The Giant Dividend Stocks In Singapore

There are a good number of big companies in Singapore’s stock market.

Based on a report by bourse operator Singapore Exchange Limited (SGX: S68) that was published on Monday, the stock market here currently boasts of 91 companies with market capitalisations of over S$1 billion.

These sizable companies come from a range of industries and almost all 91 of them offer a dividend. Here’re some highlights from the report (figures as of 13 May 2016, unless otherwise stated):

  1. The SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI), may serve as a good basis for comparison when looking at the dividend yields of individual companies. As of 17 May 2016, the SPDR STI ETF offered a dividend yield of 3.5%.
  2. Singapore’s largest listed company, Singapore Telecommunications Limited (SGX: Z74), had a market cap of almost S$62 billion. Singtel also offered a dividend yield of 4.5%. Meanwhile, its peers StarHub Ltd (SGX: CC3) and M1 Ltd (SGX: B2F) were offering a yield of 5.9% and 6.4%, respectively. StarhHub expects to maintain its dividend per share at a level of S$0.20 this year. Meanwhile M1 had cut its dividend by almost 20% in 2015.
  3. Port operator Hutchison Port Holdings Trust (SGX: NS8U) is the billion-dollar company with the highest yield. On a trailing 12 months basis, the trust had an 11% dividend yield. Unfortunately, like M1, Hutchison Port Holdings had also cut its dividend in 2015 – by 16%.
  4. Real estate investment trusts (REIT) feature strongly in the list too. There are a total of 20 REITs that have market capitalisations of above S$1 billion. CapitaLand Commercial Trust (SGX: C61U) is among the top five largest REITs and offered a distribution yield of 6.2%. The REIT increased its distribution by 3.3% in its latest quarter. But, CapitaLand Commercial Trust also cautioned about the “new above-normal office supply” in 2016 which may put pressure on rental yields.
  5. Elsewhere, catering giant SATS Ltd (SGX: S58) and transport giant Comfortdelgro Corporation Ltd (SGX: C52) had dividend yields which fall below the SPDR STI ETF’s. The former and the latter both had a dividend yield of 3.2%.

High trailing dividend yields can look tasty for investors, but as M1 and Hutchison Port Holdings Trust had shown, a stock’s dividend need not necessarily be maintained. For CapitaLand Commercial Trust, there are also some dark clouds around its business in the near-term future given the office-supply situation.

When it comes to investing for dividends, as Foolish investors, we might want to put on our thinking hats to figure out whether a company’s dividend is sustainable.

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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.