Singapore’s Billion Dollar Financial Companies with the Best Dividend Yields

As of 13 May 2016, the Singapore stock market had 28 primary-listed financial firms with market capitalisations of over S$1 billion.

From the list of 28, there are 20 that fall under the real estate investment trust (REIT) category. The remaining eight come from areas such as banking, capital markets, consumer finance, and insurance. A recent report provided some insights to the distribution yields and the performance of these billion-dollar financial firms.

Here’re some highlights from the report (figures as of 13 May 2016, unless otherwise stated):

  1. Singapore’s banking trio of DBS Group Holdings Ltd  (SGX: D05)Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11) are part of the group of billion dollar financial firms. This might not be a surprise. DBS Group weighed in with a market capitalisation of over $37 billion while OCBC is not far behind with a market cap of $34 billion. UOB is slightly smaller at $28.6 billion.
  2. In terms of the banks’ dividend yields, OCBC topped the list with a yield of 4.3%. DBS Group was not far behind with a yield of 4%. Meanwhile, UOB offered a yield of 3.9%. When it comes to total returns, DBS Group was the best performer over the last five years with a total return of over 20%. OCBC and UOB had logged in total returns of 7.6% and 8.9% over the same period.
  3. OCBC’s insurance subsidiary, Great Eastern Holdings Ltd (SGX: G07), towered over the three banks in terms of its five-year total return. The insurance outfit had registered a total return of over 67%. It also offered a 2.3% dividend yield and had a market cap of over $10 billion.
  4. On the lower end of the market cap scale is ARA Asset Management Limited (SGX: D1R), with $1.3 billion. The real estate management firm offered a dividend yield of 3.9% and had total returns of a little under 10% in the past five years.

The best income stocks may not be those with a high dividend yield. Each financial firm comes with a different investing risk profile. As Foolish investors, we might want to put our thinking hats on to find the companies with dividends that are sustainable and if possible, have the ability to grow over the long term.

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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 owns shares in ARA Asset Management.