The reason for my investment are as follows:
- I think the possibility for "long-term" oil price recovery is quite high.
- At my entry price of $8.17, historical yield is more than 5%. This satisfies my yield income investing criteria for a strong fundamental company with economic moat and consistent dividend history
- Many retail investors favour SembCorp over Keppel Corp due to the former's uitility business which is deemed more stable in terms of earnings. However, as I am already holding CitySpring for uitility exposure, I think Keppel Corp will be able to diversify my portfolio.
I am not sure if Keppel Corp will rebound or head lower from here, but am now better prepared to treat it as part of my income-investing portfolio.