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Attention Dividend Investors, Singapore Could be the Best Place to Invest

Credit: Simon Cunningham

Hey there, investor.

If you are interested in investing for dividends, you may have come to the right place. According to a recent article from bourse operator Singapore Exchange Limited (SGX: S68), the Straits Times Index (SGX: ^STI), representing the boarder Singapore stock market, is offering the highest dividend yields in Asia.

Top-Dog in Asia, including Batam

Based on the sum of gross dividend distributions over the past year, the Straits Times Index has a dividend yield of 4.2%, as of 23 November 2015. The other Asian stock market indexes have an average dividend yield of 2.4%.

Here are a few more observations about the Straits Times Index’s dividends:

  1. Only three companies within the index distribute dividends on a quarterly basis. They are namely Capitaland Mall Trust (SGX: C38U)StarHub Ltd (SGX: CC3), and Singapore Exchange. Seven companies distribute dividends on an annual basis, while the rest are on a semi-annual schedule.
  2. The Straits Times Index has had a tough 2015 so far, clocking in a negative 9.5% total return from the start of the year to 23 November 2015. In fact, only seven of the 30 component stocks have recorded a positive return during the period.
  3. The top performing blue chip stock this year has been catering giant SATS Ltd (SGX: S58), with a 34.2% total return over the period measured. Hongkong Land Holdings Limited (SGX: H78) and ComfortDelgro Corporation Ltd (SGX: C52) are the next best performers, clocking in returns of 21.3% and 20.6% respectively.
  4. SATS is also one of the newcomers into the Straits Times Index. The other two are Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) and UOL Group Limited (SGX: U14).
  5. ComfortDelgro Corporation is the top dog when it comes to three year returns; it has generated an annual total return of 26.4% over the past three years. Thai Beverage Public Company Limited (SGX: Y92) is close behind with a 22% total annual return.

Looking at the performance of the index helps you, the dividend investor, to put into context the performance of your own stocks for the year so far. With a 4.2% weighted average yield for Singapore’s market benchmark, us investors may be fishing in rewarding dividend-waters.

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