Here Are 6 Large Stocks With Large Dividend Yields Of Over 4%

There are many ways for investors to get investment ideas. One popular way is to run a screen on the market with valuation-based criteria such as price-to-earnings (PE) and price-to-book (PB) ratios.

For investors who are more focused on getting income from their stocks, one of the screening criteria they may favour would be the dividend yield. This metric gives us a picture of how much bang for our buck we’re getting in dividends when we invest in a stock. The higher the yield number is, the more dividends investors can get.

I thought it’d be interesting to see what big stocks in Singapore (by big, I mean companies which have a market capitalisation of S$1 billion or more) have a dividend yield of over 4%.

For perspective, the SPDR STI ETF (SGX: ES3) currently has a yield of 3.5%. The SPDR STI ETF is an exchange-traded fund (a type of fund that’s traded over the stock market like a stock) that tracks the fundamentals of Singapore’s market benchmark, the Straits Times Index (SGX: ^STI).

Turns out, there are many big stocks with yields of over 4%. Here are six companies I had selected at random:

You can see their yields and market caps in the table below:

High-yielding big stocks
Source: S&P Global Market Intelligence

While a high dividend yield can be a useful starting point for further research, it should be noted that there are many other important factors that investors must look at before any investing decision can be reached. Some include a stock’s gearing level and ability to generate cash.

It’s worth noting that stocks with high yields can become lousy investments too. So, it can be dangerous to invest in a stock based on its yield alone.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.