Singapore’s Biggest Companies With A Dividend Yield of Over 4%

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

While the market cap of a company is not always a good indication of how big its business is, it is mostly still a useful sign of the company’s size.

And, size can have its advantages. With size, companies might have the scale to dominate their industries. If a company can turn the size-advantage into profits, it can then possibly lead to steady dividends. A recent report provided insights on the largest companies in Singapore’s stock market that offer a dividend yield of above 4%.

Here are the five largest companies by market capitalisation (figures as of 25 November 2016, unless otherwise stated):

  1. Singapore Telecommunications Limited (SGX: Z74) has the largest market cap in the Singapore stock exchange, weighing in at $61.7 billion. The telco is also sporting a trailing dividend yield of 4.6% and has delivered a total return of 4.9% over the last three years.
  2. Singapore-based bank Oversea-Chinese Banking Corp Limited (SGX: O39) has a market cap of $37.9 billion and has a dividend yield of 4.0%. This puts it in second place, in terms of size. OCBC’s stock has not provided any return over the last three years, though.
  3. Singapore Airlines Ltd (SGX: C6L) flies into third place with a market cap of $11.6 billion. The airline operator also has a trailing dividend yield of 4.5%. Unfortunately, SIA has a patchy track record when it comes to its dividends – the payout amount has fluctuated wildly over the years. The stock has eked out a total return of 1.2% over the past three years.
  4. Keppel Corporation Limited (SGX: BN4) is in fourth place with a market cap of just under $10 billion. The conglomerate has a trailing dividend yield of 5.5%. The sustainability of the company’s dividend was recently called into question. Keppel Corporation has delivered a negative three-year total return.
  5. In fifth spot is CapitaLand Mall Trust (SGX: C38U), with a market cap of $6.8 billion. It also has produced a three-year total return of 5%. The retail-based real estate investment trust has a trailing dividend yield of 5.8%.

The market cap and size of a company alone do not qualify it as a safe company to invest in. If the company is not able to translate its size into sustainable advantages, its business can falter and investors will suffer. As Foolish investors, we might want to put our thinking hats on to figure out if a company can continue to 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.