Here Are The 10 Blue Chips With The Highest Dividends Yields At The Start Of 2017

Another year has come to an end and it is a good time to tally up the scores.

recent report by Singapore Exchange Limited (SGX: S68) scored all the 30 stocks that make up the Straits Times Index (SGX: ^STI) – the 30 are often referred to as blue chips – and provided information on their dividend yields at the end of 2016. It might be worth taking a look at the blue chips and see what had transpired in 2016.

Here’re the five dividend blue chips with the highest dividend yields. You can see the next five highest-yielding blue chips below (figures as of 30 December 2016 unless otherwise stated):

  1. Sixth place belongs to Keppel Corporation Limited (SGX: BN4). The oil and gas conglomerate sports a trailing dividend yield of 5.2%. However, Keppel Corp has been dogged by a range of problems including the bankruptcy of a major customer (Sete Brasil), and a tough operating environment. The company had cut its dividend in 2015 and the first half of 2016. Keppel Corp’s shares also delivered a negative return of 6.3% in 2016.
  2. In seventh place is Singapore Telecommunications Limited (SGX: Z74), which sports a trailing dividend yield of 4.8%. Much like its peer StarHub Ltd (SGX: CC3), concerns around Singtel might include increased competition from the new fourth telco. Singtel’s shares delivered a total return of 4% in 2016.
  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 its dividend per share fluctuating wildly from year to year. The airline’s total return was a negative 10% in 2016.
  4. Next on the list is Singapore Press Holdings Limited  (SGX: T39) with a trailing dividend yield of 4.2%. Unfortunately, the media company’s dividend has been heading the wrong way over its last five fiscal years. SPH has delivered a total loss of 6.1% in 2016.
  5. Rounding up the top 10 is Oversea-Chinese Banking Corp Limited (SGX: O39). The Singapore bank recorded a total return of 5.6% in 2016. Concerns over the fallout from the oil and gas sector and digital disruption could be the concerns du jour for the bank.

There is usually a good reason as to why companies or REITs are offering high yields. As investors, it is our duty to find out the possible reasons and decide whether the concerns are valid or not. In doing so, we can make better investing decisions.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.