITs? You can check out Jeremy Chia’s article above to learn more.

When to Use EBIT To Evaluate Companies?

EBIT, EBITDA, EPS. Confusing!

Earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation, and amortistation (EBITDA), and earnings per share (EPS) are some of the metrics investors can use to determine the profitability of a company. In his article, Jeremy explores what EBIT is and when to use it when evaluating stocks. He also tells us to be mindful of comparing EBIT with earnings.

(Meanwhile, if you also want to learn about EBITDA, you can head here. As a quick note on EPS, it is simply the profit of a company divided by the number of outstanding shares.)

On StarHub Ltd

StarHub Ltd (SGX: CC3) was one of the worst performers amongst the Straits Times Index (SGX: ^STI) stocks last month. In March alone, its stock price fell by 8% to end at S$2.30.

Even though the stock has fallen by a considerable amount in the previous month and also over the past 12 months, there are some things to like about the business as shown by Lawrence Nga here. (Nope, the telco’s high dividend yield is not one of them. In fact, you should check out another of Lawrence’s piece here on why you should be cautious of StarHub’s market-beating yield.)

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.