The Top 10 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%.

A recent report provided insights to those dividend-paying blue chips that offer yields of above 4%. Here’re the top 10 blue chip stocks with the highest yields (figures as of 25 November 2016, unless otherwise stated). For the first five, go here. The following are the next five:

  1. Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) is in sixth place with a trailing dividend yield of 5.2%. The company’s dividend was reduced from S$0.055 per share in 2014 to S$0.045 in 2015. It has a market cap of around $3.3 billion. Over the last three years, Yangzijiang Shipbuilding has delivered a total return of a negative 5.5%.
  2. In seventh place is Singapore Telecommunications Limited (SGX: Z74) which is sporting a trailing dividend yield of 4.6%. The telco has the largest market cap in the Singapore stock exchange, weighing in at $61.7 billion. Singtel’s stock has also delivered a total return of 4.9% over the last three years.
  3. Singapore Airlines Ltd (SGX: C6L) flies into eighth place with a trailing dividend yield of 4.5%. Unfortunately, the airline operator has a patchy track record when it comes to its dividends, with the pay-out amount fluctuating wildly. The airline’s stock has eked out a three-year total return of 1.2% and weighs in with a market cap of $11.6 billion.
  4. Logistics and mail services provider Singapore Post Limited (SGX: S08) is in ninth place with a trailing dividend yield of 4.4%. Investors should note that Singapore Post has come out with a new dividend policy that could reduce its dividend payout in the future. Singapore Post has a market cap of $3.2 billion and has produced a total return of around 9.4% over the last three years.
  5. Rounding out the top ten is Singapore Press Holdings Limited  (SGX: T39) with a trailing dividend yield of 4.1%. Unfortunately, the media company’s dividend has been heading the wrong way over its last five fiscal years. SPH’s market cap is around $6 billion. The company has delivered a total return of just 0.5% 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.