MENU

Singapore’s Lowest-Yielding Blue Chips

moneySingapore’s 30 blue-chip shares that together make up the Straits Times Index (SGX: ^STI) currently yield around 2.5%. However, averages can be deceptive as the man with his head in the refrigerator and his feet in the oven once said – on average I should feel quite comfortable.

In a previous article, we looked at the Singapore benchmark index’s above-average dividend payers, namely the five highest-yielding big caps. Today, we will look at the Straits Times Index’s below-average payers – the five lowest-yielding blue chips.

Company

Share price

Yield*

IHH   Healthcare (SGX: Q0F)

S$1.34

0%

Jardine   Strategic Holdings (SGX: J37)

US$38.60

0.4%

Genting   Singapore (SGX: G13)

S$1.52

0.7%

Singapore   Airlines (SGX: C6L)

S$10.88

1.1%

Global   Logistic Properties (SGX: MC0)

S$2.69

1.1%

* Trailing 12 month dividend yields by courtesy of S&P Capital IQ

IHH Healthcare is one of Asia biggest hospital operators. It is listed on both the Singapore Stock Exchange and Bursa Malaysian. The company, which was formerly known as Integrated Healthcare Holdings prior to its flotation in 2012, not only has operations in Singapore and Malaysia but also in countries such as China, India, Turkey and Macedonia. The dual-list company has seen profits grow from S$34m in 2009 to S$265m last year but has yet to pay a dividend.

Jardine Strategic Holdings is the holding company of one of Asia largest conglomerates, Jardine Matheson Holdings, which in turn holds shares in Jardine Strategic Holdings. Through the complex inter-holding of shares the company has interests in Dairy Farm International, which runs Singapore’s second-largest grocer Cold Storage, and Jardine Cycle & Carriage, an auto dealer that owns a large stake in the Indonesian conglomerate Astra International. Other cross-holdings include property company Hongkong Land and hotel chain Mandarin Oriental.

Genting Singapore is one of two licenced operators of casino resorts in Singapore. It also owns Resorts World Sentosa, which is not only home to its 15,000 square metre casino but also home to a Universal Studios theme park and Marine Life Park. Genting Singapore, which has been spent heavily on developing its property portfolio, swung into profit in 2010 and has been profitable since.

When companies make profits, they can do one of two things with the money generated – they can either retain the money in the business or return it to shareholders through share buybacks or dividends.

It is hard to imagine that something as simple as dividends can cause a division amonst investors – but it can. Some investors believe that companies should always retain their profits and reinvest the money to grow the business. Consequently, they believe that the payment of dividends may indicate that a company has run out of good ideas to grow the business. On the other hand, some investors – income investors in particular – believe that the payment of dividends is a sign that a company is confident that earnings would continue to grow. So they want a share of the spoils.

Whether you are an income or growth investor, The Motley Fool’s purpose is to help the world invest, better. Click here now for your FREE subscription to Take Stock — Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock — Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead. 

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