The Top 5 Blue Chip Stocks With A Dividend Yield Of Over 4%

In Singapore’s stock market, the term ‘blue chip stocks’ are used to refer to the 30 stocks that make up the Straits Times Index (SGX: ^STI). And, some of them actually have dividend yields of over 4%.

recent report provided insights to those dividend-paying blue chips that offer yields of above 4%. Here’re the blue chip stocks with the highest yields (figures as of 25 November 2016, unless otherwise stated):

  1. Ascendas Real Estate Investment Trust (SGX: A17U) lands in the top spot with a trailing distribution yield of 7.2%. The real estate investment trust (REIT) has a market cap of around $6.5 billion and focuses on owning industrial properties in Singapore (it currently has some properties in Australia as well). Over the last three years, Ascendas REIT has delivered a total return of 7.5%.
  2. In second place is StarHub Ltd (SGX: CC3) which is sporting a trailing dividend yield of 7%. Lately, concerns have arisen on the sustainability of its dividend. The local telco has a market cap of $4.9 billion. StarHub’s stock has also delivered a negative total return over the last three years.
  3. Another REIT, CapitaLand Commercial Trust (SGX: C61U), jets into third place with a trailing distribution yield of 5.9%. The REIT has produced a total return of 5.9% over the past three years and weighs in with a market cap of $4.6 billion. CapitaLand Commercial Trust owns a collection of commercial properties in Singapore.
  4. CapitaLand Commercial Trust’s cousin, CapitaLand Mall Trust (SGX: C38U), is in fourth place with a trailing dividend yield of 5.8%. The retail REIT has a market cap of $6.8 billion, slightly above Ascendas REIT. It also has produced a three-year total return of 5%.
  5. Finally, Keppel Corporation Limited (SGX: BN4) is in fifth place with a trailing dividend yield of 5.5%. Like StarHub, the sustainability of its trailing dividend has also been called into question. Keppel Corporation has a market cap of just under $10 billion but has delivered a negative total return over the last three years.

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.