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The Top 5 Billion-Dollar Dividend-Paying Stocks

Singapore’s stock market has its fair share of companies with billion-dollar market capitalisations.

As of 25 November 2016, there are 96 listed entities here with market capitalisations of S$1 billion or more. Of the list of 96, 37 have a dividend yield of more than 4%. A recent report provides some insights to these gargantuan dividend-paying stocks.

Here’re the five listed entities with the highest yields (figures as of 25 November 2016, unless otherwise stated):

  1. On top of the heap is Frasers Hospitality Trust  (SGX: ACV) with a trailing distribution yield of 9.6%. The hospitality-based stapled trust has a market cap of around $1.17 billion. Frasers Hospitality Trust was listed in mid-2014.
  2. Lippo Malls Indonesia Retail Trust (SGX: D5IU), which owns retail malls and spaces in Indonesia, weighs in with a 9.2% distribution yield, clinching the second spot. Over the last three years, the REIT has delivered a total return of 5.9%. Lippo Malls Indonesia Retail Trust has a market cap of $1.05 billion.
  3. Port operator Hutchison Port Holdings Trust (SGX: NS8U) is in third place with a yield of 8.9%. Unfortunately, the business trust had cut its distribution by 16% in 2015. For the first-half of 2016, it further reduced its distribution by 10.8% year-on-year. The trust has produced negative total returns over the last three years and has a market cap of $5 billion.
  4. Telco M1 Ltd (SGX: B2F) sits in the fourth spot with a dividend yield of 7.8%. In a similar manner to Hutchison Port Holdings Trust, M1 had cut its dividend per share from 18.9 cents in 2014 to 15.3 cents in 2015. Notably, the telco has also generated a total return that is negative over the past three years. M1 has a market cap of $1.8 billion.
  5. Far East Hospitality Trust (SGX: Q5T), which owns serviced residences and hotels in Singapore, rounds up the top five with a distribution yield of 7.7%. The stapled trust’s three-year total return is a negative 6.6%. It has a market cap of $1.04 billion.

High trailing dividend yields can look tasty for investors. But there could be good reasons why such stocks carry high yields – perhaps they have had a history of lowering their dividend payments. As Foolish investors, we might want to put our thinking hats on to figure out whether a company can pay a sustainable dividend.

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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.