Singtel&rsquo s management highlighted that their preference is for a dividend policy that delivers sustainable dividends that grow with underlying earnings.

  In a Friday report, OCBC says, &ldquo In the past, we understand that barring unforeseen circumstances, Singtel expected to maintain its ordinary dividends at 17.5 cents for FY19 and FY20, and thereafter revert to the payout ratio of between 60%-75% of its underlying profit. However, there has been no FY21 guidance given at this juncture.&rdquo

  In the short-medium term, competition is still very much alive in 4G, but the commercial services launched by TPG Singapore is a good sign, given that it was giving out free services for more than a year.

  Meanwhile, management is remaining optimistic on the recovery in Australia and believes it is in a strong position to take market share in a profitable manner.

  DBS Group Research also has kept its &ldquo buy&rdquo call on Singtel with a target price of $3.09 from $3.22 previously.