$SIA(C6L.SG)announced a total dividend of S$0.29 per share, with the ex-dividend date on 11 August 2026.

Seeing the upcoming dividend and SIA's share price around S$7.60, I thought it was a good opportunity to buy the stock and receive the dividend. My main consideration at the time was the attractive dividend payout.

After the stock went ex-dividend, the share price declined. It closed at S$7.15 on 11 August, compared with my purchase price of S$7.60. By today（23 September）, the share price had fallen to around S$6.66, meaning the decline was much larger than the S$0.29 dividend I received.

Despite the price decline, I decided to continue holding the position. SIA still has a strong balance sheet, with S$10.48 billion in cash reserves, and continues to expand its international network.

The company is also continuing to develop its longer-term strategy through its international network and its investment in Air India. However, Air India's financial performance remains something I would monitor closely, particularly after recent reports that Air India is seeking additional funding.

A high dividend does not necessarily mean a good entry point. Before buying a dividend-paying stock, I should first understand what is driving the company's earnings and what risks could cause the share price to fall.