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STI generated 32% in total returns over three years

Over the past three years, dividends have been responsible for one-third of the Straits Times Index’s (STI) total returns. The index generated 20.5% price return with compounded dividends boosting that return to 31.8%, which means that the annualised return was 9.6% over the past 3 years. One-third of STI’s returns over the past 12 months were attributed to dividend returns.

As illustrated in the chart below, there was an element of consistency in STI total returns over the period with most of the total returns occurring in the first 12 months and the most recent 12 months.

STI Total Returns (5 Sep 2011 – 5 Sep 2014)

STI total returns

Source: Bloomberg, SGX My Gateway

 

The average and median total return for the 30 STI constituents over the last three years were higher at 36.4% and 36.2% respectively. Of these constituents, 26 generated gains and 4 stocks generated declines. The five strongest performances were generated by Thai Beverage Company Limited (SGX:Y92) , ComfortDelGro Corporation Limited (SGX:C52), Global Logistic Properties Ltd (SGX:MC0), StarHub Ltd (SGX:CC3) and DBS Group Holdings Ltd (SGX:D05). These five different stocks represent five different industries of Consumer Goods, Consumer Services, Real Estate, Telecommunications and Financials. Together, the revenue reach of these five stocks extends beyond Singapore to Thailand, United Kingdom, Australia, China, Hong Kong, Japan, Brazil, Vietnam and Malaysia.  The table below details the 30 STI constituent stocks sorted by three year total return.

Name SGX Code Market Cap: S$B Market Cap 3 years ago: S$B Total Return 3 years (%) Total Return YTD (%) Dvd Ind Yld (%) Px Chg Pct YTD (%)
THAI BEVERAGE PCL Y92 18.1 7.2 190.5 37.2 2.2 33.3
COMFORTDELGRO CORP C52 5.5 3.2 111.6 31.8 3.0 27.4
GLOBAL LOGISTIC PROPERTIES MC0 14.1 8.6 78.8 2.4 1.5 0.7
STARHUB CC3 7.2 4.5 70.4 0.3 4.8 -3.3
DBS GROUP HOLDINGS D05 44.7 33.1 58.3 9.8 3.2 6.2
SEMBCORP INDUSTRIES U96 9.2 9.2 47.6 -2.5 1.0 -6.4
CAPITALAND C31 14.3 15.8 47.4 13.7 2.4 10.9
SINGAPORE TECH ENGINEERING S63 11.5 10.4 46.3 -3.1 2.2 -7.1
SINGAPORE TELECOMMUNICATIONS Z74 62.3 48.1 45.8 9.6 4.3 6.8
KEPPEL CORP BN4 19.7 18.2 44.9 0.6 3.9 -3.2
HUTCHISON PORT HOLDINGS TR-U NS8U 7.8 N/A 42.9 12.8 6.8 4.5
SINGAPORE PRESS HOLDINGS T39 6.7 6.6 42.0 3.7 3.6 1.9
UNITED OVERSEAS BANK U11 36.4 28.1 41.2 10.8 3.1 7.0
HONGKONG LAND HOLDINGS H78 20.6 20.9 37.5 20.8 2.6 17.5
SIA ENGINEERING CO S59 5.2 4.4 36.7 -5.4 4.3 -8.7
JARDINE STRATEGIC HLDGS J37 52.5 22.2 35.7 16.8 0.7 15.9
JARDINE MATHESON HLDGS J36 54.1 20.6 34.8 21.9 2.2 19.0
ASCENDAS REAL ESTATE INV TRT A17U 5.7 3.8 32.8 10.7 6.0 7.3
OVERSEA-CHINESE BANKING CORP O39 38.4 33.0 30.6 2.0 3.5 -1.6
CAPITAMALL TRUST C38U 6.9 6.2 23.6 8.8 5.4 4.5
SINGAPORE EXCHANGE S68 7.7 8.0 19.5 0.9 3.9 -0.3
OLAM INTERNATIONAL O32 6.4 6.1 17.6 72.0 1.9 72.0
SEMBCORP MARINE S51 8.2 11.2 15.1 -8.8 2.8 -11.7
JARDINE CYCLE & CARRIAGE C07 15.7 13.0 9.1 26.2 3.1 22.6
SINGAPORE AIRLINES C6L 11.8 16.3 2.7 0.5 2.1 -3.0
CITY DEVELOPMENTS C09 9.0 11.4 1.5 4.0 0.8 2.8
NOBLE GROUP N21 9.2 13.1 -4.6 28.8 0.8 27.6
GOLDEN AGRI-RESOURCES E5H 6.5 9.7 -15.1 -5.6 2.2 -6.4
GENTING SINGAPORE PLC G13 14.9 26.7 -20.2 -17.8 0.8 -18.4
WILMAR INTERNATIONAL F34 20.3 36.0 -33.9 -5.2 2.4 -7.3

Source: Bloomberg (Data as of 5 Sep 2014), SGX My Gateway

Of the five strongest performers, Thai Beverage generated the highest three year total return of 190.5%. The five least performing stocks of the current 30 constituents over the period were Wilmar International, Genting Singapore, Golden-Agri Resources, Noble Group and City Developments.

Thai Beverage Company Limited

Thai Beverage was established in 2003 to consolidate its spirits and beer businesses in Thailand into a group company. In 2006, Thai Beverage expanded to the non-alcohol and food business in order to diversify its product portfolio. On 14 August 2014, Thai Beverage reported a net profit of $5.48 billion baht for the period ended 30 June 2014, a 12% increase for the same corresponding period in 2013. Thai Beverage has a market capitalisation of S$17.3 billion and generated a three year total return of 190.5%. In a three year period from 5 September 2011 to 5 September 2014, Thai Beverage’s market capitalisation has increased 142% from S$7.2 billion to S$17.3 billion. The stock went ex-dividend on 25 August 2014, distributing $0.15 baht per share in dividends.

ComfortDelGro Corporation Limited

ComfortDelGro is a land transportation company with a total fleet size of more than 46,300 buses, taxis and rental vehicles. ComfortDelGro operates in seven countries mainly Singapore, China, the United Kingdom, Ireland, Australia, Vietnam and Malaysia. On 13 August 2014, ComfortDelGro reported operating profit for the quarter ended 30 June 2014 increased by 6.5% year-on-year to S$119.9 million. ComfortDelGro has a market capitalisation of S$5.5 billion and generated a three-year total return of 111.6%. In a three year period from 5 September 2011 to 5 September 2014, ComfortDelGro’s market capitalisation has increased 69.6% from S$3.2 billion to S$5.5 billion. The stock went ex-dividend on 19 August 2014, distributing S$0.0375 per share in dividends.

Global Logistic Properties Ltd

Global Logistics Properties is a provider of modern logistics facilities in China, Japan and Brazil. Global Logistics Properties’ property portfolio of 27 million square meters is located across 76 cities, forming an efficient logistics network serving almost 800 customers. On 5 August 2014, Global Logistics Properties reported 18% increase in revenue year-on-year for the quarter ended 30 June 2014 to US$169 million. Global Logistics Properties has a market capitalisation of S$14.2 billion and generated a three-year total return of 78.8%. In a three year period from 5 September 2011 to 5 September 2014, Global Logistics Properties’ market capitalisation has increased 65.6% from S$8.6 billion to S$14.2 billion. The stock went ex-dividend on 22 July 2014, distributing S$0.045 per share in dividends.

StarHub Ltd

StarHub is Singapore’s fully integrated info-communications company, offering a range of information, communications and entertainment services for both consumer and corporate markets. StarHub operates a mobile network that provides 4G, 3G and 2G services. On 5 August 2014, StarHub reported a profit of S$94.3 million for the quarter ended 30 June 2014. StarHub has a market capitalisation of S$7.2 billion and generated a three year total return of 70.4%. Over the three year period from 5 September 2011 to 5 September 2014, StarHub’s market capitalisation has increased 58.7% from S$4.5 billion to S$7.2 billion. The stock went ex-dividend on 11 August 2014, distributing S$0.05 per share in dividends.

DBS Group Holdings

DBS Group Holdings is a financial services group in Asia, with over 250 branches across 17 markets. DBS Group Holdings provides a range of services in consumer, SME and corporate banking activities across Asia. On 1 August 2014, DBS Group Holdings reported net profit increased 9% year-on-year for the quarter ended 30 June 2014 to S$969 million. DBS Group Holdings has a market capitalisation of S$44.7 billion and generated a three year total return of 58.3%. Over the three year period from 5 September 2011 to 5 September 2014, DBS Group Holdings’ market capitalisation has increased 35.3% from S$ 33.1 billion to S$ 44.7 billion. The stock went ex-dividend on 13 August 2014, distributing S$0.28 per share in dividends.

Exchange Traded Funds (ETFs)

SGX lists two ETFs that track the performance of the STI – Nikko AM Singapore STI ETF and the SPDR® STI ETF. For more information on these ETFs, visit sgx.com/etf.

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