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

As of 13 May 2016, the Singapore stock market boasted of 17 primary-listed consumer firms with market capitalisations of over S$1 billion.

From the list of 17 companies, 10 fall under the consumer staples category while the rest are from the consumer discretionary category. A recent report provided some insights on the distribution yields and the performance of these billion-dollar consumer firms.

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

  1. Let’s look at the discretionary sub-group first. Jardine Cycle & Carriage Ltd (SGX: C07) topped this group in terms of market capitalisation. The vehicle distributor weighed in with a market cap of $12.7 billion. Casino operator Genting Singapore PLC (SGX: G13) came in at second place with a market cap of $9.4 billion. The former had a dividend yield of 3% while the latter had a dividend yield of 1.9%. Investors may want to note that both companies had delivered negative total returns over the past five years.
  2. Singapore Press Holdings Limited  (SGX: T39) did better than the previous two companies. The newspaper publisher sported a dividend yield of 3.8% and had clocked in five-year total returns of 37%. The company, which had a market cap of $6.2 billion, is currently facing a difficult transition away from its traditional advertising business.
  3. The consumer staples segment has its own heavyweights. Wilmar International Limited (SGX: F34) topped the list with a market cap of over $20 billion. It also had a dividend yield of 2.5%. Thai Beverage Public Company Limited (SGX: Y92) is next in line with a market cap of $18.8 billion. While Thai Beverage is the smaller company when compared to Wilmar, the former actually has a better dividend yield (2.8% vs. 2.5%) and total return over the past five years (216% vs. -33%).
  4. On the smaller end of the scale, Sheng Siong Group Ltd (SGX: OV8) made the list of billion dollar companies with a market cap of $1.3 billion. The popular supermarket chain had a dividend yield of 4%.

The best income stocks may not be those with a high dividend yield. Each consumer 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 doesn't own shares in any company mentioned.